January « 2011 « Investrend

An independent valuation provides you with answers to the questions you often need to ask about the value of a business or property. Am I getting the best price for the sale of my business? Is the asking price too much?

Choose Investrend Accountants for a professional and accurate valuation service.

Trusts

A trust provides a valuable way of protecting the assets you have accumulated for the benefit of others.

We have extensive experience and so are able to offer specialist advice on Trust formation, ensuring that all statutory requirements are met. Obligations for trustees can often be onerous, and our assistance in Trust administration will also be invaluable.

We are able to:

Prepare the vital documentation involved in Trust formation
Attend to the special requirements involved in reporting for Trusts
Trust administration
Minute keeping service
Annual accounts
Taxation
Asset management
Investment monitoring
Income distribution

Contact us today to ensure that your trust is formed and administered as effectively as possible, covering all legal requirements allowing it to fulfill its purpose.

Superannuation

As the Government encourages Australians to take responsibility for and reach their financial retirement goals, citizens are repeatedly required to deal with Superannuation funds.

Self-Managed Superannuation is a means of saving for retirement. It allows you to control your investment strategy, reduce tax while obtaining tax benefits, and control administration costs.

Superannuation law is a delicate area and personalised planning is required for each individual. At Investrend Accountants we can assist in establishing a superannuation fund that will effectively allow you to reach your financial retirement goals.

Services we offer include:

Establishment of Self Managed Superannuation Funds
Completion of Information for the Insurance and Superannuation Commissions
Administration of Superannuation Fund Audits
Advice concerning Compliance Matters
Advice concerning Taxation Benefits
Advice on Employer obligations

Succesion Planning

In ensuring the long term success of your business, It is critical to establish a well-designed succession plan.

Coordination of the transition of your business to your successors can be an arduous process. However, we can address the complex issues of business continuation, taking the stress off your shoulders.

Selling a Business

Selling a business can be a difficult, often disheartening time. The legal and statutory tasks involved in selling a business can seem particularly arduous.

Here at Investrend Accountants we are able to relieve that stress for you.

The services we provide in relation to organising the selling of a business include:

Obtaining comparative results
Establishing a realistic sale price
Taking the business to the market
Negotiating with potential purchasers

Our friendly and professional advisors are able to assist in such a way that a maximum return for your business can be achieved.

Rental Property

At Investrend Accountants we have the necessary expertise to assist in a variety of areas in relation to residential and commercial property.

The services we offer our clients include:

Advice on the purchasing of a property
Reviews of lease agreements
Advice on funding
Guidance in tax minimisation
Advice on ownership structure
Periodic reviews to ensure returns are maximised

The importance of forecasts in making a residential investment cannot be emphasised enough. We are able to provide for you:

Forecasts of revenue returns
Forecasts of financial position
Forecasts of potential growth

Information Technology

We live in a computerised age. Technology enables us to enhance a wide variety of business processes. Effective use of software and hardware can provide enormous benefits to your business.

Here at Investrend Accountants, and together with affiliated partners, we have embraced the world of computerised systems, and as such, our experienced professionals are able to:

Discuss with you the best system to implement to further your business.
Install and configure software to suit your purposes
Recommend processes to make your computer system more secure
Suggest accounting software applications suitable for your business
Train clients to be as self-sufficient users of a variety of software
Offer advice on electronic banking

Whether you are contemplating the addition of new computer hardware, or looking at completely changing your business systems, our trained staff are able to assist you.

Company Secretary

Company legislation requires businesses to perform many administration tasks take up a lot of valuable company time. The last thing you need as a Company Director is to be stressed out trying to ensure you are complying with the Corporations Law.

The possible threat of penalties for failing to keep up with the ever changing rules is too great a risk to take.

At Investrend Accountants we are able to relieve this burden for you.

Our services include but are not limited to:

Company formations
Filing of annual returns on your behalf
Preparation of all documentation related to minutes and resolutions
Maintenance of statutory books
Assistance in changes of directors, shareholders, addresses, and office details
Bonus Issues
Share transfers
Registered Office Facility

Please contact us for further information on how we can help you to get back to the task of running your business.

