We build customized Master Budgets for our client companies. Most micro-cap and small cap management teams are so involved in raising cash, trying to run their businesses, staying in business, growing their corporate structure, submitting their regulation filings, dealing with personnel problems that they don’t have time to financially run their business at the highest levels of financial controls.
Our Master Budgets are tailored to run their businesses. We build their Driver Sheet for them to make their assumptions. An example: we combine their division sales into an assumed Revenue line item. The beauty of the Master Budget is that they can change their assumptions at any time. The Model re-calculates their Income Statement, Balance Sheet, Cash Flow Statement including calculating their shares outstanding and issued, valuation and price targets.
If they are contemplating a merger, spin off or acquisition, the model calculates these assumptions. A given company might think an acquisition is accretive when in fact it is not. Or they might think a proposed deal is a positive and it turns out to be much better than they had anticipated.
We teach our clients how to use and run their Master Budget. We will assign an analyst to help them and work within the reality of their company.
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