CapEx Planning
As your business grows, requirements or opportunities that arise may dictate that decisions on capital investments need to be made.
This can create a number of questions or roadblocks, including:-
Is the investment worth undertaking?
Understanding the reasons for the investment are important to determine if it is worthwhile proceeding to the next steps. Examples include removing a bottleneck in operations, replacing ageing equipment, or adopting new technology to increase efficiency.
What is the expected return on investment?
Going through the expected costs and benefits of the proposed investment and putting these into quantifiable terms is the starting point to assessing the return on your investment. There are a number of models available to perform this analysis which help to clarify whether the investment is worth undertaking, and allow you to make a decision with confidence.
How should the investment be funded?
Determining if the business can afford to fund the investment from reserves, or whether external funding should be sourced is an important decision which requires a good understanding of your cash flow and financial position. Modelling and scenario planning are effective tools to test your assumptions and work through this issue.
Satisfying financier requirements
If external funding needs to be sourced, there may be differing requirements from your financier to be satisfied to get the approval over the line. Examples include statements of assets & liabilities, up to date management accounts, cash flow projections or business plans.
We can assist and step you through all of these stages as they occur to allow you to make investment decisions with clarity and confidence.