CFO 4.0

Being an entrepreneur, you are concerned about sustainable growth and value enhancement for your company. CFP offers a unique service and solution portfolio that will support you in this regard and that is focussed on the following drivers of growth and value.

Effective corporate management

Company growth normally leads to increasing requirements for accounting and controlling. International expansion and buy-and-build strategies result in a growing number of companies and shareholdings that must be managed. Your management needs valid and reliable indicators that are amalgamated and consolidated by automated processes across different ERP and accounting systems, legal entities, currency areas and specific valuation requirements under financial accounting regulations of different countries. You require integrated planning of the income statement and balance sheet as the basis for the ongoing company valuation and liquidity management.

Infografik CPMAll this can be simplified significantly with an integrated platform for the consolidation of subsidiaries and shareholdings, as well as for planning, analysis and reporting. If all these modules access the same databases, full consistency of management reporting across all areas can be ensured. The efficiency of the information provision process is accelerated, the data quality enhanced, and strategic and operational decisions can be better planned, implemented and controlled.

Benefit from our extensive experience in the setup of a future-oriented corporate management that we have gained in numerous internationally operating companies. Capitalising on a large number of projects implemented in the controlling area, we have developed templates for diverse industries for immediate use, reducing the implementation expenditure.

Thanks to our partnerships, we are not only in a position to provide solutions, but can also take over the responsibility for their implementation:

Shared Service Center (SSC)

Under the term Shared Services, we understand the pooling of service processes and competencies.

In our Shared Service Center, we consolidate similar processes from different areas of our clients. At the same time, we bundle the expertise of our hand-selected top experts and provide customised innovative IT tools for a comprehensive value management via our Cloud Server.

Acquisitions (Buy & Build Strategy)

When pursuing buy & build strategies, growth and value enhancement are generated through company acquisitions. This is not so much about sporadic individual transactions, but rather about systematic acquisitions as part of the overall corporate strategy. Empiric M&A studies have shown that companies that implement buy & build strategies consistently are in a position to generate a positive contribution to the success.

CFP specialises in the implementation and realisation of buy & build strategies. This is where the important role of the location of Liechtenstein comes into play. Liechtenstein is one of the most competitive business locations in the world. European and international economic agreements ensure stability with economic freedom of movement and unrestricted access to the European market.

Buy & build activities, complemented by Liechtenstein’s location advantages and the unique services of our Shared Service Center facilitate high growth.

H = Holding, T = Tochter

H = Holding, T = Tochter

You intend to exploit new sales channels for your successful products at home or abroad through acquisitions, aim to expand your product portfolio within your industrial segment, endeavour to strengthen your market share to reach market leadership, or wish to extend the depth of your value creation strategically.

When implementing a buy & build strategy, it is necessary to determine the company values of eligible candidates for a takeover, to develop financing concepts, locate capital providers and, last but not least, to build up the shareholding controlling and integrate processes and IT systems.

CFP offers the matching integrated portfolio of services:

  • Center of Expertise for Corporate Finance:
    • Preparation of valuation appraisals
    • Development of financing concepts
    • Research and due diligence
  • Center of Expertise for Corporate Performance Management:
    • International accounting and fast-close
    • Management consolidation
    • Preparation of consolidated accounts
    • Integrated corporate planning
  • Center of Expertise for Corporate Process Management:
    • Establishment of shared-service and network organisations or carve-outs
    • Transfer prices
    • Process automation
    • Post-merger integration
    • SAP implementation

Full rating

What do we mean by rating?Vollrating

When hearing the term “rating”, we intuitively think of major agencies, like Standard&Poor‘s, Moody’s or Fitch. We imagine long sequences of letters from AAA to C and the enormous power that comes with the up- and downgrades of these agencies.

In reality, a rating is nothing else than a statement on the likeliness of the ability to pay within a specified period, for example within the next twelve months. It is technically defined by the opposite negative event, the default or credit event.

