Preparing the Business Plan

Preparing a Business Plan to presentto lenders, investors, and buyers is essential to building credibility and gaining support for the future. Involving KGI as a 3rd-Party advisor is an excellent investment in ensuring that the plan is accurate, reflects the results of operational activities and changes, and creates a vision of the future which demonstrates value creation.

Lenders, boards' of directors and investors seek an analysis of feasibility by KGI because The KGI System™ has proven since 1984 to be valuable and often results in significant improvements:

The Fundamental Assumptions

• Do the projections connect with operating changes and properly link the three financial statements of cash flow, income statement and balance sheets?
• Are the calculations correct?
• Are the key data points easy to identify and understand?

The Financial Structure

• Does the structure of the lending arrangement make sense or can it be improved?
• Can the company justify additional funding from the lenders or other creditors?
• What are the appropriate covenants and benchmarks for the company?

The Future State

• Does management have a future vision of the state of the business incorporating changes?
• Will management organize the managed changes?
• Does management understand key value drivers?

Lenders and investors know that we structure the business plan so that it shows analyses that are sometimes overlooked, such as properly structured breakeven, contribution margin, and sensitivity analyses.

Typically, KGI does not write extensive, long written plans. Rather, we have developed a process that produces outputs that are compelling and complete. We focus our effortson working interactively with management to generate plans that management intends to and is capable of implementing. We have found that this approach both reduces costs for our services and results in outcomes that are completed faster and are more effective.