While boosting revenue growth is a primary goal for any business, the careful management of existing funds is equally crucial. Maintaining a healthy cash flow and having readily available capital empower companies to capitalize on new opportunities, thus nurturing future sales.
Whether it's fine-tuning pricing strategies or addressing interim CFO needs, the expertise of a corporate finance consultant can be invaluable for your company. A skilled consultant brings a set of abilities that harmonize seamlessly with your team, providing actionable insights crucial for propelling your business forward.
What is a Corporate Finance Consultant?
A Corporate Finance Consultant offers internal financial guidance to corporations with the primary objective of enhancing shareholder value. The scope of this consulting can vary, encompassing activities such as aiding in a company's M&A (mergers and acquisitions) strategy or providing assistance in navigating through an audit process. The consultant's expertise is leveraged to support the company in making sound financial decisions and optimizing its overall financial performance.
Corporate finance experts typically possess a diverse background, often starting with an undergraduate degree in finance and further advancing their education with an MBA (Master of Business Administration). Many initiate their careers by gaining experience in renowned financial firms, where they acquire a blend of consulting and operational expertise. This varied background equips them with a comprehensive skill set to navigate the complexities of corporate finance and contribute valuable insights to the organizations they serve.
Corporate finance consultants have the flexibility to choose between working for large firms or operating as independent contractors. In recent times, there has been a growing recognition among businesses regarding the advantages of engaging independent corporate finance consultants over opting for services from larger firms. The appeal lies in the specialized expertise, personalized attention, and often more cost-effective solutions that independent consultants can offer. This trend reflects a shift in the corporate landscape towards valuing the agility and tailored services provided by independent professionals in the field of corporate finance.
Independent consultants bring specialized skill sets that align closely with the specific needs of companies. One key advantage is their cost-effectiveness, as they typically operate without the overhead associated with larger firms. The absence of substantial overhead allows independent consultants to offer their services at a potentially lower cost. Additionally, since many independent consultants are open to virtual work, businesses can benefit from reduced travel expenses compared to engagements with consultants tied to physical office locations. This flexibility and efficiency make independent consultants an attractive option for companies seeking tailored expertise without the financial burden of large-firm infrastructure.
Types of Financial Consultants
- FP&A consulting: A financial consultant specializing in Financial Planning and Analysis (FP&A) helps companies with budgeting and revenue forecasting—one of the fastest growing skills needed by companies this year, according to The BTG 2021 Skills Index. They help business leaders evaluate the best use for their working capital and gauge the company’s overall financial health.
- Financial controls: This type of consultant helps organizations assess the policies they’re using to allocate their financial resources. They do this by analyzing the data, researching different operational scenarios, and making financial projections.
- Treasury consulting: Treasury management involves optimizing cash flow and minimizing the financial risks a business faces. This type of consultant ensures that your company has sufficient cash flow for day-to-day operations while developing a long-term treasury strategy as well.
- Debt management: If your company is struggling with its debt load and facing financial difficulties as a result, a financial consultant can help. This kind of consultant can help you understand your options and chart the best path forward.
- Risk management: Consultants specializing in financial risk management help companies identify and mitigate risk in their investments. Every investment involves some degree of risk, but a risk management consultant can help you better understand the potential trade-offs.
Why Hire a Corporate Finance Consultant?
A corporate finance consultant can provide a comprehensive analysis of your business and help you deal with the big and small financial decisions your company is facing. Let’s look at a few ways a corporate finance consultant can help.
Assess financial risks
A corporate finance consultant can help you evaluate your company’s current financial position. They’ll consider the present risks your company faces and look at how these risks could impact the company in the future.
They can also build a financial model and forecast your company’s future financial position. This information will help you establish the goals and objectives for your company.
Identify new streams of income
By analyzing your company’s performance, a corporate finance consultant can help you identify opportunities to create new income streams. These consultants understand consumer behavior and may be able to recommend ways to expand your current market.
That could be through transaction-based revenue, recurring revenue, or revenue from services rendered. They can also help you develop forecasting models for each type of revenue, which can help you better manage your company’s cash flow.
Many businesses take on some type of debt, and the ability to manage this debt is crucial. A corporate finance consultant can help you understand your options and restructure your debt to avoid bankruptcy. And if you do have to go through bankruptcy, a corporate finance consultant can help you develop a plan to protect your assets.
Help you navigate each stage of growth
A corporate finance consultant can help you gain clarity around your company’s vision and provide a neutral perspective so you can navigate each new stage of growth. And they can provide you with the plan and tools to make it happen.
That individual can also help you plan for and navigate events like mergers and acquisitions, taking your company public, or making provisions to transfer company ownership once you retire.
The Bottom Line
The financial decisions you make today will continue to impact your company for years to come. A corporate finance consultant can provide a fresh perspective and help you see opportunities you weren’t aware of before.
If you’re looking for an outside consultant to help with your company’s financial needs, BTG’s talent marketplace is a great place to start. Many of our corporate finance consultants have both consulting and operational experience and have been trained by Big 3 and boutique firms.
And every consultant is curated and vetted by our in-house team. That way, you know you’re receiving hands-on support from the most qualified individuals. If you’re interested in getting started, you can post a project today.
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