Slides of the session I handled for SMEs in Vijayee Bhava Alumni Association on 17th Nov 2017. Managing finances & growth (including the raising of investments or M&A) are built on certain fundamentals. Little changes in seemingly trivial matters make a lot of difference.

1. KANNAN SURENDRAN
MANAGING DIRECTOR, FINLEAD

2. Managing Finances
Managing Growth
Business Model & Valuation
Compliance, Internal Control &
Financial Reporting
Raising Finance
Seeking Equity Investments
Strategic Partnerships (M&A, JV etc.)
■
■
■
■
■
■
■

3. Working
Capital
Allocation
of funds
Balance cost of
processes &
capital efficiency
Information
Systems
Margins

4. Project your growth
in financial terms
Blind growth v Calculated growth
Credit risks
Ward off risk of insolvency
Strategies for thin capex
until certainty
■
■
■
■
■
Most companies fail
because of the inability
to manage growth!

5. Many SME businesses do not have a value significantly more
than the cash/assets they have!
What is your business model,
positioning & value proposition?
Does your business model
generate value?
Do you know what your
business is worth?
Do you know the valuation
drivers of your business model?

6. Do you value compliance?
Forget growth and scale-up
if you don't!!
How good are your
internal controls?
Balance Sheet, Profit & Loss
Account – Is it true & fair?
Neat Capital Structure –
Consolidate businesses
under a single holding.

7. Bootstrapping & being
frugal important;
Know your personal
break-even & solvency;
Know your risks & returns –
decide on what capital do you need!
Know your ROI & Cost of Capital;
Unbiased & continuous review of
■ possibility of impairment of investments;
■ current assets to current liabilities

8. Right time, Right amount,
Right dilution & Right Investor.
Is your business investible?
Determine – your stage,
ticket size, potential fits.
Understand the fund raising
process - fund raising is
a full time job.
Scalability, ROI &
Exit possibilities

9. Co-operation with Other companies
■ M&A – partial or full
■ Joint Venture
■ Other Collaborations
Research your space thoroughly and continuously.
Valuations for M&A.
Understand the M&A/Transaction process
Strategic Partnerships
are driven by Synergies.

10. FinLead International Services Private Limited,
#17, Geo Infopark, Infopark, Kakkanad,
Kochi- 682030, Kerala, India
www.finlead.in www.coneyfinlead.in www.logiticks.com
Kochi • Bangalore • Amsterdam • Rotterdam • Seattle
kannan@finlead.in
+91 98461 72879