EFM works with a full range of SME businesses, offering financial management services and business advice, supporting them to grow and maximise value. However, what many don’t realise is that we also have an extensive background in working with investors, such as angels, venture capital firms, debt providers and their portfolio companies.
When someone invests in another business, they want to ensure they will get a return on their money. For that to happen, they need comprehensive insight into the company’s finances and for these to be managed properly going forward. EFM supports investors by providing support at all stages of the process, from pre- to post-investment.
We often work with investors at the pre-investment stage, so they can be sure they are making a sound investment. The first step we take is to ensure we prepare the target company for the investment. For example, we can look at the financial model and provide an investor with all the data and information they need to carry out a sensitivity analysis and also undertake a financial analysis too.
Sometimes, an investee’s resources are stretched and therefore the target company may need support in getting prepared. Again, this is something EFM can do, providing the support required in areas such as management information and data. We are also able to assess and comment on the operations of a targeted company, evaluating the existing finance team’s skills and systems, and reporting any potential issues or short fallings.
Essentially, EFM allows investors to do their financial due diligence. This can range from an entire project to a targeted task in an area where the investor requires more specific details.
But EFM’s work with investors doesn’t stop once the investment is made. We continue to offer support to ensure the business they have invested in can grow and thrive. If we have identified any shortcomings during the pre-investment stage, then we can help implement the necessary changes.
Investors also want to know that the companies within their portfolio have proper financial management in place. This is where EFM can offer flexible support that meets the needs of the business, such as part-time ongoing financial management, or alternatively, an interim bridge while the company recruits.
Sometimes, an investor requires us to deliver on projects to ensure proper financial management of the business. This could involve developing new management information, implementing finance systems, or managing cash flow. We can, of course, also help prepare completion accounts.
When investors work with EFM post-investment, they get peace of mind knowing that the financial management of the company will be effective and the investment worthwhile.
We can do as little or as much as required, and indeed often remain involved with the company longer-term to ensure the investment continues to be a good one. Over time, as the investment in business expands, old systems can be outgrown and EFM can support the implementation of new systems and other improvements.
EFM can also support staff in the invested company. For example, we can cover any skills gaps or plug absences, which can avoid problems occurring further down the line. We have also mentored junior staff within a business as they grow into more senior roles. Often, it may be appropriate for us to take on more of a non-executive director role within the company to ensure continued success through financial management, compliance and governance.
As an external and independent party, we are well positioned to identify any problems, investigate reasons for non-performance and spot any deviations from the plan, quickly and decisively. This provides an extra layer of support and protection for the investor.
With the right investment and financial management, the level of growth investees achieve means there are times when they make their own acquisitions. In this scenario, we are then also on hand to provide the additional resources and bandwidth they require.
Supporting long-term growth
At EFM, we believe in providing long-term support to investors and their portfolio, so they see maximum returns on their investments.
If you are interested in finding out more about our services and how we can support you, book your one-to-one consultation here or call us on 01582 516300.