In the above overview, the “green area” of the investment grade ends at Baa3 or BBB-. This corresponds to a probability of default (PD) of roughly 0.5%. Thus, one in 200 companies of this risk category will fail to fulfil its payment obligations in time in the next twelve months. Two aspects are important in this context:

  • A PD is not a statement on the specific solvency of the analysed company. Only a categorisation of the risk has been made. Because, in fact, solvency is digital: The company can or cannot pay by the deadline.
  • The PD does not make any statement on the default of the investors. For example, if the insolvent company is taken over by a strategic investor that will cover all debts, there will in fact be no default for the investors in spite of the insolvency.

When is a full rating purposeful and what support can CFP provide?

Investors know that attractive returns can only be earned if they are prepared to accept risks. Who are these investors?

  • Banks that provide loans
  • Institutional investors that invest in debt instruments
  • Small investors that purchase corporate bonds
  • Suppliers that accept terms of payment in order not to lose the business
  • etc.

All these investors rely on an accurate risk measurement. However, the accuracy depends less on hard work and a lot of manual activity. First and foremost, it relies on intelligent risk models and a valid statistical basis. If these two are available, risk measurement can be largely standardised.

On the one hand, this standardisation will reduce the costs at the company assessed and the tied-up management capacity. On the other hand, it creates the necessary stability with the investors to make the investment decision.

DThe expenditure undertaken by the three big agencies for their ratings is necessary and appropriate for major public corporations. However, it is not required for the majority of medium-sized companies.

Ratings are typically based on three analytical pillars:

  • The figures of the subject of the rating, meaning its balance-sheets, interim balance figures and budgets
  • The company's specifics beyond the figures, for example personnel and management structure, process quality and innovation culture, the customer and supplier situation, etc.
  • The market, competitive and economic environment

For what applications is the CFP rating suited?

  • Plausibility check of a banking case
  • In-depth analysis of the credit risks for companies with cross-border credit rating
  • M&A projects
  • Private equity investments
  • Debt advisory
  • Integrated value management

Why does the use of the CFP rating make sense?

  • The quality of the risk measurement has been scientifically proven
  • The rating is integrated organically into existing rating processes.
  • The rating is performed by a neutral third party. It is thus less contestable during audits conducted by third parties.
  • The rating is performed externally and saves resources in the day-to-day execution.
  • The rating has a more objective basis and relieves internal departments of lengthy discussion about subjectivisms; this also saves capacities.
  • The rating is validated, developed and refined externally.
  • The rating is located in the cloud; this also saves capacities during maintenance.

We support our clients with the latest cloud-based IT platforms and best-practice processes to achieve sustainable success and growth:

Group reporting, consolidation and planning

Infografik CPMModern platforms for corporate performance management combine applications for the consolidation of subsidiaries and shareholdings as well as modules for planning, analysis and reporting, and provide standardised interfaces for a large number of operational ERP systems. If all these modules access the same databases, full consistency of management reporting across all areas can be ensured. The efficiency of the information provision process is accelerated, the data quality enhanced, and strategic and operational decisions can be better planned, implemented and controlled.

iConsolidationBenefit from the extensive experience in the setup of a future-oriented corporate management that we gained in numerous internationally operating companies. Capitalising on a large number of projects implemented in the controlling and consolidation area, we have developed templates for diverse industries for immediate use, reducing the implementation expenditure.

ERP for growth-oriented SMEs and SME groups

Growth situations often also require new IT solutions to be able to map best practice processes efficiently and to achieve the transparency necessary for an effective company control.

ERP for group subsidiaries

The roll-out of a group-wide ERP solution via templates across all subsidiaries is considered the optimal route towards achieving high efficiency of the processes as well as transparency and significance of the reporting in company groups.

However, this route is not equally suited for all companies. In practice, it may fail, for example, because the complexity of the group solution is inappropriate for the requirements of smaller subsidiaries and associated with too high cost. This would be like using the proverbial «sledgehammer to crack a nut».

Frequently, this approach also fails to provide dynamically growing subsidiaries with the necessary agility. The adjustment of the system to the continuously developing requirements of the subsidiaries leads to a bottleneck in the central T department, excessively high consulting costs and over-dependence of the subsidiaries on the capacities and priorities of the central IT department.

The risk management gains increasingly in importance, tying up more and more capacities in finance and accounting.

We can help to minimise risks through continuous verification and control of these – in the role of consultants, but also as auditors. This makes an important contribution to a sustainable value enhancement of the company.

