FGI’s Post

#illumio #zts delivers a net present value (NPV) of $10.2 million 🤩 Why should we care? Net Present Value is a powerful method when deciding whether a given expenditure is worth it. Yet, most sellers don’t use it. Simply put, NPV is a capital budgeting method used as part of a cost benefit analysis to determine the profitability of an investment. So why NPV? Simply put, it’s usually the #CFO’s first choice for analysing capital expenditures. 💰🤑 The reasons?☝️ it takes into account the time value of money, discounting future cash flows to obtain their high value right now✌️it considers a company’s cost of capital or other hurdle rate. 3️⃣it provides an answer in today’s dollars, thus allowing for a comparison between initial cash outlay with the present value of the return. The answer to why we should care about NPV is clear. In an economy where budgets are being rescinded, those who can demonstrate a clear return on investment will win 🥇 #valueselling #financialintelligence Bob Fitzpatrick Raghu Nandakumara

When margin expansion is addressed as a lever for growth, pricing is frequently under-served. "where a pricing program is likely to succeed, we typically see a 3 to 7 percent margin improvement for PE portfolio companies" #privateequity #valuecreation #b2bmarketing #gtm #pricingstrategy https://lnkd.in/gB8PSMBU

Too often excessive resources, time and $$$ are allocated to the product and not to the production facilities. Both a have part to play in any manufacturing based organisations, with the balance being important in the early days of the financial modelling. #prefab #mmc #IDandC #manufactring #finances #netmargin #profit #grossmargin #businessplanning #offsitemanufacturing #offsite #cost

In the world of business, Capex projects are more than just expenditures—they're strategic moves that play a crucial role in driving long-term success and operational excellence. Discover how effective Capex management can lead to sustainable growth. 🚀 #Capex #StrategicInvestment #Growth #valuation

Pantheon International Plc (LSE:PIN) (PIP) has detailed its new Capital Allocation Policy, which will be implemented from the first of June. This policy is a key component of PIP's three-step strategy focused on shareholder value.  PIP plans to use adjusted net portfolio cash flow (aNPC) for the repurchase of shares, particularly when they are trading at a substantial discount to their net asset value. Under the policy, the extent of buybacks will be determined by the level of discount: over 50% discount will see 51-75% of aNPC allocated to buybacks; a 30% to 49% discount will have 26-50% allocation; and a 20% to 29% discount will receive up to 25%. This tiered approach aims to ensure that shareholder value is maximised without jeopardising the PIP's investment strategy or financial health. More at #Proactive #ProactiveInvestors #pantheoninternational http://ow.ly/XklU105tbJl

Good businesses does not become bad business and vice versa. The left side of the table below shows industry that we would invest in. Why? Because return on capital employed (ROCE) greatly exceed the weighted average cost of capital (WACC). In personal terms, WACC is similar to interest you pay on a loan. ROCE is what you make if you place the proceeds of the loan into some investments. If you take a loan at 5% and invest in a fund/investment that makes 10%, you create value for yourself. If you make anything below 5% you destroy value. Industries on the right side of the table destroys shareholder value as WACC is much greater than ROCE. #investments #quality #portfoliomanagement #portfolioconstruction Arrow Capital Source: Aswath Damodaran & Fundsmith

Jeremy Smith, Managing Director, FGI Finance, recently shared his thoughts on how incorporating Plant and Machinery funding alongside receivables and inventory can help businesses secure the capital needed for growth, innovation, and resilience. Read Jeremy’s insights into the need for this flexible financing solution in the UK mid-market, here: https://lnkd.in/erruAfQh #FGI #FGIFinance #ABL #invoicefinance #internationalabl #receivablesfinance

10] Manba Finance IPO review: Highlighting the financials of the financial company, Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, "With an AUM of ₹936 crore as of March 31, 2024, the company has a heavy focus on vehicle loans, particularly two-wheelers, which make up 60% of its portfolio and 90% of its revenue. While this niche generates an impressive average yield of 21% annually, such high returns appear unsustainable in the long term. A glaring weakness in the company's underwriting capabilities adds to concerns." https://lnkd.in/dkh4riPm

What sets HPB apart from other similar companies? A commitment to delivering high-quality completed renovations and development, ready for property investors to add to their existing portfolios. Gavin is a successful multiple business owner and entrepreneur with companies in property investment, financial services, corporate and personal development sectors. Whilst just launching HPB, there has been a lot going on behind the scenes with multiple properties already bought, flipped and sold in the past year. Contact Gavin for a chat about HPB and the opportunities it creates https://bit.ly/48Ze3wH Will Protect Ltd Holland Asset Management #HollandPropertyBureau #RealEstateInvesting #InvestmentOpportunity #PropertyExperts #RealEstateDeals #HomeInvestment #PropertyMarket #InvestmentProperties #propertyinvestment #investmentstrategy #realestateinvesting #realestatedevelopment #propertydevelopment #propertyflips

If implemented, the strategy aims to return Revolution Bars Group PLC to profitability by improving EBITDA, reducing debt, and enabling a recommencement of the refurbishment program https://lnkd.in/eYQxHJzB