Business Succession Planning

There are many issues to be considered when transferring a business to the next generation of leadership.  Whether you are transferring your business to family heirs, key employees or positioning the company for sale, a strategy must be designed, implemented and executed to ensure a smooth transition. RAL Forensics has worked with businesses of all sizes, from closely-held businesses to large corporations assisting clients in planning, developing and executing their succession plan or exit strategy. Our business succession planning capabilities include the ability to provide assistance in the following areas:

  • Estate planning
  • Business valuation
  • Buy/sell agreements
  • Management skills assessment
  • Advisory services throughout the business succession process

 

 



 

Cash Flow Management

Maintaining an adequate cash balance to operate a business can be a daunting task.  The primary tool needed to properly manage cash flow is a cash flow projection.  Sources and uses of cash can be projected for short-term cash needs, long-term cash requirements, or both.   Our cash flow management services include the ability to provide assistance in the following areas:

  • Cash flow projections
  • Analyzing need for loans / lines of credit
  • Optimization of cash collections
  • Design and implementation of effective collection policies
  • Management of accounts payable to maximize purchase discounts
  • Strategies to maximize benefits of excess cash balances

 

 



 

Internal Control Design and Implementation

It is imperative that adequate internal controls are in place to safeguard a company’s assets.  At times, it is beneficial to have an outside third party evaluate the efficiency and effectiveness of operating procedures.  Recommendations are then made to improve internal controls with the ultimate objective of making the company more profitable by correcting any inefficient or ineffective operating controls and/or procedures that may be identified. Our internal control design and implementation services include the ability to provide assistance in the following areas:

  • Evaluate current internal controls to identify potential areas for improvement
  • Ensure that proper segregation of incompatible duties are in place to minimize opportunities for improper activity
  • Determine if there is an adequate level of management oversight involved in the reconciliation and review process
  • Secure assets that are highly subject to misappropriation (cash, inventory, etc.) through physical and operational controls
  • Provide employees and management with training to ensure that the internal control system is properly implemented and continuously reviewed and analyzed
  • Document internal control system and related policies and procedures in a written manual for reference by current and future employees of the business
  • Periodically review operations and internal controls to ensure that the results are consistent with the defined goals and objectives of the organization

 

 



 

New Business Formation

Opening a new business can be a very exciting process that also comes with a high degree of risk and uncertainty.  To ensure that the new business has the highest probability of success, it is imperative to develop a strategy in the early stages of the business formation process.  There are many common pitfalls that should be addressed to minimize the risk of failure and maximize the chances for success. Our new business formation services include the ability to provide assistance in the following areas:

  • Assist in identifying and providing referral sources for legal representation services, insurance, employee benefits, banking, etc.
  • Provide assistance in determining the proper type of legal entity to be formed to maximize income tax benefits
  • Assist in ensuring that the business owner(s) get the proper legal documents in place, such as articles of organization/incorporation, operating agreements, buy/sell agreements, etc.
  • Assist in obtaining all required occupational licenses, permits, tax ID numbers, etc.
  • Prepare an initial business plan to identify the overall goals and objectives
  • Determine capital needs and evaluate the most favorable capital structure
  • Analysis of accounting and operational software packages to help identify the product that best fits your needs
  • Establish operating procedures to ensure effective and efficient processes are in place for cash management, accounts receivable, accounts payable, purchasing, etc.
  • Assist in evaluating insurance needs and provide referrals to qualified insurance advisor(s)

 

 



 

Outsourced CFO / Controllership Services

Maintaining a full-time finance and accounting department can prove to be costly and time consuming; however, all businesses need such departments to conduct business operations.  Whether you are a growing business that is in need of professional financial advice, but you are not yet ready to hire a full-time CFO or your business has an interim need for CFO services, we are able to meet those needs. RAL Forensics has extensive experience in providing high level accounting and financial advisory services to both large and small companies.  Our outsourced CFO / Controllership services include the ability to provide assistance in the following areas:

  • Provide a readily available sounding board to help analyze the pros and cons of complex business decisions
  • Establish some degree of business continuity in the finance and accounting area until the business is able to support a full-time CFO / Controller
  • Train and manage accounting staff
  • Provide high-level review services for internally-prepared accounting records to ensure that accounting processes are efficient, effective, and provide accurate financial data
  • Assist in identifying and providing referral sources for legal representation services, insurance, employee benefits, banking, etc.
  • Debt restructuring
  • Analysis of insurance coverage in force and determination of the adequacy of such coverage

 

 



 

Strategic Business Planning

The financial marketplace is constantly changing and evolving.  In order to continue to operate a successful business, you must always be evaluating the market conditions and be able to make necessary strategic operating decisions in a rapid manner.  RAL Forensics provides assistance in addressing business planning strategies by identifying specific and measurable goals early on in the process. Our strategic business planning services include the ability to provide assistance in the following areas:

  • Analyze the costs and benefits of starting a new business venture, introducing a new product line or service, buying an existing business or product line, etc.
  • Negotiate terms of debt with bankers and/or other lenders to ensure that the most favorable terms are obtained, which is not always the loan package with the lowest interest rate
  • Assist in the development of financial plans to analyze start-up costs, operating costs, revenues, expenses, profits and break-even analysis to optimize the chances for success
  • Identification of target customers, industries, etc.
  • Develop staffing models to assist with projecting personnel costs
  • Identify capital needs to ensure that the proper amount of equipment and working capital is on hand prior to commencing business operations
  • Conduct regular meetings with management personnel to ensure that the strategic plan is being adhered to and constantly evaluated to determine if any modifications are needed
  • Establish industry benchmarking metrics to analyze your operations in comparison to peers in similar industries
  • Assist in identifying and providing referral sources for legal representation services, insurance products, employee benefits, banking, etc.

 

 



 

Transaction Advisory Services / Due Diligence (M&A)

Buying or selling a business is becoming more common in the current financial marketplace for numerous reasons.  A multi-faceted strategy must be developed to ensure that expectations are properly managed and that the desired result is achieved.  It is often beneficial to engage a transaction advisory consultant early on in the process to get an unbiased opinion of the overall situation. Too often, business owners get emotionally involved in the process resulting in an inability to focus on the end result. Our transaction advisory services include the ability to provide assistance in the following areas:

  • Due diligence (buyer-side and seller-side)
  • Business valuation analysis
  • Analysis of business segments for spin-off purposes
  • Structure of transaction
  • Analysis of terms of transaction

 

 



 

Turnaround and Corporate Renewal

Timing is critical in the successful turnaround of a business enterprise.  Once a business determines that the only options are liquidation or bankruptcy, it is often too late to initiate turnaround management efforts.  There are warning signs and red flags that typically appear well in advance of a business failure.  Early identification of the warning signs and the rapid implementation of a turnaround plan are critical to the survival of the business. Our turnaround and corporate renewal services include the ability to provide assistance in the following areas:

  • Cost analysis
  • Analysis of working capital needs
  • Cash flow modeling and projections / Cash flow management
  • Debt restructuring
  • Negotiate payment plans with vendors
  • Provide interim CFO support