Tag Archive for: cash flow forecast

Does your treasury have a digital mindset?

| 25-9-2017 | Patrick Kunz |

 

In an previous article I have talked about the IT changes that make life easier for a treasurer in the future (or now already). In this article I want to talk about the digital mindset of the person using the IT – the treasurer. Treasury is a numbers game. We treasurers use these numbers to optimise the cash or risk of the company. We make money with money. These numbers have to come from somewhere in the organisation and it is usually never treasury itself.

BIG data

Big data is a hot topic in treasury but for treasury it was around longer. The treasurer needs to get their input information for all over the company. Cash inflow from sales, cash outflow from procurement and investment teams, HR etc. All this data needs to be gathered. The digital minded treasurer thinks about optimal ways of gathering this data: automatically. The treasurer starts its day with the actual cash balances and then looks forward. He/She basically needs to predict the future. How great would it be if all this data would be available with the push on a button. An ideal world ? Maybe, but it is possible. Bank statements can be automated to be loaded collectively or in a Treasury Management System. The treasurer starts the day with up to date cash balances, and he has not started working yet as this was automated. He then updates the cash forecast. How? By pushing update in his cash forecasting system. Sounds too easy? True, it took weeks to find out where to find the needed input information and to automate getting this data grouped together and in a structured way. But a digital minded treasurer knows that the data is somewhere in the organisation; it only needs to found and linked to the treasurers information recourses so it is always available. The treasurer only has to check the validity and the quality of the data and see if it needs improvement. In this way the digital minded treasurer can automatically create a cash forecast and continually improve it. A cash forecast should be ready before the second morning coffee. In an ideal world it would be ready with a push on a button. Artificial intelligence makes it possible. The digital minded treasurer is steering it.

Process improvements

The digital treasurer looks at ways to improve its document flows and payments. Not only looking at costs but also looking at how many (manual) interventions are needed. FX deals can be setup to straight through processed (STP) while blockchain would make it possible to improve the speed of payments or document flows globally. Everything is connected, as payments go from a process to straight through and instant it has an immedicate effect on the cash availability and forecasting. While now the bank is the place to go for bank accounts and payments this might not be the case in 10 years. The digital treasury might be able to setup his own bank in the future. By using technology.

The future

The treasurer makes sure that he is on the steering wheel while technology makes it possible for him/her to check his surroundings so he does not crash. A bigger front window makes for a better view forward (forecasting), a higher max speed makes for quicker travel (updating changes in forecasting), adaptive cruise control saves effort on speeds control (automatic updating and AI, STP). The treasurer knows he needs to keep the engine running to keep moving. He also realises that he does not need to be a mechanic to do this; however he needs to be able to tell the mechanics quickly why the car is not moving as the treasurer wants it to be so the mechanic can fix this. Or maybe the digital treasurer might change the car for a plane in the future, or even a rocket?

It is clear that technology and treasury are interconnected. Already now and even more in the future. A treasurer therefore needs a digital mindset to survive and keep up with the information needs of his department and the company as a whole. And it’s not rocket science (yet).

Patrick Kunz 

Treasury, Finance & Risk Consultant/ Owner Pecunia Treasury & Finance BV

 





 

The IT savvy treasurer

Saving on FX deals? Often neglected but potentially a “pot of gold”

How much are you paying your bank?

 

Effectiever cash management; maar hoe?

| 8-9-2017 | Jan de Kroon |

 

Alle functiespecialisatie en goede bedoelingen ten spijt lukt het in veel organisaties, profit en nog-profit, niet of slechts met moeite het verloop van de liquiditeit op korte (en lange) termijn te voorspellen. Dat leidt niet alleen tot sub-optimalisatie maar ook tot frustratie bij alle betrokkenen in de keten. Telkens poppen er vragen op als ‘hoe komt dat?’ en ‘hoe kan dat anders?’. De antwoorden op deze vraag zijn minder ingewikkeld dan je zou denken. Onderstaand enkele praktische handreikingen.

