If undertaken properly, financial analysis is a valuable exercise that can achieve the following benefits:
Preparation or confirmation of a dealership valuation in order to assist in a buy/sell transaction or to assist in obtaining finance.
Comparing current and forecast profi t to industry Key Performance Indicators, allows identification of underperforming operations, unrealistic profit assumptions or areas of potential improvement.
Assists in determining whether a proposed facility spend is financially viable, based on the new facility’s impact on
expected future profits.
Allows the identification of payback periods of a facility investment from expected future profi ts. In addition, it provides a dealership with budgeting ability and analysis of expected outcomes under predetermined operating assumptions.
Our strategic financial analysis tool will deliver the above benefits and can be tailored to meet any investment analysis required.
Our analysis tool includes the following elements:
- Financial model which is used to undertake a financial analysis.
- Sensitivity analysis on the fi nancial model (e.g. what happens to forecast total dealership profit if monthly unit sales drop by 5%) to assess risk ranges.
- Comparison between the forecast profit and loss in the financial model against key performance indicators for automotive retailers or indicators tailored to the operating conditions of the client to determine adequacy of projected results.
- Payback period analysis.
- Detailed financial ratio analysis, including profitability and liquidity ratios.
If required, we can generate an integrated profit and loss statement, balance sheet and cash flow statement, for submission to your financier or for Information Memorandum purposes (i.e. if you are selling your dealership).
Each strategic financial analysis report is specifically tailored to provide relevant and individual transactions.
On completion of the report, we will present the results of the report, and how the results will impact the next stage of the transaction, along with providing suggestions on a subsequent course of action.