Management Buy Outs

If you are currently working in a management role but with no (or limited) shareholding in the business, by taking the next step and investing a relatively small amount of money in an MBO transaction, you could stand to significantly increase your personal wealth in a short period of time. A bank or funder will support you financially for a number of years but once the finance is repaid you will have gained an equity value in your own business for a small investment.

Can I Really Run My Own Business?

You will more than likely be suffering from a number of doubts as to your capabilities in running a business of your own; this is common as an MBO is a big step to take. It is important to be confident in your team’s abilities and to convince funders that you are the right team to provide financial backing to. You may want to ask yourself the following questions:

Are you and your team sufficiently experienced?
Are you committed to seeing the transaction through?
Do you have a clear vision or strategy to take the business forward?
Will you be able to step up your role in the business in respect of dealing with staff and other stakeholders?
Are you able to access some personal capital to invest?

In addition to looking at yourself and your team, you should also decide whether the company is a viable business going forward, does it have good prospects and are your plans going to improve its current trading position further?

What are the risks facing the business and do you have a strategy to address or mitigate these?

As independent corporate advisors, Investrend specialises in creative MBO solutions. Investrend Accountants is fast, trusted, and cost effective.

Financing the Transaction

The major issue concerning management teams at this stage is how they are going to afford to acquire an established business themselves. It is important to note however, that the MBO team will only be required to input a relatively small portion of the overall consideration. The main reason you are asked to put your own capital in initially is to show your commitment to the deal. This is a commonly known as “hurt money”.

The remaining consideration often comprises bank debt in one form or another. It is one of the cheapest forms of financing but requires repaying prior to any other financial provider and will have strict terms attached.

Deferred consideration may also be introduced. This is effectively where the existing shareholders lend back to the company a proportion of the consideration for a period.

Venture capital (“VC”) funding is another common option (usually alongside bank funding) for financing the purchase price. A Venture Capitalist will assist companies by injecting cash in return for an equity stake. They have a mid-term plan of typically 3 – 5 years where they aim to increase the value of their stake (as well as yours) and ultimately exit through a number of possible routes. They will usually appoint a member of their team to your board to assist in decision making and strategic direction. They do not however, usually take any direct part in the day to day running of the business.

In order to obtain funding from financial institutions you must have a detailed and well thought through business plan for success.

To measure this, funders will invariably focus on three key criteria:

A strong and well-balanced management team;
A commercially viable existing business; and
A sound and developed strategy for the future.

All of the above areas need to be presented to chosen financiers in the correct manner through both the business plan and effective meetings with funders and Investrend Accountants can assist you in this process

The Management Team

This is one of the most critical aspects. A strong management team in a weak business is arguably a better bet than a great business being taken over by a poor management team.

You will need to demonstrate that your team is more than capable of running and growing the business, vis-à-vis it has the right spread of skills and necessary experience. A typical MBO team is made up of the following elements, consisting of 3-4 people usually:

Managing Director
Finance Director
Sales Director
Production/Operations Director

If you can’t cover all these aspects it may be possible to fill the gaps with an external candidate. Investrend Accountants may be able to help find the right person. The above team is also not prescriptive. The key is to involve all significant members of management and this will vary case by case.

If you are a Management Buy In candidate please contact us to set up a confidential one to one discussion. We look forward to hearing from you

Leveraged Buy Outs

A leveraged buyout, or LBO, is the acquisition of a company or division of a company with a substantial portion of borrowed funds.

Investrend Accountants can assist management teams to successfully plan and execute leveraged buyouts or management buyouts. We are a financial and strategic advisor to growing private companies. As consultants, we deliver substantial value for management teams through our core consulting services relating to executing a leveraged buyout.

Our leveraged buyout services include:

developing value enhancing growth strategies,
creating comprehensive business plans,
finding and successfully securing the capital necessary for a leveraged buyout

As independent corporate financial advisors, Investrend specializes in creative corporate financing solutions that maximises shareholder value by minimizing ownership (equity) dilution and personal financial risk. Investrend Accountants is fast, trusted, and cost effective.

Our Services are Affordable and Deliver Objective, Experienced Advice to Established Growing Private Businesses

Capital Restructuring

Investrend Accountants has access to extensive networks of contacts in the debt and equity markets. Our clients not only benefit from the level of our analysis and strategic insights, but from our well-developed relationships with lenders, private equity houses and high net worth individuals.

