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Well-planned strategies will ultimately add value to a company, says Áine Farrelly of accountancy firm RSM, writes Siobhán Maguire

Forewarned is forearmed, according to the saying, and in the ever-shifting paradigms of the business world such a mantra goes a long way to help companies successfully tackle bumps and bruises that may come their way.

On July 10th, clients of RSM, a global network of audit, tax and consultancy networks, will learn to do just this when the firm host a seminar designed to get business owners get the most from their companies as they navigate, grow and prosper.

Áine Farrelly, a consulting partner at RSM, said the ‘Planning for the Future & Maximising Value’ event, run in association with the Sunday Business Post, will focus on the strategies to maximise and realise value and the associated tax implications.

“Clients are always looking to maximise the value of their business,” she said. This may be as part of a plan to streamline operations, develop growth strategies, respond to changing markets or form part of an overall or eventual exit strategy. The key to any of these issues is to address them with well thought out strategies.”

Farrelly identifies the main reasons why businesses might not be focusing on strategizing tactics as getting swamped in day-to-day matters or concentrating on future growth instead of planning maximising the value of their current enterprise.

“Maximising value strategies can be highly effective and add considerable value but to do so such strategies need to be well thought out and planned,” she said. “For example, the sale of a business is a one-off opportunity to crystallise the value that owners have created over many years, or in some cases generations, and it is critical that they get this right. Business owners, including those who have no immediate plans to exit or retire, need to have some degree of awareness of the issues involved.”

RSM, one of Ireland’s top 10 accountancy firms, was established in 1987, with a focus on providing business advice to mid-market businesses. In May 2016, the firm joined the RSM network and became united under one single global brand with RSM member firms across the world.

Led by managing partner, John Glennon in Dublin, the firm has regional offices in Birr, Co Offaly, and Portlaoise, Co Laois, with more than 135 staff and 12 partners. As well as seeing their clients benefit from the growth in the economy the firm has also experienced significant growth in recent years. This growth now means that the firm are looking to recruit up to four new partners in the next 12 months to meet the growing demands of their clients.

To assist clients, from audit & tax issues to management consulting or transaction advisory projects, RSM lead with an end goal of achieving peace of mind for members.

“In order to remain relevant to our clients we need to bring the right mix of technical, commercial and operational expertise to help realise business opportunities,” said Farrelly. “We operate in partnership with our clients, providing pragmatic and honest advice that is tailored to their business. We recognise that what drives our business is talented people to service our clients.”

An indepth understanding of their clients has led RSM to host this seminar, which is open to all interested parties, as more and more challenges are presented in a transient and competitive business climate. Farrelly said these can include the development and execution of strategy, availability of staff, the new General Data Protection Regulation (GDPR) and access to finance to fund growth plans.

“The fall in unemployment rates in recent years has led to a shortage of skilled and professional labour across a number of sectors,” she said. “Many of our clients have been struggling to attract and retain good people and we have been working with them to help solve these problems, using both short term resources and longer-term planning. Companies now need to be very focussed on staff-centric initiatives to attract and retain the best people. This includes providing them with a clear career path that enables them to learn and grow and achieve their personal career objectives.

For many of our middle market clients access to funding for working capital and capital projects is still proving challenging, despite improvements in trading conditions. While the appetite of main stream banks to fund these businesses is improving, it does remain very cautious. We are seeing an increase in the level of alternative funding, including Private Equity funding, coming into play in transactions in this space.”

In response to demand from the SME sector the government have introduced a number of initiatives in recent years including:

  1. Strategic Banking Corporation of Ireland (SBSI) – set up to supply low cost credit to Irish SME’s with an overall fund of €1 bn
  2. Irish Strategic Investment Fund (ISIF) – providing low cost credit (total fund €450m) and equity funding (total fund €300m)
  3. Enterprise Ireland – operate a number of funding options to internationally focussed or export businesses
  4. Microfinance Ireland – set up to provide funding for small start-up businesses

 

Farrelly says that all of these initiatives have proved popular and are vital to support sustained growth in Irish business.

RSM’s ‘Planning for the Future & Maximising Value’ seminar is open to anyone with an interest in this area.

Free registration here

 

*As seen in the Sunday Business Post, 1st July 2018