The role of an External Advisor

The role of an External Advisor can be related to celebrated Indian religious story of Ramayana and one of the incident of drawing a “Lakshman Rekha”. While Sita is the Entrepreneur here and advisor is Lakshman. Where an advisor can suggest a action plan that can work as a Lakshman-Rekha. It can protect Sita, the entrepreneur so long as she remains inside the boundaries. She is safe while following the advisory but may get into trouble if she ignores it. There is enough number of Ravans (Pitfalls) out there in business world.

The COVID-19 pandemic has brought about unprecedented disruption to global economies. Since the duration and severity of the current economic crisis remain unclear, businesses must survive this downturn so that they can thrive in the eventual recovery. Advisors and Consultants provide an experienced, outsider’s perspective and can help protect against downside risks while preserving upside optionality. Overall, you can’t predict, but you can prepare.

I already have a CFO?????

A Chief Financial Officer entails much more than knowledge of accounting. An ideal CFO assists management every step of the way from developing a budget to providing management with recommendations on improving profitability and cash flow to effectively negotiating with banks and investors to secure financing. Especially in periods of significant volatility, it is important to run multiple scenarios in parallel and develop a contingency plan for each, where an external financial advisor can be of immediate support.

External Advisors

Corporate finance advisors help to ensure the financial health of a company. They recognize that each company has a unique set of challenges from lack of accurate reporting to acquiring necessary funding to grow the company.

They assist in providing clarity and in making informed decisions and allowing the company to maximize its profitability and cash flow. They help to create meaningful reports, provide recommendations in terms of financial management, tax planning, and other compliance issues faced by the company.  The teams highly qualified personnel bring with them a diverse mix of accounting, financial, and management experience to assist you in helping your business reach its fullest potential.

Some Areas of Expertise Include:

  1. Assessment and recommendations on existing financial reporting policies and procedures
  2. Customization of accounting and reporting systems to accomplish client goals such as: divisional reporting, costing and non-financial metrics having financial implications.
  3. Regular meetings with senior management to review the financial reports and discuss practical solutions to improve financial performance
  4. Assistance in securing short-term and long-term funding
  5. Assistance in corporate tax planning
  6. Provide other support as agreed upon in the engagement letter.

The challenges of this crisis could include liquidity, supplier management, funding, collections and other stake holder management.

We as Advisors will not only provide you the relevant reports but will meet with you regularly to discuss the results and provide you practical solutions aimed at turning your financial goals into a reality.

We Always Work As a Team. 

We completely understand your efforts to stay within your budget and allow your employees to work with us. We also strive to uncover ways to reduce the administrative burden on management so they can focus on the company’s development.
Sometimes as advisors we provide a full-time member of the team supervised closely; to whom the client will have direct access to at all times – The financial wellness is our responsibility as an advisor.

 Specific projects and tasks will be detailed, with agreed-upon procedures, target dates and documentation deliverables established in the Engagement Letter. Certain components of the deliverables may be delegated to firm team members, as appropriate to the specific project or task. Hence based on agreed upon terms based on comfort of both parties.

To sum up – Prepare, Prepare and Prepare

Consultants benefit their clients by bringing relevant experience in crisis management, practical insights for risk assessment, best practices in implementing rapid change, and proven ability to clear intertwined financial, operational, and legal issues.

Taking proactive steps now will prepare for managing emergencies later. Delaying action will inevitably increase your company’s risks, transform small problems into large issues, and may result in a challenge that could have been prevented.

It is hence understood that while we cannot predict the ultimate effect of an unexpected crisis, you can take deliberate steps to prepare for downside scenarios. An exceptional advisor is one who can both empathize with a range of stakeholders but also negotiate efficiently to manage their clients’ best interests.

Taking inspiration of another story from Ramayana, The Bear King Jambavat was instrumental in guiding Lord Rama, Hanuman in critical times to ensure their victory. When Hanuman was wondering whether he could cross the ocean, he reminded of his powers in a timely manner and led Hanuman reach his potential. Similarly, an External trusted advisor with relevant expertise would be an ideal support for an Entrepreneur to reach his fullest potential.

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