Thursday 28 September 2017

How Cash-Flow Projections Can Help Grow Your Business


Cash inflow is the lifeline of your start-up business and it comes from various sources such as receipt of a loan, interest on savings, payments from customers, monetary infusion from an investor, and investments. Cash is essential for running your business as you get payment option for various expenses such as stocking raw materials, salary of employees, office rent and other operating expenditure. In fact, positive cash flow is good as it indicates that your business is running smoothly. Also, when it occurs in large amount, cash flow is better as it will permit you to do other investments such as hire new employees or open branch on other location and helps in growing your business further.


Understanding Your Cash Flow

Typically, cash transfer in and out of your start-up business can be put in order into following three categories:

·         Operating cash flow: Cash associated with everyday operations of your start-up business like   gathering from clients and paying expenses

·         Investing cash flow: Cash associated with the sale or purchase property, plant, equipment

·         Financing cash flow: Cash transfer in and out to investors such as loans, line of credit as well as   equity

All these categories and cash usage can be coupled to provide a detailed picture of how cash flow varies time to time. This variation can give you clear picture of how much amount of cash your business actually has. This information will not only help you in understanding the current and past cash flow but also in projecting your future needs.

Projecting Your Cash Flow

Typically, the cash flow projections are driven by your operating cash flow. Ideally, operating cash flow is being projected either weekly or monthly for determining whether you need support from funding activities. As investing activities are designed on this basis for several businesses. Until and unless you are not in a progressive growth phase that needs purchase of assets, you will not have enough cash for further investments. As this tends to be larger transactions, they have considerable impact on cash flow of your business.

Usually, it has been observed that financing activities refer as plug in the model of your business cash-flow. Any insufficiency in investing or operating cash flow can be covered with money from various financing activities. As it takes time in finding potential lenders or investors in getting cash, it’s better to know in advance how much and from where your business will get funding for balancing its cash flow.

Cash-Flow Tips

Cash flow depends totally on time. Specifically, when a transaction takes place, you don't feel its impact immediately. While projecting the cash flow of your business, do consider the following things:

Be Conservative

Vendors want that the customers pay early but customers mostly pay late. Usually, it does not happen the other way around. It can be essential to create assumptions considering negative cash flow for ensuring that you have enough credit for covering that cash shortage.

Include a Minimum Cash Balance

 While projecting cash flow of business, always remember that one will never complete month with   negative cash flow. If the cash flow you are operating with is negative, then you can consider compensating all the way through asset sale or by borrowing cash.

Moreover, management of cash flow is critical for your business and considering your business expenses allow you to plan for future expenditure and know the projected profit from that business which in turn will help in managing your cash flow.

Alcor M&A is a leading advisory firm providing financial services with an emphasis on customized solutions in the areas of M&A advisoryJoint Venture AdvisoryFinancial Advisory,  Private Equity,  Debt Financing  and International Business Development. These services leverages insights, relationships and a culture that emphasizes a strong orientation towards excellence.

For additional information on how ALCOR MNA can help you Grow your Company, Complete the Enquiry form One of our representatives will contact you within one business day.  

                                                                       
                                                                  
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Wednesday 27 September 2017

Managing Your Working Capital


Working capital is believed to be the life line of companies that are based on product. Without the required working capital for purchasing materials, pay your employees, or do marketing of your products efficiently, one will find your new business venture. It’s quite obvious most people don’t want to become their own business’s accountant or bookkeeper, but being the owner of a small business, you have commended to wear several hats. Most of newer brands and manufacturers struggle for the proper management of working capital. If the code is cracked for smart management of working capital, then you will find great competitive benefit. Proper resource management will permit you to accept larger orders without damaging other business areas.


Buying Is Just As Essential As Selling

Getting trapped with materials and inventory that one doesn’t require is not fun actually. Modest projections, proper planning, and strong negotiations should works together while the management of inventory and raw materials. Limit the inventory which is not going good by following conservative approach towards the required materials and goods one need keep in hand. Small business owners always make sure that they have sufficient cash for not just starting business but also keep it going.
Also, you can also cover your business requirement with the help of personal funds by potentially harming your wallet. They constantly look for new and advanced methods for growing his start up business and therefore they don’t look towards working capital loan. The most efficient method for growing his business successfully as well as generating capital is by securing working capital along with loan or line of credit. Through this method growing your working capital will definitely secure your small business venture during the sluggish months, making sure that you might cover up your operating cost of everyday like receivables, payables, and payroll.

