Financial diagnostics of the company
- Financial Consulting
- Investment banking
- Investor relations (IR)
By having profound practical experience, on the one hand, and being interested and independent specialists, on the other, experts of Pro Capital Investment will carry out comprehensive diagnostic of your business wherein we will investigate the internal reserves and assess them for resolution of financial problems. We will prepare propositions to optimize the mechanisms for usage of existing reserves, and in case of necessity, will forecast indices of activity for your company on the market, will ground selection of strategic goals, will develop algorithms to reach them based on the taken strategic decisions, and will build an effective scheme of external financing.
Using both general and individual methods of financial diagnostics, we will investigate: effectiveness of capital usage (and financial resources in general) of the company, level of provision of current capital, solvency indicators, liquidity, and financial stability (on the date and in the dynamics), and will also calculate all the other indicators covered by the basic techniques of financial diagnostics.
Thus, the result of cooperation with Pro Capital Investment will be detailed characteristic of the financial condition of the company, indication of reasons for negative changes, statement of existing reserves, coverage of the most efficient instruments for business optimization, assessment of implementation effectiveness of developed optimization activities.
Very often company management searches for ways to attract external financing when the company starts to experience financial difficulties. Various forms of financial difficulties can be grouped in three general issues: low solvency; low return on capital; low financial stability. Sometimes it turns out that the funds invested in the business do not result in a radical improvement of the situation, but on the contrary, cause growth of external debt and only temporarily postpone adoption of important decisions on the future of the company. At the same time, to solve these problems it is necessary (and in some cases sufficient) to analyze the principles of the internal financial structure of the company, assess the financial reserves and management policy, develop mechanisms to optimize financial flows. These tasks are implemented within the financial diagnostics company.
The main objective of financial diagnostics of the company is to determine decisions (actions) for the company's management or to identify factors influenced by the environment which cause improvement (deterioration) of the state of the business. At first glance, financial diagnostics are calculations of the huge number of coefficients, indices, indicators and analysis of patterns of their dynamics. However, the results of financial diagnostics are not only a set of calculated metrics; the main thing here is formulation of management recommendations, implementation of which will be the basis for improving the company's financial condition and growth of its sustainability.
It should be noted that the recommendations by external consultants and independent experts are most effective for the business, in particular, to increase its profitability. This is due to the fact that employees of the company, even the most professional and skilled ones, are gradually getting used to the current situation in the company, often cannot (and sometimes do not want to) rise above it, to radically revise the situation, understand the need to make decisions on major reorganization activities and to formulate such solutions.