Ownership

Bij een nadere analyse blijkt dat in veel organisaties onvoldoende helder is wie de eigenaar is van een mogelijk cash vraagstuk. Functiespecialisatie leidt ertoe dat financiële staf hierin schijnbaar een verantwoordelijkheid draagt en zich ook als zodanig gedraagt. Dat loopt echter spaak als die verantwoordelijkheden niet ook gepaard gaan met bijpassende bevoegdheden. In de praktijk schort het daaraan. Er ontstaat dan een ‘handel in probleemeigendom’.

Tip: scherp taken, verantwoordelijkheden en bevoegdheden aan en spreek mensen er ook op aan.

Cash awareness

Voor financials is financieel-economische bewustzijn hetzelfde als ademen. Het is er ongemerkt. Voor collega’s buiten de financiële functie is geld niet meer dan een rekeneenheid of een productiemiddel. Men realiseert zich niet echt dat die middelen niet alleen schaars zijn maar ook een prijs hebben. Vaak loont het de moeite om met een paar praktische en herkenbare voorbeelden uit het privéleven (denk aan hypotheeknormen en –rente, de bijdrage voor studerende kinderen of onderhoud aan het huis) de link naar zakelijke belangen te leggen. Zo was ik bij mij thuis heel lang een holding met een grote en drie kleinere maar snelgroeiende werkmaatschappijen. Zelf vooral verantwoordelijk voor concernfinanciering en risicomanagement, maar met vier lastig te plannen entiteiten. Uiteindelijk heb ik de drie kleinste entiteiten maar verzelfstandigd. Van de grootste kon ik geen afstand doen. Ervaring leert dat een verbeterd financieel economisch bewustzijn leidt tot een soepeler cash management.

Tip; investeer tijd in het stimuleren van cash awareness

Feedback en feedforward

De communicatie tussen financiële staf en lijnactiviteiten met invloed op de kasstroom is in veel gevallen sub-optimaal. Er is vaak veel ‘wij’ en ‘zij’ en er lijken tegengestelde belangen te bestaan die er niet zijn. Communicatie beperkt zich vaak tot het functioneel noodzakelijke en de twee werelden begrijpen elkaar niet echt. Omdat we vooral inhoudelijk en via mail communiceren, blijft er een zekere afstand en blijft onbegrip in stand. Realiseer je dat van iedere 100% van een boodschap ongeveer 7% betrekking heeft op de inhoud, 38 % betrekking heeft op toonzetting, klemtoon en stijl. De overige 55% van de boodschap komt over door middel van lichaamstaal. Elkaar ontmoeten of tenminste zien draagt dan ook sterk bij aan het succes van de boodschap. Alleen mailen komt niet veel verder dan die 7 % en bellen komt niet veel verder dan die 45%. Belangrijk is ook te investeren in een dialoog en elkaar scherp te houden. Feedback & feedforward zijn daartoe uitstekende en praktische instrumenten. Vanuit het DNA van de financial zijn we gewend dat een ander zich aan afspraken houdt. Doet hij/zij dat niet dan spreken we hem eropaan. Doet ie het wel of zelfs goed, dan is dat vanzelfsprekend; no further action. Bedenk echter de waarde van een compliment en geef ook eens positieve feedback als men een adequate liquiditeitenplanning levert. Verplaats je bij negatieve feedback eerst in de beleving van de ander en streef naar een co-productie zonder je voor en karretje te laten spannen. Bij het DNA van bijvoorbeeld commerciële en creatieve collega’s hoort dat je niet alleen afspraken moet maken, maar ze er ook aan moet houden. Daarbij helpt feedforward; net voor dat de andere iets moet opleveren subtiel op de radar verschijnen met de vraag of het lukt om op tijd te leveren en of je wellicht nog kunt helpen. De praktijk wijst uit dat dit beter werkt dan, vaak telkens weer, negatieve feedback achteraf.

