Raising Capital and Financial Modelling

Watch our video to discover how Specialist Accounting Solutions can support your business in an Advisory capacity. We work with businesses who are looking to raise between £250,000 and £5m.  Talk to us about your financial forecasts, funding documentation requirements, financial models, business plans and more.

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The Accountant’s Accountant / FD Support

SAS supports Finance Directors of business up to £80m. Our role typically encompasses supporting FDs in areas requiring specialist expertise: financial modelling, raising debt, business valuations and M&A work.

We have assisted FDs in reaching out to debt funders through our extensive network of contacts in the funding community. This applies in particular where the existing bankers are either unhelpful or slow (both) and alternative funding routes need to be explored quickly and effectively.

We also advise on internal reporting to the Board of Directors, such as the level of detail, KPIs and commentary required. Internal reporting, especially at divisional level, can be both sensitive (as it is often linked to performance) and hard to judge (e.g. what level of detail is required in the report?) – having an independent trusted adviser with financial expertise is hugely beneficial to our clients.

SAS also assist in reporting to funders: Our key objective is to provide as much information as needed, without providing any unnecessary detail. We perform covenant testing and give pre-emptive warnings if these are not met. We devise report templates to submit to funders and assist in dealing with them when trading or performance of the business is challenging and covenants are not met.

Financial Modelling

Financial modelling

Financial Models (also known as Financial Forecasts) are forward looking, giving a financial picture of a company’s future Revenues and Profits. A simple financial model will typically just comprise a forecast Profit and Loss or Cash Flow. We go beyond this and prepare Integrated Financial Models, which include:

  • Profit and Loss / Cash Flows / Balance Sheets
  • Key Performance Indicators (e.g. Gross Profit %, Net Profit %, Debtor Days)

We also prepare bespoke financial analysis of Financial Data, ranging from job or divisional profitability, to cash flow forecasts.

Our Proven Process

We have prepared dozens of Financial Models for our clients and have a process that works every time. We show this process here.

When are Financial Models used?

Financials Model are used in a variety of scenarios, but there are typically four:

Raising Equity / Debt A company is seeking to raise funds from potential investors (e.g. to raise equity) and / or potential funders (e.g. to raise bank debt). The investors / funders will require a Financial Model to give them a clear picture how much funding is required and when these funds will be deployed.

Business Plans Management Teams preparing a robust and business plan often want this to be underpinned by a Financial Model, so they have a clear picture what the Business will look like from a financial perspective going forward.

Business Disposals / Acquisitions It is a standard for Business Advisers to prepare a Financial Model as part of a company’s sale mandate. Acquirers expect this level of detail as part of the sales document (known as an Information Memorandum).

Financial Analysis Finance Departments are busy and often do not have the time to prepare detailed financial analysis of key financial data. We work closely with your finance staff to establish a clear picture of what is required and then deliver this service.

Business valuations

We have prepared dozens of business valuations over the years, acting for Shareholders, Management Teams, Investors and Funders.
There are a multitude of scenarios why a Business Valuation is required, such as:

  • ​Proceeding with an acquisition
  • Selling a business (or division)
  • Selling your business to the employees using and Employee Ownership Trust (EOT)
  • Resolving shareholder disputes
  • Agreeing a value as part of divorce proceedings
  • We provide a comprehensive valuation report detailing our: Valuation Methodologies
  • Assumptions
  • Conclusions
  • Workings.

​Similar to our Financial Modelling offering, we have a Proven Process that delivers results every time. To find out a bit about the way we work watch our video.

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Raising capital

We help Businesses raise funds and can support Management Teams at any stage in the Fundraising process.

Documentation We will focus on all matters financial in your Business Plan. For instance, we often augment existing Business Plans with a detailed set of Financial Forecasts, so the numbers stack up. We can also add financial commentary to your plan if required.

Identifying Potential Funders Our contacts and research capabilities will enable to identify suitable Funders. We will tailor our search around your requirements. We will present our findings to you and will agree a list of Funders to approach.

Marketing to Funders and Obtaining Offers We support Management Teams in approaching, corresponding and negotiating with potential Funders.

Legals and Due Diligence We are often asked for input on the legal documentations and add value by ensuring that any references to financial or numerical matters are dealt with properly in the documents. We can also oversee the financial due diligence process and ensure the right level of information is provided in a timely manner.

Find out more about what Funders are looking for and the Key Features of a Business Plan.

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Acquisitions and disposals

We advise on acquisitions and disposals of transactions where a buyer or an acquisition target has been identified and you need support to get the transaction done.

Our can encompass a wide variety of work,  such as:

  • Valuing the business being sold/acquired
  • Drafting and agreeing Heads of Terms with the other party
  • Liaising with key parties (lawyers, bankers, buyer/seller)
  • Project Managing the transaction to completion (Deal Management)
  • Set up a data room to share information with other parties
  • We can also prepare the figures in advance of a financial due diligence review process

For a detailed guide to business disposals click here

Financial reviews and reports

SAS has extensive experience in preparing financial reviews for investors and shareholders. We take a commercial, analytical and forward-looking approach to our work and have extensive experience in reviewing distressed business, which require or appear to require turnaround strategy.

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