Upon completion of a standard due diligence, Investrend Accountants determines the optimal investment ready structure for a business that will then enable us to prepare the required memoranda for investors and financiers alike. Terms can be negotiated on behalf of the client, while strategic analysis and insights are provided throughout the capital raising processes.

Following a successful Capital Raising, Investrend Accountants maintains communication with all parties. Business, management and financial reports are analysed and regularly updated in order to develop models that allow for performance mapping against business plans and budgets.

Corporate Restructuring

Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Changing business needs often lead an organisation to consider restructuring. A successful restructure involves not only the creation of a sound strategy, but the effective implementation of that strategy.

Our restructuring specialists work with both performing and underperforming companies to rapidly transform their business and/or improve their performance. We provide specialist services for businesses, or business units, that have cash flow, debt, or operational problems that are reducing profitability, detracting from growth in shareholder value, and/or causing financial instability. Reorganising a business to improve profitability gives rise to a range of issues that need addressing if the restructure is to succeed.

Timing is critical when a company is in distress or underperforming. We provide proven leadership to quickly assess a company’s financial position. We improve cash flow, stabilize and improve operations, communicate with key stakeholders to re-build their support, and assist management with creating and executing an achievable turnaround plan.

When it comes to implementing a new turnaround plan we are able to provide seasoned executives to assume key roles within an organisation to help drive the plan allowing senior management to stay focused on the core business.

WHEN SHOULD YOU ENGAGE US:

if you are just hanging on and potentially facing insolvency issues
if you are struggling to refinance or raise additional finance as required to sustain the business
if you are experiencing a decline in sales
if you are experiencing a decline in margins
if you have lost a major client
cash flow is becoming, or is tight
creditor pressure is building
your organisation has low levels of staff morale
you have ATO or Superannuation arrears
it is becoming difficult to manage cash across all of the divisions of the business
agreements with bankers or financiers have been or are likely to be breached
there are large cash flow fluctuations which are difficult to manage
customers are taking longer to pay
you want to reduce debt in your business

OUR SERVICES INCLUDE:

turnaround strategies (development & implementation)
development of cash flow and working capital models
crisis management
financial restructuring
debt restructuring
forecasting and swat analysis
business strategy
distressed mergers & acquisitions
disposal of non-core assets
creditor advisory

KEY BENEFITS TO YOUR BUSINESS

WE WORK CLOSELY WITH MANAGEMENT TEAMS TO:

improve cash flow and earnings
arrange short term financing to ease cash flow issues and/or arrange a refinance of existing debt facilities
negotiate revised payment terms with major creditors and/or financiers
diagnose causes of profit decline and other business problems and provide recommendations to address the issues
rebuild your relationship with key bankers and/or financiers
prevent the company from becoming insolvent or going into voluntary administration, receivership or liquidation
formulate a restructure plan if the company has gone into voluntary administration or receivership
project manage the sale of the business or non-core assets
provide greater cash flow and earnings forecasting visibility
devise and implement an overall turnaround management plan

Mergers & Acquisitions

There are many scenarios in which mergers and acquisitions can take place. Whatever the situation, Investrend Accountants are able to take the stress out and maximise the opportunity for you by helping you to make the right decisions.

Make the Right Decision

The decision to merge with or acquire another business is not a decision to be taken lightly. You need to carefully weigh the risks and benefits and give serious consideration to the compatibility of the two businesses.

Mergers and acquisitions can provide you with outstanding growth and financial returns. However, there is also a risk that the merger or acquisition will fail if not properly executed. You can reduce the risk before you commit by examining the necessary issues through our M&A Advisory service, including:

Whether the two businesses are a good strategic ‘fit’;
The expected returns to be gained from the transaction;
The indicators you will need to identify when you’ve achieved the expected returns;
An independent appraisal of the purchase price;
Support for a single vision for the future of the business from both parties;
An understanding of how the new business will operate after the transaction;
Whether all potential legal risks and obligations have been identified.

