An established and profitable company with a high equity ratio and sufficient liquidity that has no borrowing requirements will focus its financial strategy on the management of existing financial resources and working capital management. Planning, controlling and reporting will be aligned with the internal requirements of management.
On the other hand, a company in the growth phase with a corresponding financing requirement will design its financial strategy with a view to tight controlling for liquidity and earnings, actively design the leverage effect and manage the relevant variables for compliance with the credit covenants. Planning, controlling and reporting will be geared to the requirements of the capital providers and to the requirements of management reporting.
There are quite a few constellations in small and medium-sized companies that have a direct impact on the financial strategy. In very many cases, the entrepreneurs are not aware, so that the benefits of this clear orientation cannot become effective.
Different focuses require different approaches in finance management.
With THE MAK’ED TEAM you develop the derivation of your finance strategy from your corporate strategy and set the right focus in finance management.