Advisory / Business plans and IBR

Business plans and IBR

The Business Plan is a document that illustrates management’s intentions regarding the company’s competitive strategies. It consists of a series of guidelines to be followed for the achievement of objectives, the evolution of key value drivers and expected results.

Its development, through a shared path of awareness, allows the company to focus on creating value in the medium to long term (3 to 5 years).
At 3XCapital we support companies that want to study the prospects of their business, both for internal controls and for specific activities that require a multi-year plan.

The business plan can be divided into three main sub-plans: Strategic Plan, Operational Plan, Financial Plan.

  • The Strategic Plan identifies both the positioning obtained by the company as a result of past actions, and the choices declared by Management regarding the new objectives for dimensional and functional growth, as well as the role that the company intends to play in the competitive market arena. The analysis of competitors also plays an important role within the strategic plan, aimed at understanding the differences between the customer and other companies in the sector (business, income, financial, etc.).
  • The Operational Plan highlights the main directives through which the Strategic Plan can be implemented; it establishes the actions that will enable the realisation of the “strategic intentions”, indicating the economic and financial impact and the estimated timing of each action; it also describes the future investments; the organisational impact of the individual actions; any changes to the portfolio of products/services offered to customers; the conditions and constraints that may affect the feasibility of the actions.
  • The Financial Plan contains the assumptions underlying the development of revenues, direct and indirect costs, financial charges and taxes, as well as the assumptions underlying the evolution of equity, financial and working capital structure. It also includes 3 or 5 year income statements, balance sheets and cash flows.

Independent Business Review

The Independent Business Review (“IBR”) is an independent opinion on the plausibility of a company’s commercial, organisational and financial development. The aim of this activity is to assess the reasonableness of the economic-financial plan prepared by the company’s management.
3XCapital offers the possibility to carry out Independent Business Reviews, typically requested by credit institutions that want a third-party view of the company’s strategies and results of the plans prepared.

Main activities

  • Analysis of the market/strategic positioning and of the main objectives and synergies to be achieved
  • Management of negotiations and participation in the most relevant meetings
  • Economic and financial assessment of companies and of the operation
  • Carrying out of due-diligence, also on-site
  • Project management of the acquisition process, with constant dialogue with all the professionals involved
  • Assistance during the integration period