Planning for Strategic Success

Imagine having access to all the information you need to evaluate and develop your merger or acquisition strategy. Expert advice that gives you the peace of mind of knowing exactly how your merger or acquisition will succeed, and solutions to address all the key issues, including:

An analysis of operational and competitive synergies;
Business Case modelling to determine a fair acquisition price;
Developing a Business Plan for the combined business;
Facilitating communication to ensure both parties establish a common vision and strategy for the new business;
Aligning the corporate culture and values of the two businesses to support a common vision;
Developing new marketing, communications and brand strategies;
Identifying potential financial, tax and legal issues.
Post-deal support and tracking of financial returns.

Investrend’s Thorough Approach to M&A Advisory Will Ensure the Best Possible Deal for Our Clients.

MERGERS AND ACQUISITIONS INTEGRATION: THE INTELLIGENT APPROACH

Mergers and acquisitions can deliver outstanding returns but not without risk. Effective post-merger integration is the key to optimising financial returns and mitigating risk.

The execution of post-merger integration is critical to the success of any merger or acquisition. The next three highest ranking factors are professional integration project management, innovative integration approach, and Communications.

All of these success factors demonstrate the importance of post-merger integration in making your transaction a success, and the need to engage professional specialists.

EFFECTIVE POST-MERGER INTEGRATION STARTS WITH GOODWILL

The purchase price that you have paid for your acquisition has two main components, the value of the physical assets you have acquired and goodwill.

Goodwill is usually the larger of these two components, with the opportunity for you to leverage the greatest returns. The assets that underpin Goodwill are your Employees, Customers, Brand and Intellectual Property.

Imagine the financial returns you can gain from an aligned culture with motivated, dedicated employees, strong brand positioning, and ensuring that you retain your best people and customers, rather than losing them to your competitors. This is the power of the post-merger integration of your Goodwill assets.

THE ESSENTIAL INGREDIENT OF GOODWILL IS CULTURE

Establish an aligned Culture and you will retain your best people rather than risking losing them, and their intellectual property, to your competitors. Motivated employees give great customer service, which leads to customer and brand loyalty.

Therefore, through culture you optimise returns from your four Goodwill assets Employees, Customers, Brand and Intellectual Property.

Seamless post-merger integration of physical assets, such as systems and operations, is important and will provide returns from cost-savings. However, also addressing Goodwill, and its underlying assets, will provide much more significant returns from growth.

DELIVERING OPTIMAL FINANCIAL RETURNS FOR YOU

At Investrend Corporate Advisory we provide you with an intelligent approach to post-merger integration that delivers not only the integration project to scope, deadline and budget, but will also identify and deliver all measurable financial returns for you.

Our innovative post-merger integration approach includes:

Cultural alignment;
Brand alignment and positioning;
Protection of intellectual property;
Customer retention;
Seamless integration of systems and operations;
Internal and external communications strategies;
Effective change management;
Identification of financial returns and how they can be captured.

SUCCESSFUL OUTCOMES

In addition to ensuring your post-merger integration is a financial success, you will also have the benefits of:

Retention of key talent;
High morale and a sense of shared values among employees;
Motivated, productive employees;
Retention of loyal customers;
Improved customer service levels;
Strong brand positioning and reputation.

Specialist Services

At Investrend Accountants, we provide proactive consulting services to help you take control of your business.

Working together as a team, we can review and realign your business, and then implement strategies that will help you achieve set objectives.Our aim is to provide you with advice when your business needs it – not just when you ask for it.We’ll help you manage every aspect of your business, and because we establish a one-to-one relationship with each of our clients, our advice will be tailored for your business.

We’ve developed our traditional auditing and accounting practices into innovative client-focused specialised consulting services. Our flexibility & adaptability will ensure we can help you get the best results

Our Specialist Services include but are not limited to the following:-

Mergers & Acquisitions
Corporate Restructuring
Capital Restructuring
Leveraged Buy Outs
Management Buy Outs
Company Secretary
Information Technology
Rental Property
Selling a Business
Succession Planning
Superannuation
Trusts
Valuations

Business Start Ups

Let us help you turn your business idea into a reality.