Tip; investeer serieus in fysieke contacten met andere spelers in de keten en verplaats je met regelmaat in hun situatie

Motivatie

In veel gevallen zijn collega’s die een liquiditeitsprognose moeten aanleveren vooral extrinsiek gemotiveerd. Ze doen het omdat er een procedure is die het voorschrijft. Het goede nieuws is dat je het misschien op tijd krijgt, het slechte nieuws is dat je er weinig mee kunt. Betrokkene heeft immers zijn hart en dus zijn prio’s ergens anders liggen; het helpen van klanten bijvoorbeeld. Belangrijk is betrokkenen vooral ook intrinsiek te motiveren zodat ze herkennen dat goed cash management en het bedienen van klanten wel degelijk hand in hand gaan. Dan is er een win-win en is de prognose niet alleen op tijd maar ook inhoudelijk beter van kwaliteit.

Tip; investeer in de inhoudelijke betrokkenheid en functioneer als co-maker

Vermijd detail

Als financial hebben we de neiging dingen zeker te willen weten en daarmee samenhangend hebben we een grote voorliefde voor detail. Dat begint al bij de budgettering en strekt zich gedurende de planning & control cyclus uit naar zowel verantwoordings- als cashmomenten.

Bedenk dat het DNA van de meeste lijnentiteiten een zeer sterke voorkeur voor hoofdlijnen heeft. Een liquiditeitsprognose met veel detail is om die reden al op voorhand gedoemd te mislukken. Zeker omdat er veelal negatieve feedback volgt als het op detail niet uitkomt. Het voelt bij betrokkenen bovendien als een impliciete controle op een te verwachten realisatie.

Het DNA brengt echter mee dat er vaak sprake is van enig opportunisme in het realiseren van die toekomst. De werkelijkheid is altijd een andere en veelal een wat slechtere.

Tip: vermijd detail en beperk een prognose tot herkenbare hoofdlijnen

Vier successen

Het DNA van collega’s buiten de financiële functie is veelal extravert en wil hetzij winnen het zij klanten een plezier doen of leuke dingen bedenken. Door efficiënt en effectief cash management wordt op kosten en rente bespaard en zo levert de financiële functie zelf een bijdrage aan het resultaat; zij het niet het operationele resultaat in hoofdzaak. Het is de moeite waard de opbrengsten van beter cash management niet alleen zichtbaar te maken, maar ze ook te delen. Stel de vraag hoeveel meer omzet een commerçant kan ophalen als hij een gunstiger betaaltermijn kan voorstellen, respectievelijk wat het doet met de kostprijs als de rentecomponent kleiner is in een prijsgevoelige markt.

Tip: organiseer samen feestjes en vier successen.   

 

Jan de Kroon

Owner & Managing partner of Improfin Groep





Meer artikelen van deze auteur:

Kunnen banken zich opnieuw uitvinden of is het inderdaad Kodak revisited?

Uitgelicht: financiering binnen de keten

Building a cash flow forecast model

| 5-9-2017 | Lionel Pavey |

 

No company can sort out its funding and investment requirements without having a cash flow forecast. This gives valuable insight into potential bottlenecks where there is a shortage of liquidity that needs to be addressed in order that the company can continue its day-to-day operations whilst optimizing its cash position.

2 methods

There are 2 methods to be a model – indirect and direct.

Indirect uses the balance sheet and, as such, will contain non-cash items like depreciation and bad debts. Direct uses the projected receipts and payments shown at specific moments in time.The indirect method is handy for long term forecasting beyond 1 year as it shows the money required to finance capital intensive investments and projects.

The direct method is essential for short term analysis up to 1 year as it shows the money for operational activities and working capital. As a cash flow forecast is mainly used for the direct needs of a company, it is prudent to use the direct method.

What steps need to be taken to transform a budget into a cash flow forecast via direct method?

