financial advisory

The best vision is insight. Malcolm Forbes

Financial management is concerned with all aspects of a business' financial decisions and these decisions will directly affect the business' overall performance. It includes the long-term raising of finance and the allocation and control of resources with the aim of maximising shareholder(owner) return.

Through our financial advisory proposition, PK Mwangi Global Consulting aims to work with small and medium-sized enterprises (SMEs) and corporate clients in key financial aspects of their businesses. In considering the long-term plans of their businesses, we help our clients identify and implement their long-term financial objectives.

Using our proprietary tools that capture the client’s positioning in the market and ascertaining a score to this we are able to model, through risk simulation and appropriate performance criteria, the future economic performance of both established and start-up firms. This is key for them in accessing competitive financing from both equity investors and commercial lenders. Clients on the sell-side are able to assess the credit-worthiness of their customers thereby helping to inform their business decisions. This multi-tier application model also allows us to cater for a whole range of other client needs.

PK Mwangi Global Consulting therefore prides itself in its versatility as a closely-knit firm able to combine flexibility of approach with a value-for-money service well within the budgets of small and medium-sized firms while meeting the more complex demands of larger corporate clients. 

Give us a call or email us to find out how we can best help you achieve your financial objective(s).

Service Offering

Bookkeeping Services

 We perform day-to-day book-keeping services outsourced to us by clients thereby significantly reducing their administrative burden, IT and finance staff costs and allowing them to concentrate on their core business. We work to understand the dynamics of the client’s organisation and provide management with quality and accurate information vital to the running of their business. 

Budgeting & Forecasting

 We employ thoughtful and rigorous analyses to enable us offer valuable information to our clients providing management with forecast preparation techniques and tools to assist them in their decision-making.  We use driver-based “what-if ” modeling to extrapolate the business impacts of financial, operational or capital projects for our clients. 

Business Review

 We perform tailored business reviews either for the business itself or for external stakeholders to ensure that these understand the reasons for underperformance or to attest to reported performance. This independent assessment helps clients get a clearer picture of business performance and explore available options.

Business Valuation

     Business valuation is a set of procedures used to estimate the economic value of an owner’s interest in a business and is used by market participants to determine the price they are willing to pay or receive to perfect the sale of a business. We analyse the client firm’s market position, asset base, financial performance and growth projections and apply financial models to this information to arrive at a robust valuation figure. 

Capital Budgeting

 Capital budgeting is a process used by companies to both evaluate and rank potential capital expenditure as well as identify the appropriate sources of the funding. The goal of capital budgeting is therefore to select those investments that have the best chance of generating returns that exceed the firm’s cost of capital. We assist the client perform proper capital budgeting and forecasting techniques to assist them increase the probability of long-term success. 

Corporate Reporting

 Understanding the financial status of the business and making appropriate decisions depends on information that is both accurate and timely. We compile and maintain client financial records based on International Financial Reporting Standards (IFRSs) or local Generally Accepted Accounting Principles (GAAPs) including completing accounts disclosure notes, providing technical accounting advice and liaising with external auditors.  

Cost Accounting

     Management accounting is a critical aspect of a company’s internal decision- making process enabling internal accounting systems to provide targeted information such as key value-drivers and costs.  We advise clients on the identification of cost drivers and associated apportionment metrics as well as provide analysis of cost behavior while facilitating  the development of costing and pricing models to simulate the impact of activity growth or reduction. 

Cost of Capital Analysis

         Many companies destroy shareholder value by investing below their cost of capital. Cost of capital analysis considers both the costs incurred at the initial capital raising stage and those costs that are ongoing.   We employ a  range of techniques including discounted cash flows in our analysis. In deriving the appropriate discount rate we make a full assessment of all pertinent risks and market factors which would influence the cost of capital including wider country-specific factors. 

Distressed Companies (Turnaround Strategies)

 Our proprietary tools help us identify and zero in on aspects of the firm that destroy value and lead to the threat of business closure. The holistic approach we adopt analyses all aspects of the business- strategy, operations, IT, finance, investment and HR utilising a score-system to identify the root cause(s) of business stagnation or decline. We then advise the client on how the business can be turned around to maintain an optimal debt level, deliver profit and manage key stakeholder commitments. 

Due Diligence Reporting

 We endeavor to check all assumptions- strategic, operational, financial and commercial, involved in a financing deal thereby providing peace of mind to both investor and/or commercial lender through an analysis and validation of the said. Using a proprietary risk model we ensure that client or third party projections of revenue and future cash  flows are robust and that the assessment of market conditions and client positioning is adequate.  

Financial Management

  We work with client management providing them with independent advice and support to develop and optimise their finance operations in order to meet the ever-changing realities of their business environment. We leverage our entire resource-base to develop solutions for the client with the aim of integrating their finance function into the broader strategic process.  This is achieved by developing detailed financial modeling to ensure alignment of strategic financial plans and operational delivery. 

Hedging Practices

 We perform analyses of clients’ derivatives and structured finance activities involving hedging effectiveness, economic substance, credit and interest-rate market involvement, foreign exchange transactions and equities as well as produce local GAAP/IFRS-compliant hedge accounting reports. Applying our economics and accounting expertise we are able to uniquely address the client’s problems while assessing their strategic use of derivatives and structured finance. 

Risk Analysis & Management

 As risks associated with market volatility, pricing pressures and variations in market performance unsettle the business landscape, these forces serve to stimulate competition and create opportunities. We initiate rapid assessment and identification of opportunities to integrate and improve the client’s risk practices. Underpinning our risk capabilities are our strengths and skills in day-to-day operations, management and strategic decision-making. 

Working Capital Management

     Changes in working capital cycles (customers, suppliers and inventory) brought about by industry-specific realities mean that many approaches to optimising working capital do not sufficiently address core process chains in their entirety. We make sure that entire core process chains are considered in the optimisation strategy including the adoption of an approach that facilitates cross-divisional coordination. 

More research & analysis

Africa Multinational Corporations- Navigating currency risk

 When implementing its strategic plans (regional expansion and M&A activity) and/or financing its operations the multinational corporation (MNC) has the option to either borrow locally in the home market or borrow internationally in the export market or beyond... 

To read article see below

EABL: An analysis of its business and financial performance

 Established in 1922 and with its headquarters in Nairobi- Kenya, East African Breweries Ltd. (EABL) is a leading branded alcohol manufacturing company in the East African region engaged in the marketing, brewing and selling of alcoholic and non- alcoholic drinks as well as the manufacturing of glass containers. Majority owned by Diageo, it consists of a number of subsidiaries.

To read article see below

Capital budgeting and the Small and Medium-sized Enterprise

 The allocation of capital in small and middle- sized companies is as important as it is in large corporations. However, given their lack of access to capital markets, capital budgeting is often more important to SMEs because the funds necessary to correct investment mistakes may not be available...

To read article see below