Strategic Management Consulting
The Professional has two great advantages that make it possible to design new consulting services for businesses. First, he has continuous visibility on the company's updated accounting data and therefore knows its economic and financial dynamics well. Second, it generally has a relationship of trust with the company for which he is a professional and credible subject. These two aspects underlie the provision of any strategic-managerial support.
The main services attributable to this area include:
Preparation of the Accounting Plan: Leanus allows you to upload company accounting data, which are reclassified into schemes and structures more suitable for the management, banking and financial evaluation of the company. The Professional is therefore able to monthly monitor the financial position of the company, its rating, financial indicators, i KPI sector, margins, points of attention and above all the various managements that contribute to forming the cash flow and which are the basis of the calculation of the DSCR extension company.
With Leanus it's possible automatically reclassify any accounting data (Italian or foreign financial statements, accounting situation, balance sheet, chart of accounts valued, etc) processed by any management system or even in Excel and to modify the pre-set reclassification model and then adapt it to the individual company. Furthermore Leanus it also allows you to reclassify one proprietary data source and load it automatically and without typing within the platform.
Bankability Analysis: any company that has a banking relationship it is subject to the periodic assessment and monitoring procedures of credit institutions which may have unexpected and more serious consequences than the Crisis Code itself. For example, failure to comply with certain indicators (triggers) it could lead to a request for repayment by the Bank, to an onset of non-financing or to a sudden worsening of the conditions applied. Procedures such as the SREP, LOM, AQR oblige Banks to continuously monitor company data. The quantity and complexity of the information that the Institutes will request from client companies, to feed these procedures, will only increase. It therefore becomes imperative that the Professional supports companies in the management of these new information flows and at the same time be able to elaborate them in order to grasp possible problems in advance that the Bank could advance.
Bankability therefore becomes a changing condition over time linked to the indicators provided for by banking procedures. Leanus allows you to elaborate bankability indicators too starting from the accounting data of the company.
Bank of Italy ed EBA they requested "Information on the strategic alignment of banks with post-Covid scenarios and structural changes in the market". In other words, the banking system is required to assess the riskiness of their portfolios in relation to the expected trend of the real economy.
The focus is on the Moratoria (although the request also applies to the other Forborne, Stage 2, UTP) and concerns not only the prospective assessment of the impacts relating to the 2021-2023 period but also the detail of the methodology adopted for the analysis in light of the new default definition. Terms like SICR, SREP Watch List, Forbearance, past-due insiders are aware of the objective difficulties of consolidating an evaluation model capable of attributing the reference "internship" to individual positions or clusters of companies that takes into account available information, updated data analysis, prospective evaluations, sector, etc.
In fact, the banking procedures have been defined as the “internship” elaborate the corresponding values to be set aside, but what is the methodology and logic for "staging"? It's possible carry out such assessments only at an aggregate level, using forecasting statistical models? An approach is possible for "Single name"? What are the difficulties and how to overcome them? In summary, how can we pass from a traditional analysis model to an “expert” evaluation system (which the Bank of Italy itself has been using for years now)?
The main balance sheet ratios - how they are to be calculated and interpreted and in which situations they could give a misleading representation of the financial dynamics and therefore of the company's assessment and creditworthiness.
How the monetary cycle indices are linked with the cash flow? How many ways are there to calculate the DSCR extension? Which ones thresholds reference to decide? Why not decide only with DSCR extension?
Company valuation: The platform allows for an evaluation continue of the company and of the shares through the method of multiples of EBITDA and of the * Heritage
Adjusted net *, both on historical data and on the company Business Plan. It is also possible to export cash flows, already calculated, to Excel to build even more articulated valuation models, such as Discounted Cash Flow.
In company sales transactions, the most used method for company valuation is the EBITDA multiples method. The big advantage of using this method is its simplicity and the fact that it is limited to operational aspects; However, there are several limits to their use and I identify them in 3 categories:
- le normalizations
- il period of reference
- EBITDA same as a valuation metric.
Benchmarking and Market Analysis: The powerful and updated Leanus Database allows in a few clicks of find competitors' data, carry out simple and complex comparisons, elaborate the balance sheets of entire sectors or market segments. With Leanus, the Professional can therefore research and compare the Company's comparables, estimate the potential and dynamics of a market, profile new clients suitable for the type of services of the Firm and much more.
Mergers, business acquisitions and other extraordinary transactions arise from the identification of new opportunities on the market. Knowing how to adequately profile companies and be able to analyze the markets requires balance sheet data, qualitative information and a good dose of analytical skills. All necessary ingredients but not enough to generate real M&A opportunities.
Only the availability of a adequate corporate valuation model, able to grasp in advance the risks and opportunities hidden in the numbers of the financial statements, it guarantees a correct identification of the potential of companies.
What is the difference between "making a query on a database of companies" and "profiling target companies effectively" and how can we understand the so-called "weak signals" that are inherent in the numbers of companies even if not always revealed?
Portfolio Analysis and Monitoring: Leanus allows you to create business portfolios, both by using the hundreds of thousands of financial statements contained in the database, and by using the inter-annual accounting data of client companies. Thanks to these functions, the Firm will be able to offer analysis services for customers and suppliers of companies, helping to detect signs of potential difficulties and therefore allowing the Customer company to intervene in time or to deepen the analysis of positions at risk.
Credit monitoring managers, study center analysts, experts from NPL / UTP and many other professional figures often have the need for analyze portfolios or market segments composed of a large number of positions. However, the information available is often partial, decentralized, out of date and difficult to manage even for excel experts. The traditional approach involves a methodology "TopDown"; the most important positions are analyzed individually, the secondary ones in an aggregate manner, on the basis of criteria defined on paper but which they hardly take into account the specific characteristics of the portfolio and / or the availability and quality of the data. Following this approach, the risk of making mistakes is very high.
In the following video we will show how you can analyze and clustering a business portfolio having as input a list of tax codes or search criteria; we will show how to segment and evaluate the portfolio in a dynamic way, updating the analyzes at the same time as the availability of new information, financial statements or updated accounting situations. We will also show the risks of adopting traditional segmentation criteria or simple sectoral aggregations.
In summary we will show how to create a dynamic observatory capable of providing aggregate information being able to go back, at any time, to the detailed information, up to the individual accounts that determined each balance.