  1. Adjust the budget to remove all non-cash items
  2. Analyse historical data to obtain seasonally adjusted cash flows for operational activities
  3. Integrate the standard payment terms for creditors and debtors and adjust the cash date
  4. If there are no clear trends within the month, spread the amount evenly over the month
  5. Where pay dates are hard – wages, taxes etc. input these into those dates
  6. Calculate the operational cash flow
  7. Incorporate expected investments
  8. Incorporate existing financing obligations (principal and interest)
  9. Never forget the BTW (VAT)!
  10. Analyse the forecast for shortfalls or periods of excess liquidity

As this is an exercise that incorporates all departments within a company, it is essential that full support is given by management to the design and implementation of the process. No one person can collect and collate all the data – this requires continuous input by controllers and treasury staff.

How to design the forecast?

  1. Establish clearly defined criteria and processes
  2. Define the role and cooperation required by all parties, whilst highlighting the benefits
  3. Ensure commitment from all parties
  4. 1 data source only – data must be presented in 1 format on agreed dates
  5. Structure – all data is delivered on time to a central point, normally the treasury
  6. Keep it simple – do not over design the model
  7. Give constant feedback to all stakeholders so that they can see how their contributions matter
  8. Question the validity of the data – is it created by a bottom-up approach or has a simple top-down approach been taken without looking at the individual components that make up the forecast
  9. Stress test the data – build simple scenarios (best and worse) whilst making simple assumptions such as debtors extending payment times, fall in sales, increase in demand etc.
  10. Never sit back and think that your task is done. This is a living model that needs to be constantly monitored and adjusted where necessary
  11. Do not punish – many people are reluctant to provide forecasts out of fear that they will be wrong. Use the model to educate and focus stakeholders onto the reality of their cash positions as opposed to their bookkeeping positions. It is all about timing
  12. Remember – if you do not have it, you can not use it. There is nothing more harmful for a company than running out of cash, regardless of what the company accounts are telling you!

If you want to know more about this topic you are welcome to contact me.

Lionel Pavey

 

Lionel Pavey

Cash Management and Treasury Specialist

 

 

 

Business intelligence for cash flows & cash positions

| 10-8-2017 | Treasury Intelligence Solutions GmbH (TIS)  | Sponsored content |

How do strategic professionals decide on the best path to success for their company? The key for strategic finance professionals and the best path to success lies in transparency and real-time reporting across company-wide cash flow and liquidity levels, bank transactions, customer and supplier relations and working capital.

When cash flow visibility is the lifeblood of your company, you want full control and knowledge. Direct access to insights on profitability and potential business risks allow you to make better decisions based on solid business intelligence that is accessible anytime and anywhere. Companies now can experience the power of the Business Discovery Manager – a business intelligence module within the TIS cloud platform. Supplier, salary and treasury payments can be easily analysed along with cash flows, liquidity and working capital via easy-to-use dashboards and reports. The tool, enhanced through state-of-the-art BI technology, enables users to access all strategic insights in a single, flexible, web-based and multi-bank, multi-ERP capable platform, available 24 hours a day from anywhere in the world.

Do you want to find out more about this interesting topic?
Do you want to discover the benefits and functions of the Business Discovery Manager in detail?

 

Treasury Intelligence Solutions (TIS)

You can request the TIS Factsheet via the red button.

 

Succesful breakfast session at Proferus

|21-6-2017 | Proferus | treasuryXL | Sponsored content |

We reported earlier that Proferus BV, Amsterdam organised a breakfast session, the first of a series, dedicated to CFOs, Senior Cash Managers and Treasures, this time focusing on Cash Flow Forecasting. The session has taken place yesterday and we want to share a short impression with you.

In their first session Proferus focussed on sharing best practices aound the topics cash forecasting strategies, direct vs indirect approach, the need for cash flow forecasting and forecasting software from CashForce. Nicolas Christiaen,  founder of CashForce gave real life examples of how CashForce is deployed to help companies efficiently deploy cash force forecasting for treasury management.

During the meeting there was a livley discussion about the need of cash flow forecasts and the difference between the direct and indirect method. Ideas were shared as well as experiences and practical examples. The presentation of the cash forecasting system of Cashforce by Nicolas Christiaen was well received and very interesting.

