The organic growth of a company (the growth secured solely from its own sources) is the most acceptable variant of the growth, but in fact, it is not possible while changing the type of business from micro-entrepreneurship to small or middle-sized entrepreneurship. The exceptions are thereby possible, such as large proprietary loans.
However, they are very rare in practice. In the situation of growth, companies often use the financial leverage provided by the commercial banks, ownership integration (merging of company acquisitions) established on the basis of future market position and positive synergies, and various strategic connections with other companies.
The realisation of financing, in all the above mentioned forms, requires:
- preparation of a complete blood test of a company
- knowledge and experience in negotiations with financial institutions
- knowledge of current money prices according to the rating of the company in need and the financing market
- establishing optimal values and financing forms (aiming at minimization of both currency and liquidity risk)
Parameters that are nowadays being analyzed within financial institutions, together with their interpretations, have greatly evolved, while susceptibility to their further evolution is being present in even shorter intervals. It is precisely this evolution that is happening as a part of an even more rigid policy that requires interventions in terms of professional advisory services, in order to achieve the main goal – to ensure the optimal financial leverage of the company.
- risk reduction when choosing the financing model (currency risk, interest rate risk, operational risk)
- optimal financial cost
- entrepreneur’s considerable time saving needed for the preparation and the implementation of the financing process
- ensuring the adequate financial leverage in accordance with current and potential future needs of the company
- ensuring sustainable growth and enabling the expansion of the company.