EXTERNAL FINANCIAL DIRECTOR

Properly managing the resources of your business and having accurate and detailed information on the progress of it, are key elements to make it more competitive, to obtain greater performance and its survival.

PROFESSIONAL CONSULTING puts at your disposal a Financial Director, innovating in what until now was reserved for large companies and multinationals, adapting to their needs and providing the advantages that this service provides by providing it externally, either for a specific time or continued in time, or for a concrete project even though it is still under development.

Our goal is clear: Help you PROSPER.

And all this inasmuch as experience has enabled us to detect that many projects, even with products or services of great commercial interest, may be subject to their conclusion and / or liquidation by a poor financial structure.

For this we will make use of:

  • Treasury Management

    “Manage the generated resources”. Important task in any company is to manage their treasury. Its purpose is to ensure that the necessary funds are available in the right place, in the right currency and at the right time, by maintaining appropriate relationships with the corresponding entities, seeking to minimize the retained funds in circulation through the functional control of clients and suppliers and collection and payment circuits, making the idle funds profitable and minimizing the cost of external funds, all with a known and accepted level of risk.

  • Management control

    “Evaluate your performance”. Control is that function that seeks to ensure the achievement of goals and pre-defined plans. Management control is the function by which management ensures that resources are obtained and used effectively and efficiently for the achievement of the organization’s objectives. Its purpose is to govern the organization so that selected strategies are developed to reach the preset objectives. It is fundamental for this that the management control contemplates the whole company, otherwise we could reach inaccurate conclusions that lead us to make wrong decisions.

  • Budgetary System

    “Plan according to your goals, control and take action”. The implementation of a strategic plan or long-term plan requires its implementation in annual plans that detail the short term, this is the budget. In order for a budget to be useful, it must avoid the extrapolation of the past and base it on the objectives of the company, which must, of course, combine the resources of the company with its aspirations. The budget will help you to:

    i. Formulate detailed plans of the company’s strategic plan. Its elaboration obliges to formalize and concretise ideas thinking about the future, with its threats and opportunities, and to prepare to face them.

    ii. It is a means to coordinate the actions and decision making since they are the concretion of the objectives of the company in the short term.

    iii. It is a mechanism of control of the management of the different activities of the company.

  • Financial analysis

    It helps to understand the operation of the business and to maximize profitability from acting on existing resources. The financial analysis allows to make a diagnosis of the current financial situation of the company through the study that is done of the accounting information, through the use of indicators, that is to say to respond. This visualization of the state of “health” in a certain moment of your company and on the analysis of its evolution and comparison with other companies of the sector will allow to anticipate possible financial problems of the company as well as to identify areas for improvement.

  • Professional dossiers to present to banks

    (Finances, renewals, etc.) The professional financial dossier is your business card to financial institutions, which in addition to presenting your company and project appears as a critical element to show the entity that you have sufficient capacity to pay your payments. Once you generate that trust in the entity you will be able to access it in better conditions.

  • Periodic report to analyze financial data

    It involves the delivery of reports drawn from your company’s information for analysis and decision-making. It can be accompanied by a meeting with our CFO or not according to your needs.

  • Organization of the economic area

    An update of the financial and administrative organization in search of greater efficiency. Our great experience in the administration of different companies and sectors allows us to identify inefficient processes in organizations and make proposals for improvement that exponentially increase the efficiency and effectiveness in your organization.

  • We develop expense plans and restructuring plans

    Restructuring must be understood as change and may be motivated by different circumstances such as ensuring long-term viability, improving the profitability or liquidity of the company. It affects the whole company and its main focus will depend on the particular circumstances of putting the focus on the cash, that is, optimizing the working capital and sale of strategic assets or on the other hand in the profits concentrating in activities of greater gross margin.

  • Implementation of a balanced scorecard adapted to your needs

    The Integral Balanced Scorecard (CMI) is a management tool that assists decision making in directives. It provides periodic information on the level of compliance with previously established objectives through indicators as well as being a dynamic concept that provides continuous support in decision making.

How we work:

  • Contact Initial: We listen and analyze your needs to create a work plan to your average. The services can be of a determined duration, or continued in the time (In the continuous services we do not ask our clients clause of permanence by a determined period).
  • Incorporation of the External Financial Director to his team: Once the plan we propose will be accepted, the External Financial Director will begin to provide services to achieve the objectives and with the dedication agreed upon. The billing will always adhere to the agreement.

INTERNAL AUDIT

Internal auditing is an independent and objective monitoring and consulting activity designed to add value and improve the operations of an organization. It helps an organization achieve its objectives by providing a systematic and disciplined approach to assessing and improving the effectiveness of risk management, control and governance processes.

Internal auditing is a catalyst for improving organizational governance, risk management and management controls, providing insight and recommendations based on analysis and evaluation of business data and processes. With a commitment to integrity and accountability, internal audit provides value to governing bodies and senior management as an objective source of independent advice. Professionals called internal auditors are employed by organizations to carry out the internal audit activity.