The breakfast session had a good attendance and positive reactions! Proferus already started to plan and organize the next meeting!

If you want to know more about the breakfast session you can download their presentation: [button url=”https://www.treasuryxl.com/wp-content/uploads/2017/06/Presentatie-liquiditeitsplanningen-Proferus-1-2.pdf” text=”View presentation” size=”small” type=”primary” icon=”” external=”1″]

treasuryXL & Proferus BV

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Breakfast Session: Cash Flow Forecasting

| 2-6-2017 | Olivier Werlingshoff | Proferus BV | Sponsored content |

 

Proferus helps companies enhance their forecasting processes to fully take advantage of new opportunities and to get in control over their cash flows. Proferus will host their first breakfast session of a series dedicated to CFOs, Senior Cash Managers and Treasures, this time focusing on Cash Flow Forecasting.

Proferus

Proferus has expertise developing tailored solutions to improve cash management and treasury processes and has a strong partnership network to help companies introduce new tools and techniques to achieve their goals.

Breakfast Session

On June 20th, Proferus will host the first breakfast session of a series dedicated to CFOs, Senior Cash Managers and Treasures, this time focusing on Cash Flow Forecasting.

Content

In this session Proferus we will focus on sharing best practices and a round table about the following topics:

  • Cash Forecasting strategies Direct vs Indirect approach
  • Round table The Need for Cash Flow Forecasting
  • Cashforce Cash forecasting 2.0

Joining us in this breakfast session, Nicolas Christiaen Founder of CashForce will give real life examples of how CashForce is deployed to help companies efficiently deploy cash force forecasting for treasury management.

Date & Time

Tue 20 June 2017, 08:30 h  – 10:00 h
Add to Calendar

Location

Proferus
87 De Entree
1101 BH Amsterdam-Zuidoost
View 

Proferus would be pleased to welcome you.
If you want to register for the event please click on this link.

 

Better Decisions through real-time Reporting: Business Intelligence about Cash Flows & Cash Positions

|17-5-2017 | Joerg Wiemer | TIS | Sponsored content |

How do strategic professionals decide on the best path to success for their company? The key is in transparency and real-time reporting. If it comes to the responsibility of the treasurer or financial professional this means deciding about company-wide cash flow and liquidity levels, bank, customer and supplier relations and working capital.

When cash flow visibility is the lifeblood of your company, you want full control and knowledge. Direct access to insights on profitability and potential business risks allow users to drive better decisions based on solid business intelligence, accessible anytime and anywhere.

 SCENARIO

Better decisions: Companies now have the power of the Business Discovery Manager – a business intelligence module within the TIS cloud platform. Supplier, salary and treasury payments can be easily analyzed along with cash flows, liquidity and working capital via easy-to-use dashboards and reports. The tool, enhanced through state-of-the-art BI technology, enables users to access all strategic insights in a single, flexible, web-based and multi-bank, multi-ERP capable platform available 24 hours a day from anywhere in the world.

 

Source: TIS Treasury Intelligence Solutions GmbH

Challenges

You can’t manage what you don’t measure

  • A lack of visibility over liquidity, working capital and cash flows at the C-level, in treasury, controlling, accounting, Sales and
    purchasing departments.
  • No transparency regarding bank relationships, liquidity positions and account turnover
  • No transparency regarding customer and supplier relationships, as well as incoming and outgoing cash flow

TIS Business Discovery Manager

Company-wide unified automated analysis of cash flow, liquidity and working capital in various departments of Corporate headquarters and in local subsidiaries

  • Multi-bank capable
  • SAP ERP integration via certified plug-in; connection to any ERP, HR and treasury system
  • State-of-the-art BI technology and functionality in a single SaaS solution
  • Support of customer-specific BI tools; support of self-service BI functionality
  • Business Intelligence as a Service: Ready for use throughout the company within seconds without any complex IT projects
  • No changes to bank or system landscape required; the solution is flexible and easily adaptable
  • ISO 27001 certified for data security

