Mukhya Consulting Private Limited

Services

Financial Planning & Due Diligence

Financial planning is a critical aspect of running an organization and has a significant impact on its performance, growth, profitability, and stability.

Financial Planning :

In contrast to businesses that have an inefficient planning process, the ones that put concerted efforts towards financial planning are more equipped to speed-track their revenue growth and overall, have higher chances of success.

If you’re wondering how important financial planning is for businesses, consider these:

A sound financial plan allows a business to allocate its resources with greater confidence.
By providing a thorough analysis of the current and future costs, income, and cash flows, a financial plan enables businesses to determine their best course of action.
A financial plan helps businesses make projections for the upcoming months, forecasting income, and outlays, which allows them to plan for the future.
Financial planning involves taking a stock of all areas of a business including payroll, HR, workforce training, inventory, marketing, research and development, and more.
Financial planning also endorses a company's commitment to sound business practices and reflects their financial stability, which elevates their trustworthiness in the eyes of vendors and investors.

At Mukhya, we understand the depth of financial planning’s implications and impacts for your business. Therefore, we operate with the aim to develop comprehensive financial planning keeping your business needs, goals, aspirations, priorities, and risk appetite in mind. Our focus remains to design financial plans tailored to your company’s financial resources and its short- and long-term objectives.

Due Diligence:

Due Diligence has been defined as "an investigation or audit of a potential investment consummated by a prospective buyer. The objective is to confirm the accuracy of the seller’s information and appraise its value."

For businesses, it can be viewed as a pre-investment intelligence tool which allows them to obtain a sound, independent, and comprehensive report prior to pouring their money into anything — resources, assets, new ventures, purchases, mergers, and so on. It could be a legal obligation or a voluntary undertaking.

At Mukhya, we have the expertise to perform due diligence of any breadth and magnitude. Our team of Due Diligence experts verifies records and compliances, conducts meetings with key people, outlines an extensive analysis of data and information, and identifies potential risks and liabilities that must be documented through representations, warranties, insurances, and indemnities. Our due diligence services include:

Financial Due Diligence
Asset Due Diligence
Legal Due Diligence
Human Resources Due Diligence
Intellectual Property (IP) Due Diligence
Merger and Acquisition (M&A) Due Diligence

FAQ

What is asset due diligence?

Asset due diligence substantiates the tangible assets that a business possesses. This process involves confirming the existence, age, value, quality, and ownership of the real estate, fixed assets, and business inventory.

What are the types of mergers and acquisitions?

There are several ways for a business to be acquired. Some of the most common M & M&A types include mergers, demergers, amalgamations, buying majority stake by way of transfer of shares, investing as compulsorily convertible debentures, allowing the investor to gain future stake in the business on conversion into equity etc.

What are the underlying factors to be considered before fixing the price for my acquisition?

Some of the factors to consider are:

Assessing the financial health and stability of the target entity
Reviewing the revenue streams and pipelines
Doing a market due diligence and comprehensive synergy study

Ultimately, you need to analyze and understand the maintainable future cash flows and earnings and gain an understanding of the overall operation. All of this plays a critical role in deal structuring and negotiation.

How important is financial planning for a businessman?

Managing funds is of paramount importance in financial planning. It helps in the management of investor funds and allows to conduct activities that aide the organization's growth. Funds management is especially vital because funds are liquid assets and a business must maintain the liquid fund ratio.
Financial planning also plays an important role in helping forecast profits. When the profit figures are known in advance, a business owner determines the expenses on a business situation, market condition, activity, or product without wasting any resource. Planning finances help a business take the right course of action when accepting or rejecting a business proposal.

Our business solutions are customized for your organization.