Corporate Finance Consulting: Why On-Demand Talent Are a Perfect Fit
Bringing in new revenue is a top priority for any business, but managing the money you already have is just as important. Having sufficient cash flow and access to capital makes it possible for companies to invest in new opportunities that will lead to more sales in the future.
Whether you’re updating your pricing strategy or need an interim CFO, your company can likely benefit from the services of a corporate finance consultant. The right consultant has the skill sets to complement your team and provide actionable insights to move the needle in your business.
What is a Corporate Finance Consultant?
A corporate finance consultant provides internal financial guidance to corporations with the overarching goal of increasing shareholder value. This consulting can take various forms, from assisting in a company’s M&A strategy to helping you navigate an audit.
Corporate finance experts often have a diverse background to draw from, with many studying finance for their undergraduate degree and going on to earn an MBA. Many begin their careers by working with top financial firms, and have a mixture of consulting and operational experience.
Corporate finance consultants can either work for a large firm or operate as independent contractors. Increasingly, many businesses are seeing the benefit of utilizing independent corporate finance consultants over large firms.
Independent consultants have the specialized skill sets companies are looking for but are usually more cost-effective since they don’t have the large-firm overhead. And since independent consultants are usually open to virtual work, there are fewer travel expenses to deal with.
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.
Debt management
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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