 Customer value

  • Better decisions based on complete visibility of liquidity, working capital and cash flows
  • Ability to quickly answer essential questions without the need for any extensive IT projects

Your benefits

C-Level executives:

  • Instant reports about cash flow performances (total of all inflows and payments) of the various local subsidiaries compared to one another over a specific time period
  • Identification of corporate risks and value-adding activities to drive future growth
  • Tangible insights to support internal and external audits
  • Power and data to provide strategic advice to sales and procurement departments

Treasury and controlling teams:

  • Answers to key questions, such as: How much liquidity is available at which bank? What is the net cash flow for a specific currency over a specific time period for a group of companies (natural hedge)? How much working capital does a local subsidiary require in a specific time period?
  • Increased compliance, transparency, and more efficient processes paired with reduced costs

Accounting teams:

  • Visibility of when a supplier was paid, or when a customer paid a local subsidiary over a certain time period
  • Insight into the value of inflows made by customers via various bank accounts and ERP systems over a specific time period

Sales teams:

  • Insight into the value of inflows made by customers and the overall payment behavior of the customer base

Purchasing teams:

  • Transparency across values of overall payments to a supplier via various bank accounts and ERP systems over a specific time period

Source: TIS Treasury Intelligence Solutions GmbH

Business Discovery Manager: never struggle to answer any of these business-critical questions again

 

joerg wiemer

Joerg Wiemer

CSO and Co-Founder of TIS

 

Treasurers to be the strategic super-heroes for their CFO

|3-4-2017 | GTNews | Lionel PaveyUdo Rademakers |

Treasurers to be the super-hero for their CFO? We found this article headline on GTNews.com so intriguing that we asked our experts Lionel Pavey and Udo Rademakers to comment on it. According to the article the role of the treasurer has to be re-evaluated due to the fact that deal-making (figures of mergers and acquisitions have increased) is high on the global agenda. Traditionally treasurers focussed on informing the C-Suite and the board and integrated systems and processes after decisions about a deal were made.  Treasurers started to address this issue, which led to a new role of the treasurer, in fact a much more strategic role. The treasurer was no longer a risk manager, but also a ‘business change enabler ‘.  GTNews states: ‘The treasurer who opens this door is truly aligning themselves to the needs of the chief financial officer (CFO).They’ll be a superhero.’

Expert Lionel Pavey added some valuable information on the 4 different stages of a M&A proces.

Targeting

  1. Examine the different methods of payment – cash, debt, equity
  2. Discretely ascertain interest rate levels if using debt
  3. What are the effects of additional debt on the existing bank covenants and financial ratios
  4. Complete takeover or just buying a business unit or division?

Negotiating

  1. Examine the cashflow forecast of the target
  2. Examine any documentation on outstanding loans
  3. Existing pledges – Letter of Credit, Bank Guarantees, financial contracts, contingent liabilities
  4. Outstanding debtors, creditors, taxes etc.

Closing

  1. Detailing the bank accounts
  2. Either merging the bank accounts or creating new accounts at the time of closing
  3. Agreeing all bank balances and outstanding claims
  4. Receiving detailed cashflow forecast for the first 2-3 months after closing date
  5. Combining the new cashflows with the existing forecasts
  6. Arrange any agreed financing

Integration

  1. Close all existing facilities and services that will be no longer used
  2. Ensure the new data is present in the book keeping system
  3. All counterparties are informed of new bank accounts
  4. All authorized personnel have access to new banking systems

Expert Udo Rademakers states:
The posting at gtnews.com  points out where treasurers could add value in M&A activities. Unfortunately, in too many cases, treasurers had been brought into M&A transactions rather late: at a stage where the acquisition already had been concluded and where the treasurer only gets involved in “getting the deal done”.

As pointed out in the article, this is often a missed chance for the company and also for the treasurer of not adding more strategic value. Apart from that, the sooner the treasurer gets on board, the better the company can prepare for this kind of rather complicated transactions. It enabled the treasurer as well to act on a tactical level in order to support the M&A transaction in a cost efficient and well documented way.

