Transformational

Your company is at an important juncture; transformational change is either required to stay competitive or could give you a leg up on the competition. Transformational change is a fundamental shift in your business model. It could be a change in the size or the scope of what your business does: shift in strategy, expansion, downsizing, acquisition or divestiture. A quality financial management system is essential so that you make the right decision and execute your strategy; Navix can be the cornerstone of this.

Creating a consolidated budget from Navix is an excellent mechanism for evaluating an expansion or acquisition. Build a forecast for your existing company and separate model to capture the financial impact of the changes you are planning to your business. Using this methodology you can adjust the assumptions of both the base company and the proposed transformation to perform meaningful sensitivity analysis.

For an acquisition you would include the target company’s current financials, any costs incurred from the purchase, cost savings and other synergistic benefits that will be realized by the combined entity. Using the consolidation feature you can compare and contrast potential combined entity versus the status quo. This will help you determine a price at which the deal does not make sense. Once the transaction is complete integration can be a nightmare from a logistical standpoint. Eliminating redundancies without compromising quality and your ability to realize revenue synergies can be challenging. The both sides of the cost benefit equation must be fully vetted for all import decisions.

Most transformational efforts require an investment. If you need to raise cash, this type of detailed analysis will place you at an advantage when it comes to negotiating the terms of a capital infusion. Navix’s customizable reporting features will allow you to create intelligent presentations for any audience.

With the big investment required for your transformational effort it is essential that you invest the time and energy to implement forward looking financial analysis.