Based on our extensive expertise in group accounting and shareholding controlling, we support you in issues relating to international accounting, permanent valuation (goodwill impairment), or we assess the company at legal entity level. Parallel to that, we develop your key performance indicators (KPIs) together with you.

Ask about our services in connection with risk management, valuation for companies and shareholding companies as consultants or as auditors. The significant expertise gained from process advice in different industries and company sizes is especially beneficial for the risk management and the relevant KPIs. We thus contribute significantly to result optimisation and the enhancement of the company value.

Also in the finance area of companies, there is a growing trend towards taking «make or buy» decisions. The establishment and preservation of internal know-how is very costly in many areas. The CFP “Center of Expertise” is an economically attractive alternative to generating know-how internally. At a calculable annual all-inclusive price, it allows for continuous assistance by experts and access to the expertise gained in more than 80 projects in companies of diverse sizes and industries.

As Center of Expertise, the CFP Wirtschaftsprüfung AG offers the following services:

  • Audits, compliance & risk management
  • Valuation appraisals
  • NAV determination and fund /performance reporting

Your goal is to increase your result through a targeted and consistent buy & build strategy and thus to achieve sustainable company value enhancement.

We take over the corporate finance services and also provide financing solutions.

Aside from acquisition financing, we can also provide growth financing for the “internal growth”.

This makes us the ideal partner for the CEO / CFO to reach your growth targets and will not result in additional fixed costs for you. You can act flexibly, as needed.

Infografik-CFO-Aufgaben

Our experience has shown that the CFO, as a result of the internal cost brake and increasing diversity of tasks, is not adequately available to attend to specialist projects – which would actually be required in view of the strategic goals of the company.

In addition, over the past few years, the spectrum of responsibilities of a CFO has broadened significantly and has also shifted. The topics risk management and compliance have gained increasingly in significance and priority for CFOs.

Last but not least, growth opportunities will result from an established and growing network of successful companies.

InvestmentprozessThis is why we have founded the Investoren-Club CiP which bundles concentrated know-how and vital information on opportunities.

The members provide know-how and their personal network in the club, which opens up opportunities at multiple levels. Utilise the network.

Where investments are concerned, decisions are made based on a well-established and efficient process while pursuing active risk management.

Buy & Build and Succession

We are your partner for the successful implementation of a buy & build strategy, but also for preparing and solving issues of succession.

We have developed a structure that will enable you to put the succession in place while taking your private goals into account. You determine how fast and in what steps the solution is to be jointly developed.

Also in the finance area of companies, there is a growing trend towards taking «make or buy» decisions. The establishment and preservation of internal know-how is very costly in many areas.

The CFP “Center of Expertise” is an economically attractive alternative to generating know-how internally. At a calculable annual all-inclusive price, it allows for continuous assistance by top-class experts and access to the expertise gained in more than 100 projects in companies of different sizes and industries.

CFP offers the following Centers of Expertise:

Corporate Performance Management

Strategy management

  • Strategy map

Balanced scorecard / risk scorecard

  • Perspectives and KPIs
  • Risk indicators RPIs

Legal & management consolidation

  • International accounting
  • Fast-Close / Hard-Close
  • Management consolidation
  • Preparation of consolidated accounts
  • Shareholding controlling

Integrated corporate planning (strategic – top down)

  • Amalgamation of subplans
  • Financial yield optimisation

Corporate Finance Management

Buy-Out / Buy-In structures

  • Structuring
  • Due diligence
  • Integrated corporate planning (operational bottom-up)
  • Assessment

Acquisitions (buy & build strategy) / spin-off / carve-out

  • Research
  • Due diligence
  • Integrated corporate planning (operational bottom-up)
  • Valuation

Financing and financial investments

Corporate Process Management

Process optimisation

  • Shared service organisation
  • Network organisation
  • Transfer prices
  • Process automation (Industry 4.0)

Restructuring

  • Mergers & acquisitions (M&A)
  • Post-merger integration
  • Carve-out / spin-off

IT solutions for process optimisation

  • Group consolidation, controlling and planning
  • ERP for group subsidiaries
  • ERP for SME (groups)