Additionally, in unavoidable circumstances, it will help in mitigating your cash reserves for doing business expenditure.  The requirement of available financing solutions for covering immediate and short-term business needs is known as working capital. For determining available working capital just sum up your bank money along with your cash customers owe you plus your inventory value and subtract this sum from the money you owe to suppliers as well as employees.  You must borrow the required amount for the right purpose what you have. Banks loans are the traditional assumption as they don’t offer loan for small businesses.


 But the fact is that there are plenty of funding options and even if one has well-developed business as well as strong credit. Not receiving a business loan as the business venture is too small. It has been found that the total matters a lot when one applies for loan if they are too small or too big. Because in the case of business loans, size matters a lot when applying in the bank but the lenders don’t look the business size rather they prefer looking at your ability to pay back to them.

Moreover, working capital specifically for small business venture is quite tough to manage with limited personnel.  If one finds crunch then rather cutting payroll or dumping inventory, he should consider the consequences of any adjustments or changes on the other side of business venture. If one finds himself making rash business decisions in context of low working capital, one might interrupt several other business areas. Discarding inventory might slow down future sales in case getting rid of stuff which is not right as it may affect your vendor approvals which will further interrupt your business supply chain. 


Alcor M&A is a leading advisory firm providing financial services with an emphasis on customized solutions in the areas of M&A advisoryJoint Venture AdvisoryFinancial Advisory,  Private Equity,  Debt Financing  and International Business Development. These services leverages insights, relationships and a culture that emphasizes a strong orientation towards excellence.

For additional information on how ALCOR MNA can help you Grow your Company, Complete the Enquiry form One of our representatives will contact you within one business day.  



Tuesday 26 September 2017

Choosing the Right M&A Advisor for Your Deal



Every business venture whether big or small goes through several phases such as establishment, maturity, growth, decline, and rebirth as well. It may also happen that while taking up the innovation challenges as well as decisions, it might happen that something goes wrong leading to the loss of business. At the time when such a situation arises, Merger & Acquisition takes place that helps the drowning organization to re-establish again with new policies and strategies. For an organization which is very small, the merger is the better way for overcoming the problem as well as matching with larger organizations.


When Should A Small Business Company Consider M&A?

·         There might be many situations leading to acquisition
·         To augment the business turnover
·         Growing the market share in comparison with the competitor
·         Corporate restructuring for overcoming debt as well as brings new shareholders

Challenges to Find an M&A Advisory Firms

Several small business organizations find it quite hard in hiring Merger & Acquisition advisory group as the deal value is meager due to which commission is little too. Moreover, such kinds of organizations search for regional business partners and consulting group deal with foreign agencies for better payments. This undoubtedly results into the search of well-known or leading advisory firms which might help in doing a better deal.

How M&A Advisory Firms Help Small Business?

Certainly, organizations with excellent reviews have a subtle knowledge of merger & acquisition and how the deal might take place. Checking out reviews of Generational Equity where one can find out the ways of assisting organizations with their proper expertise as well as find out appropriate opportunities. The advisory firms’ help support in:

·         Recognizing the business partners matching the company’s expectation. The advisory firms are  using network as well as ensuring appropriate promotions for the same
·         Deploying professional services including financial and legal services
·         Value the business venture unit and the financials for the same company for finding relevant partner
·         Structuring the financial transactions in the context of payments as well as agreement process


What to Check-in M&A Advisory Firm?

·         Before the advisory firm is finalized, it is essential to research information about an organization and the experience of company
·         Going global as well as exploring suitable options of clients and reputation they have searched for merging
·         Executing SWOT (strengths, weaknesses, opportunities, and threats) analysis of the merger agreement and comes up with practical values for it too before approaching the advisory firm
·         Checking if consulting firms have expertise on the product line, execution of the deals, regions, and service line.
·         The price of the advisory firm is quite essential to consider. Most of the advisory firms give their payments regarding registration, monthly retainer fee, as well as sign-up fee
Moreover, advisory firms are accessible for smaller as well as larger businesses. So it is essential to assess the relevant aspects of right deal and service. It is advised to go for that advisory firm which extends beyond the agreement such as featured plans for a longer period and structuring the large companies integration.

