Cash Flow, ROI Analysis, Contract Analysis, and Business Plans

Cash Flow

Cash is king for all businesses, small and large. While mostexecutives and business owners  understand their P&Ls, many do not understand fully where their cash goes.

Common cash hogs are inventory and accounts receivable.

Businesses that are growing quickly can be very profitable yet have negative cash flows.

ROI Analysis

All business decisions should be made based on Return on Investment (ROI) analysis.

In particular, Internal Rate of Return (IRR) is a very effective tool for looking at the return  on a series of investments and the resulting cash flows.

Risk also needs to  modeled into an ROI or IRR calculation using an expected value methodology.

Common risks which are often not fully considered include: warranty, IPR indemnification, product liability, and supply chain disruption.

Contract Analysis

Manufacturing contracts, often referred to as Manufacturing Services Agreements, or MSAs, are very specialized contracts that define which party takes what risk. Templates from the large contract manufacturers often contain hidden land mines, especially around inventory and the dreaded purchase price variance, or PPV.  Zebulon Solutions has extensive experience analyzing and negotiating MSAs, from both sides of the table.

Business Plans

Many of Zebulon Solutions’ customers, especially in the clean-tech sector, are startups and other companies who periodically need to raise capital, either via an equity offering or debt or a combination of the two.

We can provide the financial analysis as well as support for the high level business plan generation.

 

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