What strategic value could the Treasurer bring?

  1. value the target company or the combined entity as a whole based on CF projection models
  2. evaluate the capital mix (cash, debt, equity)
  3. evaluate borrowing capacity/credit lines (low risk, best price)
  4. evaluate the country risk
  5. creating the funding flow overview and analyze this (timing of transactions)
  6. evaluate credit- and forex risk (natural hedging possibilities, consider to pay as much as possible from     “restricted countries” in order to decrease your restrained cash)

If the treasurer has been on board for the strategic part, he is well informed and able to manage the tactical part systematical as soon as the effectuation of the transaction takes place.

The treasurer needs to arrange (if applicable):

  1. temporary limit increase with banks
  2. forex transactions (increase of in- and external limits if needed)
  3. time critical payments to agencies, funding parties, seller, capital injections etc. : validate account information, prepare correct timing of the flow (cut off times, correct payment details and descriptions, etc.)
  4. documenting of all transaction in a systematic way and liaise with all in- and external parties involved.

Especially in high demanding environments where one transaction takes place after the other, mistakes will be made and processes might not be well documented. Obviously this could lead to higher risk and additional costs and lots of additional (correcting) work afterwards. Having a well prepared, skilled treasurer on board could avoid this.

Hence the comparison with a superhero…

Conclusion

Involve the treasurer from the first step
Draw up a detailed project plan for M&A and ensure that it is signed off by Board of Directors
Implement project plan for every M&A
Identify all costs linked to M&A
Highlight any cost savings and/or efficiencies

Lionel Pavey

 

Lionel Pavey

Cash Management and Treasury Specialist

 

 

 

Udo Rademakers

Independent Treasury Consultant & Interim Manager

 

 

 

 

Waarom ongevraagde biedingen waardevol zijn

| 17-3-2017 | Victor Macrae |

 

Unilever en Akzo Nobel hebben een resoluut ‘nee’ uitgesproken tegen de ongevraagde biedingen van buitenlandse opkopers. Publiek en overheid hebben verontwaardigd gereageerd over verkwanseling van het Nederlandse erfgoed. Maar de ongewenste avances hebben een groot voordeel: de door de acquisitiekandidaten voor de toekomst geplande strategie wordt nu versneld uitgevoerd. Hierdoor wordt de waarde die in de bedrijven zit al eerder ontsloten.

Unilever

Unilever heeft veel geïnvesteerd in haar merken en in duurzaamheid. Verkoop van de onderneming stond nooit ter discussie. Sterker, Unilever is zelf een bedreven bedrijven-opkoper. Hiermee is Unilever echter ongewild een ideale overnameprooi. Door de stabiele cash flow kan een overname met goedkoop vreemd vermogen worden gefinancierd. Vervolgens kan flink in de kosten worden gesneden. Beide krikt het rendement op eigen vermogen flink op.

Rendementsverbetering in plaats van alleen duurzaamheid

Er was al enige tijd gemor onder Angelsaksische aandeelhouders dat Unilever teveel aandacht zou besteden aan duurzaamheid in plaats van aan het verhogen van aandeelhouderswaarde. Het bestuur van Unilever heeft na de bieding aangekondigd haar focus te verleggen naar rendementsverbetering. Akzo Nobel reageerde met de mededeling dat het overweegt de divisie Specialty Chemicals van de hand te doen. Volgens de Raad van Bestuur van Akzo Nobel lag deze stap al in de planning, maar is het door de omstandigheden versneld.

Stap voorwaarts

Zowel Unilever als Akzo Nobel heeft als reactie op de ongewenste avances een sprong voorwaarts gemaakt door zelf het heft in handen te houden en de toekomstige strategie nu al versneld uit te voeren. De aandeelhouders kunnen deze stap duidelijk waarderen: beide aandelen werden na de toelichting van de RvB beloond met een flinke koersstijging. Wellicht een hint voor andere Nederlandse ondernemingen: als u een versnelling in de uitvoering van uw eigen strategie te weeg wil brengen, doe dan net alsof u een ongevraagd overnamebod heeft ontvangen.

