Services / Capital

Working capital management refers to a company’s managerial accounting strategy. Designed to monitor and use the two components of working capital, current assets and current liabilities, working capital management ensures the most financially efficient operation of the company. 

Businesses can raise capital lots of ways including equity financing, venture capital, debt financing and many more. When in doubt, it’s best to seek professional advice on what capital raising method is best for your business. 

Working capital is the difference between a company’s current assets [like cash, accounts receivable or inventories] and current liabilities [like accounts payable]. It‘s used to measure a company’s operational liquidity and short-term financial health. 

Capital budgeting is the process of determining which long-term investment projects a company should undertake to maximise its value. It involves analysing and evaluating potential investments to make informed decisions about allocating financial resources. 

Capital budgeting is important because it allows companies to allocate their resources in the most efficient and effective way possible. By evaluating potential investments and determining their potential returns, companies can make better decisions about where to invest their money, which can ultimately lead to higher profits and increased value for shareholders. 

There are several methods of capital budgeting, including the payback period method, the net present value [NPV] method, the internal rate of return [IRR] method, and the profitability index [PI] method. Each method has its own strengths and weaknesses, and companies may use a combination of methods to make investment decisions. 

Capital allocation is the process of determining how a company should allocate its financial resources to various projects, initiatives, or investments to achieve its strategic goals and objectives. 

Capital allocation is important because it allows companies to use their financial resources in the most effective way possible. It ensures that resources are being directed toward the most promising opportunities, maximising the return on investment and shareholder value. 

Companies can measure the effectiveness of their capital allocation decisions by tracking the performance of their investments over time, comparing the actual returns to the expected returns and using metrics such as return on investment [ROI] and economic value added [EVA]. 

Capital readiness refers to a company’s ability to obtain the necessary funding to achieve its strategic objectives. It involves assessing the company’s financial position, identifying funding needs and developing a plan to secure the necessary capital. 

 
If your business is facing challenges related to funding growth, mergers + acquisitions, capital allocation or a change in your ownership structure, you may need a capital advisor. The businessDEPOT Capital team is ready to help and happy to have an introductory conversation on how to get started.  

At businessDEPOT Capital, we use our years of experience and extensive network to provide guidance and support to businesses at key points in their journey. We help with capital to fund growth, measure and manage the capital allocation for greatest returns, merge or acquire businesses or plan a shareholder’s exit. Our primary goal is to take the mystery and complexity out of how you fund or structure ownership of your business. 

A significant pain point for many businesses is the difficulty in accessing and allocating capital to fund their growth initiatives or structure the project to manage a change in their funding or shareholding structure. At businessDEPOT Capital we help assess the situation, choose the optimum path and execute the transaction. Whether that involves equity, debt, mergers + acquisitions or a divestment, we’ve got the tools and network to help. 

Every business is different, every owner is different and every strategy is different. It’s why we love the role ofchampioning for our clients. Clients need a plan that is customised for them in their specific situation at that point in time. At businessDEPOT Capital we conduct a thorough assessment of your business’s financial situation, goals and challenges. We take the time to understand your specific needs, industry dynamics and growth plans. Based on this analysis, we develop a customised transactional strategy, recommend funding options and provide ongoing support to ensure transactional success. 

When selecting a Capital Advisor, consider factors such as their experience, track record, reputation, industry knowledge and the depth of their network. 

We have over 25 years of international investment banking experience combined with more than 10 years of local business advisory that we leverage to deliver success to your business. As an established capital advisor with a proven history of successfully helping businesses overcome financial challenges, we’re ready to help yours.