What do we mean with corporate Financial Analysis and how is it realized?
The Financial Analysis is a core document for a business and even more important for a Startup. If done properly, it allows to get information which can help businesses improve their profitability, cash flow and overall value. Here’s why it is so important to choose an expert and efficient partner such as JEME
One of the most useful documents for documents for entrepeneurs and most requested by banks and possible investors is the l’Economic-Financial Analysis of the firm, which is an economic feasibility study in a few years span. The crafting of the document requires an in-depth knowledge of corporate strategy, accounting and corporate evaluation, that’s why it is one of the most important and complex document to redact. JEME is able to provide its clients with a high-quality service, unifying a rigorous method, strategic knowledge and cutting-edge corporate evaluation methods, learned during the Bocconi’s academic courses.
What does Financial Analysis mean?
By Corporate Financial Analysis, both investors and entrepreneurs refer to a document which includes economical and financial predictions of the firm in question. This document, with its relative indexes, aims at evaluating the potentiality and the profitability of a business, in such a way to evaluate its feasibility. profitability of a business , in such a way to evaluate its feasibility..
JEME first helps entrepreneurs to understand the first costs and the long term feasibility of a project, then to foresee the financial demand of the business to realize it in the most effective way.
How is a Financial Analysis made?
Every Economic-Financial Analysis is different and the method of realization may change based on the type of firm and on the requests of the investor himself. Usually the Financial Analysis is made through a study and the consequent projections of the following documents
- Balance sheet
- Income statement
- Cash flow
Based on many macroeconomical variables, determined partly by a market analysis of the market segment in which the business operates and on the conditions of the general market and other variables specific of the firm (its business model and its market penetration), a financial projection is made, inclusive of its relative indexes, a 3 or 5 years, generally with the aim of understanding the net financial position of the business in the future. To realize a Financial Analysis it’s not, however, necessary to possess of the three aforementioned documents: in the case of a startup on its way of creation these documents might not be already redacted, thus it is necessary to proceed on assumptions formulated over the industry in which the firm operates .
Through the forecast results our team will, additionally, provide an analysis over the critical issues on the patrimonial structure, providing suggestions for a better management in order to control patrimonial indexes. To this it will be necessary to add an analysis on the financial requirements of the firm, so that the entrepreneur may have the necessary tools to face this necessity.
Writing a Financial Analysis has the advantage of significantly improving the relationship with banks, since it highlights which are the objectives and the financials necessities in the short and medium term, providing an image of the business projected to the future. The results of our work will be represented in a detailed report by our team, so that they may be shown directly and effectively to potential investors.
Our service may be directed to all the startups interested in identifying their structure in detail, and to those affirmed businesses which need restructuration, improving those critical issues which impact negatively the economical result of the firm. To JEME it is important to keep a relationship of cooperation with the client, since the analysis will be partly based on his perceptions and objectives; that’s why during the construction of the project the project manager will keep the client updated on the results obtained, so that it possible to keep aligned the output with the client’s expectations.
The complexity of a project of Financial Analysis depends on various elements. For a corporate reclassification sometimes 12 days can be enough, for a Startup without any kind of financial documentation the time lapse may be larger. In average it takes between 20 and 30 working days.
Why choose JEME?
JEME is able to provide this kind of service giving particular to care to the client’s needs, analysing in depth all the elements that impact directly or indirectly the profitability of a business idea. Thanks to such analysis our team is able to determine the feasibility and profitability of a project, highlighting the Break Even Point of a project.
JEME Bocconi Studenti is able to provide a service of a very competitive price/quality ratio compared to a traditional consultancy firm. One of the most successful Financial analysis (inserted in a Business Plan) was conducted for a Startup which operated in the hypercar industry, which successfully obtained financing from a venture capital fund to start its activity.
Contact us for a price quotation at +39 346 594 6356