The scope of internal auditing within an organization is broad and can include issues such as organizational governance, risk management and management controls on: efficiency / effectiveness of operations (including asset protection), reliability financial and management information, and compliance with laws and regulations.

Internal auditing may also involve conducting proactive fraud audits to identify potentially fraudulent acts, engaging in fraud investigations under the direction of fraud investigation professionals, and conducting fraud investigations further investigation to identify control failures and establish the financial loss.

Its designation of internal auditors is thus used in contrast to external auditors whose activity is more focused on the revision of the financial statements confirming that these are a true picture of the financial situation of the company.

Functions of Internal Audit

The internal audit is mainly directed at the internal control evaluation, designed to provide reasonable assurance about the achievement of the basic objectives for which all companies strive, among others:

  • Effectiveness and efficiency of operations.
  • Reliability of financial and management information.
  • Compliance with laws and regulations.
  • Safeguarding assets

COMPETITION OF CREDITORS

What is the creditors’ contest?

The competition of creditors is a legal procedure designed to solve the problems of insolvency and lack of liquidity, a procedure that is pursued by a party that creditors can collect and, on the other, the search for solutions to achieve business continuity and avoid bankruptcy.

It may be applicable to a natural person, a self-employed person, or a legal person (regardless of their size and type of personality they maintain). The majority of competitions of creditors requested in Spain have been of companies, although taking an important boom the presentation by natural persons (natural persons, as defined at the moment).

It is therefore a system that helps in the event of insolvency to articulate an orderly mechanism to deal with debts, putting the matter in the hands of a Judge who will articulate it based on Law 22/2003, of July 9.

When to apply for the creditors’ competition?

The law is explicit when referring as insolvency to the inability to continue with the credit obligations, establishing the difference with what can be a “temporary bump”; that is to say, there must be a real economic difficulty.

Thus, the debtor is required to suffer a situation of insolvency that makes it impossible for him to fulfill his obligations regularly.

There are two types of request:

Voluntary request: when it is carried out by the natural person, a self-employed person or the responsible person of the society (in the case of companies), having knowledge of the possible or imminent insolvency situation.

Existe obligación de presentar la solicitud del concurso en un plazo máximo de dos meses.

Forced request: when a creditor or one of the partners of the company is not served by the requirement for that purpose, generally disagree with the management.

Time, mode and documents of the application

The application must be filed in a commercial court within two months after the date on which the insolvency has become aware of the insolvency, in writing and clarifying if the insolvency is real or imminent, providing (among others) the following documentation:

Declaration of legitimacy to present the contest.

Economic report of the debtor.

Inventory of goods and rights.

List of creditors in alphabetical order.

In case of prosperity and that the court approves the competition of creditors, it will be published in the BOE and from that moment the creditors will be able to present in the court the request and justification of the debts.

The judge will appoint a trustee, who may be a single person or a team of three, with experience and qualified as an attorney, economist or auditor, commercial title, or one of the creditors (exceptionally).

The 4 phases of the creditors’ competition

Although the law establishes more phases, in practice there are four stages of the competition of creditors that must be passed:

1. Previous acts

The previous acts are the actions that are carried out before the admission to process of the contest by judicial order (submission of the application, documentation, etc.). It is a phase as wide as complex in which the budgets of the declaration of the contest are discussed as the fundamentals of the procedure for the declaration of the contest.

2. Common Phase

This phase ranges from the order of admission to proceedings until the bankruptcy report is delivered.

The real starting point to work is to know the assets of the bankrupt and how much is owed to the creditor, which is the same, to determine the active and passive mass of the creditors.

3. Resolution phase

The law provides for two possible resolutions: the signing of an agreement (refinancing agreement), or liquidation.

4. Determination of liability

The law is tacit in this phase, which will only proceed if there is the opening of the liquidation or a breach of the agreement.
The determination of the contest as “fortuitous” or “guilty” will depend on whether there has been fault of the debtor or any of its legal representatives.

It is important to point out that in any case, and despite the bad image of business failure in Spain, it must be clear that it is commonplace in the business world and that in other countries it is considered a fundamental source of learning in order to succeed with a company.


COMPANY VALUATION

The need to value companies is increasingly necessary, mainly due to the increase in mergers and acquisitions in recent years.

The valuation of the company can be defined as the process by which the quantification of the elements that constitute the assets of a company, its activity, its potentiality or any other characteristic of the same that can be valued is sought.

The measurement of these elements is not simple, implying numerous technical difficulties.

When valuing a company, it is intended to determine a range of reasonable values within which the definitive value will be included. It is about determining the intrinsic value of a business and not its market value, nor of course its price. The value is not a fact but, due to its subjectivity, we could consider it as an opinion. It must start from the idea that value is only a possibility, while price is a reality. The greater differences between price and value are usually generated by the market relations between buyers and sellers.

In conclusion, we can point out that:

A valuation is an estimate of the value that will never lead to determining an exact and unique figure, but this will depend on the situation of the company, the time of the transaction and the method used.


 

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