Convendia

Our company was born with a simple initial concept learned by its founders, namely that most companies struggle tremendously with joined up management information and decision making. Often the revenue recognition and cash impact of potential new business or partner or royalty agreements is not fully understood even by boards. On the other hand, to get a good company valuation a board needs to help investors go beyond the marketing successes and understand what expected new business or agreements really mean for revenue recognition in the current and future years, revenue growth, earnings per share and future cash generation of the business.

All companies look at efficiency gains and at ways of reducing costs, but sometimes it is hard to analyse properly the effect of lower staffing levels or greater automation on revenues. If revenue earning projects must be slowed down or stopped as a result of cost cutting, this needs to be understood. On the success or otherwise of this interdependent forecasting depends not only the achievement of expected profitability and earnings per share, but also the company’s future cash flow. Every company likes to manage cash carefully, but for some companies that analysis of cash flow really matters.

For many companies, payroll costs are reasonably predictable as is revenue from existing contracts, but much else needs to be forecast. Putting more rigour into the “what ifs” of new business, cost control and working out ranges of impact on revenue, profitability and cash flow, and above all doing it efficiently and quickly, is what we offer to our clients.