Alcor M&A is a leading advisory firm providing financial services with an emphasis on customized solutions in the areas of M&A advisoryJoint Venture AdvisoryFinancial Advisory,  Private Equity, Debt Financing  and International Business Development. These services leverages insights, relationships and a culture that emphasizes a strong orientation towards excellence.

For additional information on how ALCOR MNA can help you Grow your Company, Complete the Enquiry form One of our representatives will contact you within one business day.  



                                                                     
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Monday 25 September 2017

Setting Up a Joint Venture


Currently, World’s economy is growing very fast. But for the first time, stepping in any country the most preferable form is the Joint Venture for setting up a business entity. Also, in case the business and legal environment is not known, it is advised to form a Joint Venture. A Joint Venture is joint agreements among two or more parties come together and form business or contractual relationship for executing specific business model. There are two types of Joint Ventures: Contractual Joint Venture and Equity Based Joint Venture.

Contractual Joint Venture

Wherein two or more individual or companies comes together and forms an agreement/contract for working jointly but no individual entity is build for executing the business contract. The main features of contractual joint ventures are described below:
·         Two or more organizations comes together into an agreement with a similar intention of project execution
·         Each organization or individual brings its own roles, shares and responsibilities are accordingly decided to depending upon each one’s field of expertise


Equity Based Joint Venture

In this an individual legal entity is formed which is owned by two or more individuals who are working jointly with a similar intention.  And also decides to equally participate in the equity of entity that is newly formed. This newly incorporated entity may be in the form of LLP, Partnership firm, Company etc. In general, in this type of joint venture, the benefits as well as losses of entity that is owned together are distributed among the all the individuals or parties based on the capital ratio contributions made by them. The key features of equity-based joint ventures are as follows:
·         Shared rights by the individuals/companies involved
·         Shared management of together owned entity
·         Shared benefits and losses based on the agreement

Benefits of a Joint Venture

Two or more individual’s ownership in an organization and each and every person contribute different aspects having long-term profits in their mind. Fundamentally, everyone has found it essential to have a business partner. Likewise, in the US, business partnerships must be done legally along with proper government documentation. This process includes registration and building of a partnership agreement, describing business objectives, responsibilities, and legal liabilities of an individual. Often, business associates always want to be exposed themselves with the liabilities and risks associated with an unlimited general partnership. A limited partnership agreement might mitigate such kind of issues. Also, in limited partner’s case, both individual don’t have same no. of control over a business practices, and also don't have same level of debt exposure of the business. The specific rights along with business responsibilities of these partners should be laid out in the agreement of partnership. However, the business formation laws having limited partnerships, varies state to state.


Joint Venture- A Good Fit for Successful Business

Joint ventures combine two or more separate business entities for undergoing on a business idea or specific project with mutual decision for successful functioning of both the businesses. In this way, both the entities only give their daily business operations rather giving whole control over their business. Both the business entities continue to function independent of each other, except the specific idea or project they have decided to run together. Every member does capital investments and put their resources, and takes the risk involved in that process. On the whole, a partnership which is in general form couples two or more persons in a permanent business relationship. In this venture, there is no operation or functioning separation neither there is any kind of limitations on the any activities or projects taken together to work for.


Alcor M&A is a leading advisory firm providing financial services with an emphasis on customized solutions in the areas of M&A advisoryJoint Venture AdvisoryFinancial Advisory,  Private Equity, Debt Financing  and International Business Development. These services leverages insights, relationships and a culture that emphasizes a strong orientation towards excellence.

For additional information on how ALCOR MNA can help you Grow your Company, Complete the Enquiry form One of our representatives will contact you within one business day.  


                                                                     
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Thursday 21 September 2017

Funding Through Equity or Debt Financing


There are numerous funding alternatives to consider for an entrepreneur; and it is essential to understand how to fund your startup business venture that might have main consequences. As your small business venture will require an extra working capital for executing development project and you must either seek funding from investors or rather take out a business loan.

Which Is The Better Option – Debt Or Equity?

