Do nothing in haste, look carefully to each step, and from the beginning think what may be the end

Edward Whymper

Financial Advice

How do you help entrepreneurs deal with their relationships with banks constructively?
The enormous changes made to the regulatory framework relating to financial intermediaries and the international financial crisis have radically changed the relationship between banks and businesses. This change has become a key success factor for those corporate clients of ours who have introduced financial planning systems and who have learned to provide the banking system with information enabling ratings that are consistent with each business situation.

How does financial analysis help with starting up new entrepreneurial projects?
When evaluating a new business opportunity, the entrepreneur pays a great deal of attention to the economic and tax aspects but occasionally underestimates the financial implications. If it is true that the results of operations and financial results tend to coincide in the long term, significant deviations can be created in the short term that may lead to financial pressure or to real cash crunches. Our experience suggests that good financial planning eliminates most of these risks.

What characteristics should a company with an adequate financial structure possess?
It is well known that Italian companies are generally undercapitalised. We often work with our corporate clients on their debt ratio, namely the ratio between borrowed capital and equity capital. This is because the debt ratio is one of the factors that most influence bank ratings and hence the burden of interests payable. We also focus on diversifying funding sources so that their duration and burden are consistent with the company’s asset structure.