Grant Thornton

Advisory Services

ADVISORY SERVICES FOR PRIVATELY HELD BUSINESSES (PHB)

Strategic business planning

Effective planning is probably the single most important factor in the success of our clients' businesses.  Plans must look at the structure of management, key opportunities and the limited resources available, and the planning must involve the people in your business who are key to making change work.  No matter how different, each plan follows the same methodology developed by Grant Thornton over the past two decades.  It is quick, pragmatic and effective.

Management/family succession

Where to from here?  What is my business worth? Who should buy it?  What about the family? Who else might there be?  What can be done to increase the value?  What about tax?  How will they pay for it?  How do I retire? What about wills?  Few owners of private businesses have developed a written succession plan, mostly it’s a tangle of questions in their heads.  The succession planning process helps you to plot your future by providing you with a strategy and prioritised choices to work on

We see Succession Planning as “a formal process which enables the business owner(s) to evaluate their business and personal circumstances in light of current and possible future exit options, so as to develop a preferred course of action from a range of alternatives, whilst they are still in a position of control.”

Business owner structures

How would you feel if everything you've worked for was lost?  Most business owners unknowingly have their assets exposed, and risk losing their wealth because they have not been advised on how to structure their assets and liabilities in the event of misfortune.  Grant Thornton helps its clients to maximise the protection of their assets; ensure their assets are owned in the most appropriate structure; build a wall between their business and personal assets; gain the maximum security they can for advances to their business; and protect themselves before its too late.

Family member remuneration

The family controlled or privately owned business can represent an enviable source of financial independence for key stakeholders.  However, the question of fair remuneration for the family employees is a burning issue and the following should be considered, “What should be the basis for establishing salary levels of family employees and how do you reward ownership?”

There are a number of commercial and taxation benefits that remuneration planning can offer you.  Remuneration is an emotional issue for a lot of people and getting it wrong has the potential to create conflict within privately owned and family owned businesses.  Issues of fairness are critical to successfully implementing remuneration advice.

Business owner audits

Our emphasis is on understanding the business, the owners and the balance sheet.  Our audit approach has greater emphasis on systems, risk, reconciliation and accounting policies, and less focus on extensive 'robotic' verification and technical compliance.

Debt and banking advisory

When talking with our clients about their businesses finance & banking needs, we often find they are not really across all the terms of their current banking deal, knowing this is crucial and the start to getting a better deal! 

Debt & Banking Advisory covers the following:

1.    Finance & banking reviews

  • an independent expert review of existing or proposed debt and banking facilities
  • highlights positives and negatives for the facilities
  • areas in which the deal can be improved.

2.    Debt advisory

  • capital management review; having the right level of gearing for a business is a key capital management decision
  • advice on the level and structure of debt that a business can expect to sustain
  • identify the best financiers for industry and businesses 
  • prepare and manage competitive tender processes with appropriate financiers and banks
  • negotiate with financiers / banks to achieve key client goals

 

Profit improvement

As a Business Owner, you continually strive to improve profit not only to finance a lifestyle and provide capital for your business, but to create its value over time. 

We assist businesses to improve profit by reviewing their business processes, applying best practices and analysing revenue and cost drivers so that the right strategies for improvement can be implemented.  We are able to benchmark the financial performance against similar businesses and provide recommendations for improvement by accessing publicly available databases.

Protecting business value

Protecting the value you have built up in the business can mean you need to plan the process of getting your money out of your business. We have found that owners may wish to extract their wealth to diversify their risk and/or as part of pre-sale strategy to maximise their personal wealth.  Wealth preservation is the process of placing the wealth extracted from the business into a suitable ownership structure.  The key elements of wealth preservation are asset protection, estate planning and making appropriate investments.

Extracting and preserving wealth often involve moving assets and cash around, so minimising transaction costs such as capital gains tax and stamp duty are important factors to consider when balancing the benefits with the costs.

Owner affairs management

Not enough time to organise your personal financial affairs?  We understand that, as a busy person, you do not always have the time to attend to your personal affairs.  Whether it’s paying your bills, accounting for your investments and taxes each year or simply knowing you are complying with all your statutory and legal obligations, we can assist you with this.  Not only will this ease your mind, it will provide you with the time and freedom to focus on what you enjoy and excel at.

Business services and compliance

Are you up to date with your business and personal taxation obligations?  Our Business Services team focuses on owner managed businesses and specialises in managing:

  • annual financial statement reporting
  • taxation reporting and payment obligations
  • company secretarial and other regulatory filing requirements, and other special business needs of new and growing businesses and their owners.

While managing your obligations we ensure your business complies with all relevant requirements and we identify any areas of concern for further improvement in your own financial circumstances.

Business health checks

Our Business Health Checks are designed to specifically meet the needs of Business Owners and their business.  It highlights areas of risk in relation to the business and provides recommendations for improvement.
A ‘Health Check’ provides comfort regarding the health and hygiene of your business.  It not only delivers a report card on compliance with financial and taxation obligations, it also considers some of those issues that tend to keep you, the owner, awake at night.

 

Use the links at bottom left for more information on any of these topics, or learn more about strategic business planning next.  

 
 

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