If you have a good idea for a new business venture but don’t have expertise in the legal or financial aspects of creating a new business, we can help you:

Decide on the most suitable structure for your business – sole trader, partnership, trust, or limited company
Prepare a business plan, cashflow projections, budgets, and trading forecasts
Assess your finance requirements, advise on the best sources of finance, and draw up the necessary proposals
Establish a good working relationship with your bank
Register for an Australian Business Number with the ATO
Complete registration procedures with Australian Securities and Investments Commission
Deal with Company Secretarial issues
Set up a Recording System for your internal use and for complying with Statutory Requirements

Strategic Planning

Strategic planning is an organization’s process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people.

Various business analysis techniques can be used in strategic planning, including but not limited to:-

SWOT Analysis ( Strengths, Weaknesses, Opportunities, and Threats )
PEST Analysis ( Political, Economic, Social, and Technological)
STEER Analysis ( Socio-cultural, Technological, Economic, Ecological, and Regulatory factors)
EPISTEL Analysis ( Environment, Political, Informatic, Social, Technological, Economic and Legal)

Strategic planning is the formal consideration of an organization’s future course.

All strategic planning deals with at least one of three key questions:

1. “What do we do?”

2. “For whom do we do it?”

3. “How do we excel?”

In many organizations, this is viewed as a process for determining where an organization is going over the next year or – more typically – 3 to 5 years (long term), although some extend their vision to 20 years.

In order to determine where it is going, the organization needs to know exactly where it stands, then determine where it wants to go and how it will get there. The resulting document is called the “strategic plan.”

It is also true that strategic planning may be a tool for effectively plotting the direction of a company; however, strategic planning itself cannot foretell exactly how the market will evolve and what issues will surface in the coming days in order to plan your organisational strategy. Therefore, strategic innovation and tinkering with the ’strategic plan’ have to be a cornerstone strategy for an organisation to survive the turbulent business climate.

The pressures of daily business can often mean that strategic planning takes a back seat – but to have a successful business you must plan ahead. Investrend Accountants can help you establish your strategic plan that looks at where you want your business to be in the next 3-5 years and exactly how you and your team can achieve these aims and objectives.

Your strategic plan will:

Define the characteristics of your company in 3 to 5 years
Identify your competitors
Define your objectives and financial goals
Put in place an effective implementation plan to achieve your goals

Software Solutions

Accounting software is application software that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll, and trial balance. It functions as an accounting information system.

Your accounting software may be developed in-house by you, may be purchased from a third party such as MYOB or Quick-books, or may be a combination of a third-party application software package with local modifications.

It varies greatly in its complexity and cost and the market has been undergoing considerable consolidation since the mid-1990s, with many suppliers ceasing to trade which means the choice to purchase the wrong package can have far reaching affects.

Let Investrend Accountants help you make the right choice when it comes to accounting software.

Choosing the right system for your business can be a difficult one – after all there are over 60 different accounting packages available in Australia. Here at Investrend Accountants we have invested considerable resources into on-going staff training to ensure we are able to recommend the best accounting solution for your business.

Risk Management

A multitude of risks exist in today’s business environment!

The identification of potential risks within an organisation forms the basis for every risk management process.

Understanding an organisation’s strengths, weaknesses and vulnerabilities is an essential part of good management.

A risk assessment provides this understanding, along with the means to develop adequate controls and treatments to either eliminate or reduce threats or to take advantage of potential opportunities.

At Investrend Accountants we pride ourselves on our proven ability to accurately assess risk and to protect you from vulnerabilities inherent in your enterprise. An effective risk management strategy will improve performance, allow completion of goals, and protect the value of your business.

A risk assessment includes:

Assembling Relevant Information about your Business and its Market
Identifying Major Risks facing your Business
Developing a Risk Strategy
Implementation of the Risk Management Procedures

Payroll Service

Are you getting the service you should be from your Accountant? Or should they be giving you so much more?

Like designing smart, self-sustaining systems that save you time and money and training your personnel so they can use your systems more productively. Administering your payroll can be time-consuming and divert you from the core activities of your business.

Payroll & employment legislation is growing increasingly complex.

Investrend Accountants can free up your time and relieve you of this burden by providing a comprehensive and confidential payroll service, including:

Data Entry and Recording of your Payroll
Confirming Industry Awards
Payroll Reporting
Termination Payments
Group Certificates
End of Year Payroll Reconciliations
Customised Pay Slips
Administration of PAYG, Statutory Sick Pay, Annual Leave etc
ATO Filing
Summaries and Analyses of Staff Costs
Administration of Incentive Schemes, Bonuses and Termination Payments

Even if you have only a few employees, you will make savings by engaging us to administer your payroll.