Victor Macrae

 

Victor Macrae

Owner of Macrae Finance





Meer artikelen van deze auteur:

Is this the solution to solving the derivatives mis-selling issue?

Fx volatility creates opportunities

 

Cash forecasting 2.0

| 8-3-2017 | Nicolas Christiaen | Cashforce | sponsored content |



Cash forecasting has been a hot topic in 2016 and it looks like it will keep this status in the years to come.  As Cash Specialist, I’m frequently asked about my vision on this subject. About a month ago, I presented my thoughts to an audience of Group Treasurers & CFOs at the ACT Smart Cash conference in London. During the Q&A, I was asked an intriguing question: “How does a cash management platform, such as Cashforce, differentiate itself from old school Treasury Management Systems in terms of cash forecasting?”

TMS vs. Cash Management/Forecasting platform

Classic Treasury Management Systems (TMS) are focused on inputting, maintaining & managing complicated financial instruments and managing bank connectivity. In other words, they focus on cash optimization from the treasury side.
Cash management & forecasting platforms, on the other hand, focus on cash optimization from the business side. Hence, they typically connect to a company’s ERP systems, in which you’ll find 90% of the company’s cash flows.
And guess what, it’s this refreshing vision on cash optimization that is now attracting the attention by more and more Corporate Treasurers worldwide: they call it “connecting treasury with the business”.

Difference No 1: Transparent cash forecasting

With a classic TMS, a Corporate Treasurer will typically consolidate cash forecasts from the different OpCo’s,  which are already consolidated from the underlying business transactions. So, there is no drill-down available into the business drivers, no assurance on the quality of the data/input/manipulations. This blurs a treasurer’s view on what’s actually happening on the business side, taking away the cash visibility into the company’s different OpCo’s.  Full drill down isn’t offered by a classic TMS due to two main reasons:

  • It is simply not designed for carrying millions of transactions on a daily basis, while cash management/forecasting solutions use a ‘big data’ approach and have built-in engines to process millions of transactions daily.
  • Connecting to each single ERP requires deep knowledge of each of these systems (to avoid long implementation times) and traditionally, Treasury Management Systems didn’t have a need to develop these connectors.

 Difference No 2: Collecting the data in a smart way

One of the pain points often linked to Cash Forecasting, is the lacking ability to merge all relevant data and apply smart logics to it. Indeed, it might be a challenge to connect to all data sources and, at the same time, to do this in a smart way. At Cashforce, our reaction to this issue is twofold: A smart logics engine takes care of the forecasting algorithms, while easy connections to ERPs and other systems (like HRM, CRM..) ensure the continuous supply of rich data.

Defining and applying smart logics are often a challenge to overcome and have an enormous impact on the accuracy of the cash forecast. For example, well-defined smart logics help you to better estimate actual payment times and hence improve the accuracy of a forecast. A TMS system often lacks this powerful ability and has no built-in smart engine for forecasting rules.

Difference No 3: Cash saving from the business instead of treasury optimizations

Finally, driving action from forecasts should be the main objective. Intelligent simulation engines enable companies to consider multiple scenarios and measure their impact. This gives users the power to report on cash saving opportunities and compare options to ultimately pick the better one. As a result, finance departments can be turned into business catalysts for cash generation opportunities throughout the company. In contrast, Treasury Management Systems are not designed to perform complicated business-driven cash simulations.

Complementary or Competitors?

New, often innovative cash management platforms, like Cashforce, are complementary to a TMS and tend to bring a lot of value in working capital intensive businesses. They are complementary, as they have a different focus: Treasury Management Systems look at the entire treasury spectrum in order to improve treasury processes. Cash Management/Forecasting platforms start from the business and want to enable finance departments to become a strategic partner on one of the key growth indicators, cash. On the other hand, for smaller companies, these platforms might be a good alternative for an often expensive TMS, when only limited financial instrument management functionality is required.

Nicolas Christiaen

Managing Partner at Cashforce