Debt financing involves borrowing capital from a lender which you have to pay back with the interest to the person from whom it has been borrowed. And if in case, you have taken loan, then that means you have financed something along with debt.  Supported with the business loan, you are controlling that extra working capital gets spent. In several cases, few lenders some impose few restrictions, what you are actually financing is totally up to you. Debt financing can be considered flexible. There are various business loan type based on how that much amount of money one will get and how much time it will take to do repayments. Meanwhile, based on your financials and credit score, it can be quite tough for you to qualify for the type of loan you want. And in case, if you are not able to repay the loan, then the lender might seize all the assets of your business.


Equity financing involves trading your business ownership to venture capitalist or angel investors, in return for their working capital. Especially, equity is quite essential for several industries and startup businesses such as technology start-ups and organizations with international aspirations. You do not have to repay interest on working capital raised by you, so there is no requirement for putting your startup business profit benefits into repaying debt. This means that you have more funds available for growing your startup business. It's also in need to understand the rates that are associated with while choosing other source of fund lender. Entrepreneurs mainly focus on upcoming potential rather than present state of their manufactured goods, while investors focus on the capital required for ensuring future productivity. Therefore, startup business owners are similar to overestimate their organization while certain investors are mainly due to undervalue it. Startup valuation is quite complex than evaluating your no. to those investors having potential growth.


Running the company smoothly having all the control and as well as lean shows the investor you have sound judgment and worthy of investment. Angel investors find interest in the next generation ideas and willingly fund startup ideas they find worth. They usually focus on technology startups. Apart from providing money, angel investors also give guidance to that business owner looking for more experienced partners. They might also anticipate a certain degree of influence on how the company is running. For the majority of entrepreneurs, maintaining and building local customer base is the first step towards success. Once this goal is achieved, few business owners think that they are ready for the next step i.e. expanding globally. It is an impressive feat to become a global company, as not every business that sets out to do that achieves the goal. In order to convert your business successfully from domestic to international, one needs a new set of factors to consider.

Moreover, as a founder your main goal should be growing more and more professional network. At the time of need for funding, you never know who might be next funding opportunity or source. Also, some investors can be a public figure who can be reached online. Several other investors mainly anonymity and it’s quite hard to search for any kind of information about them.

Alcor M&A is a leading advisory firm providing financial services with an emphasis on customized solutions in the areas of M&A advisoryJoint Venture AdvisoryFinancial Advisory,  Private Equity, Debt Financing  and International Business Development. These services leverages insights, relationships and a culture that emphasizes a strong orientation towards excellence.

For additional information on how ALCOR MNA can help you Grow your Company, Complete the Enquiry form One of our representatives will contact you within one business day.  



                                                                       
                                                                http://www.alcormna.com

Tuesday 19 September 2017

Planning Successful Cross-Border Mergers and Acquisitions


Typically Merger &Acquisitions’ are used by companies’ for implementing value added strategies so that they can prosper and grow. M&A works off set notions of value that needs plenty of planning, negotiation, and capital investment for pulling it off. Cross-border mergers and acquisitions that are successful needs to be planned properly rather being scary. The biggest advantage with Merger &Acquisitions is that it gives full control to the owner on the value chain owned by them. Alliances are proved to be a viable alternative to Merger &Acquisitions. They proffer less risk but the game rules needs to be clear. Merger &Acquisitions have ownership control which lacks behind in alliances. But there are plenty of risks associated with investment in M&A.


Understand Foreign Markets and Targets

The advantage of global expansion of your startup venture consists of escalated sales, increasing profits and growing enhancement in improving competitiveness. Becoming global might help in business reduction depending on the profits of domestic markets. The possible downsides of this international market development comprises of several risks such as legal, financial, cultural as well as possible escalated prices before a business venture starts making successful with some profits. Expanding your business in global market means:

·         finding the right target
·         integrating your businesses the right way
·         executing the right transaction

 Any kind of deals related with cross-border represents escalated risks for all those who have stakes in that particular organization and such kind of risks require carefully consideration and further moved to the planning stage including targets and thesis of an organization. Having the experience of domestic market does not essentially mean that they understand how the business venture is operating in the global emerging markets. There is a possibility that foreign markets might use various set of strategies for reflecting conditions in their own regions and markets including language laws, engineering standards, cultural influences, buyer preferences, or product regulations.

Are you looking for a Financing Options? Complete the Enquiry Form! 

