We were recently involved in the due diligence work for a client, who wanted to expand his existing business. By analysing the sales, invoices and the overheads of the business in question, we were able to see why the business was not as profitable as it should have been.
By applying our client’s business model to the company he was buying, we were able to forecast the potential profitability of the company, so that our client was able to purchase the company at a reasonable price.
With so many of our clients, the sight of reports containing thirteen columns of numbers makes their eyes glaze over. As we have an obligation to talk to our clients about numbers, we try and present the results in a graphic form, either as pie charts or bar charts, wherever possible.
One of our clients was so pleased with our graphic representation of his accounts, that he complemented us on the fact that “for the first time in 30 years, he actually understood a set of accounts” and referred to our pie charts and bar charts as his “Janet and John pictures”!