Management Consulting

Investrend Accountants is dedicated to enhancing the success of growth oriented firms by offering expert and practical business strategy and management consulting.

We provide client specific, diagnostically based solutions designed to improve management and leadership performance, team effectiveness and organisational design.

Our aim is to ensure your business achieves the potential it’s capable of!

We have the knowhow and experience to offer advice to help you run your business more effectively.

We are practiced in acting as a sounding board for management, bringing to the relationship years of experience in business growth across many sectors. We can identify key performance indicators in your business, through which you will see the positive changes occurring with the help of our professional consultants.

We are able to check that your business is as competitive, focused, and profitable as it can be. We then offer flexible strategies, designed to address the issues affecting your business.

Let us give your business a health check and assist you to identify the potential difficulties you may face with a detailed GAP Analysis. Take the practical advice we can give to ensure the continual success of your venture!

Cash Flow Forecasting

Have you ever wondered if you are holding too much inventory?

Is this the right time to expand your business?

Are you going to have enough cash to pay all expenses every month?

Survival in today’s business climate requires you to spend more time working on your business rather than in the business.

We can provide you with accurate, timely and informative cashflow forecasting reports – allowing you to:

Realise and understand when cash is available
Plan and prepare for expansion, stock control, and taxes
Analyse and anticipate key expenses

Armed with this information, we’ll work with you to develop action strategies to improve your bottom line.

Don’t take unnecessary risks with your future!

Allow the professionals at Investrend Accountants to guide you towards achieving your financial goals.

Accounting & Bookkeeping

Modern business demands up to date accurate financial information.

Investrend Accountants realises that clients expect more from their accountants than just keeping score. Business owners and Company Directors want accountants who can add value to their business, be a part of the management team and guide the way to continued growth and prosperity.

We can relieve you and your staff of an enormous burden by taking care of all your bookkeeping and accounting needs, including but not limited to:-

Bookkeeping & Data Entry
Business & Management Systems
Preparation of Business Activity Statements (BAS)
Preparation of Annual Accounts
Periodic Management Accounts for Tax, Business Appraisal and Planning Purposes

We will discuss your requirements with you and provide you with tailored information and constructive advice on a regular basis.

Benchmarking

Have you ever wondered how your business performs compared to your competitors?

Are you spending enough on advertising?

Are you paying too much rent?

Are your staff costs too high?

What is the average bottom line of your competitors?

Survival in today’s business climate requires you to spend more time working on your business rather than in the business

We can provide you with accurate, timely and informative benchmarking reports – allowing you to:

See how your business compares against your competitors
Understand how the rest of your industry works
Analyse the key performance indicators of your industry

Armed with this information, we’ll work with you to develop action strategies to improve your bottom line.

Audit

Here at Investrend Accountants, we view Audits not as an overhead or a necessary evil but rather as a great opportunity to review your business.

Our audit team will work closely with you to get to know your business. We use the latest computerised systems, based around a detailed analytical review of the accounts. This allows us to offer an objective view of your business so we can advise you of any potential problem areas.

GST

The GSTsystem is a complex and confusing one. For this reason Investrend Accountants ensures its advisors are continuously up to date on the changes, and able to offer you accurate advice.

Every transaction now brings with it a GST issue. We have experience with these issues and are able to offer expert advice on the implications of GST for your business. The GST related services we offer include, but are not limited to:

Advice on registering for GST

Filing and adjusting GST returns

ATOauditassistance

Taxation

Taxation can be a major cost to your business!

At Investrend Accountants we offer a full range of taxation strategy services.

Our taxation consulting division is nationally recognised and offers advice to clients based on proven knowledge and experience. Our proactive approach ensures we deliver a consistent service and build solid relationships which stand the test of time.

We will work in partnership with you to legally minimise your tax and help you achieve your key objectives.

We provide a complete service and provide advice in all of the following areas:

Preparation of activity statements and advice on payment of tax

GST/FBT obligations

Development and implementation of tax effective trust structures for the provision of superior asset protection and tax minimisation

Management of any ATO Audits and / or disputes

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