Also, it is quite essential for organizations in choosing M&A targets which is matching their goals of market growth, and this can be achieved via specific strategy that is being reinforced with the process of thorough screening of targets, focusing on due diligence as well as detailed planning for integration. It is quite important that an organization should have clear strategy and vision behind its expansion in the international market.  The analysis and due diligence which is needed will make it quite simple for finding right target for M&A in global market that will match the profile of the company which is buying and can be integrated successfully. It is very common to relate that organizations are bringing self-governing advisors for supporting several activities of M&A at this stage or earlier this, as such kind of advisors is actually not associated with success of the deal  which can help in providing expertise throughout the whole process of M&A.

Moreover, in the long run, unsuccessful merger integration might prove problematic, so it is better to take certain steps prior in the process for avoiding any kind of risks associated with M&A. By carrying outing suitable tax, financial, legal due diligence and properly qualifying as well as identifying integration risks, an organization will get prepared for while doing operations that will become completely functional, and may also start reaping successful rewards of a profitable merger.


Alcor M&A is a leading advisory firm providing financial services with an emphasis on customized solutions in the areas of M&A advisoryJoint Venture AdvisoryFinancial Advisory,  Private Equity,  Debt Financing  and International Business Development. These services leverages insights, relationships and a culture that emphasizes a strong orientation towards excellence.


For additional information on how ALCOR MNA can help you Grow your Company, Complete the Enquiry form One of our representatives will contact you within one business day.  



                                                                        
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Monday 18 September 2017

Private Equity’s New Focus


Many entrepreneurs have predicted that large buyouts financing might become quite difficult in a short period of time and if there is increasing interest rates low debt dries up. And it has become harder for private equity firms in order to cash out of their capital investments in taking them in public; it gives present volume of financing buyouts, the no. of huge IPOs might strain the market stocks ability in order to take up new issues in the coming years.

Even if the present investment in private equity wave withdraws, though the discrete benefits of the buy-to-sell strategy and sessions it proffers public organizations will remain the same. For single thing as all the businesses in the portfolio of private equity will be sold soon, they stay in the spotlight as well as for performing under constant pressure.


In contrast, a business organization unit that will be a public organization’s portfolio for short time period and is performing adequately, if not enormously, generally does not get attention priority payment from senior management. Additionally, because each investment which is made through private equity funding in large business will liquidated within the fund life, it is likely to accurately calculate cash returns on several capital investments. That makes it quite simple to create inducements for finance managers as well as for the executives running the big businesses which are being directly linked to cash value which is being received by investors that are funding the business. In a public organization, there is no case with corporate managers and not even with business unit managers.

Furthermore, for setting up your startup business venture, something new and creative can be imported by your brain. It may be like you want launch a new type of business or to start your career. Whatever the scenario is, money controls all over the system as it is the back bone in keeping your startup business grow and maintaining pace in the e global competitive market. Hence, capital can be considered as the main fuel for any business. Actually, fund raising mainly depends on the type as well as the nature of business one is going to set up.


But, it totally depends on how much cash you need for your business. In case you require very small amount then you may invest. Or else you can ask your friends, family members, or other acquaintances for financial help. And then you don’t have to hover here and there to collect cash for your business. Hence, one would be benefited by less effort to raise cost and save time as well. You should have proper planning, if you are stuck with your startup business. And it must be done prior establishing your startup business. This can be achieved by concentrating on your savings variously. It can be done by cutting off your expenses on daily basis such as house maintenance, groceries, or other household matters.

Understand and accept the working capital amount, your business require for operating. If too much product is manufactured, then it might end up sitting on shelves and will tying up cash flow also. Finally, the comparatively rapid turnover of big businesses needed by the maximum value funding by private equity firms that is gaining to know-how fast. Due to these decreased limitations, various investors have access to investment opportunities for business startup through private equity and several other funding platforms. Several funding platforms reduces the required amount of investments that are privately done and also permits new comers in navigating different deals which further help them in finding best fir option for their business venture.


Alcor M&A is a leading advisory firm providing financial services with an emphasis on customized solutions in the areas of 
M&A advisoryJoint Venture AdvisoryFinancial Advisory,  Private Equity,  Debt Financing   and International Business Development. These services leverages insights, relationships and a culture that emphasizes a strong orientation towards excellence.

For additional information on how ALCOR MNA can help you Grow your CompanyComplete the Enquiry form One of our representatives will contact you within one business day.  


                                                                      
                                                                http://www.alcormna.com