It is axiomatic in business that “the numbers tell the story” and that management strategies and plans that are conceived without due regard to the numbers are unlikely to be successful or long lived.
The industry experience and reference data compiled over many years by ARC people means that we have the capability to assist with the analysing and understanding all aspects of the financial performance of primary industry businesses. The financial performance of any business is the measurement and judgement of the effectiveness of management in utilising available resources and directing the major drivers of the business. ARC people understand what these drivers are and what needs to happen in successful agricultural businesses in order to produce strong financial results.
There are numerous reasons why a financial assessment of a business or project may be required. While the future performance of any business enterprise cannot be known with 100% accuracy, the best indicator of future success is the historical performance of that enterprise. A proper understanding of the factors contributing to historical financial performance can provide an objective basis to attributing a probability to the likelihood of achieving forecast outcomes.
For example, if a loss event is expected to result in losses being incurred over a number of years, a strong indicator as to the quantum of those losses will be provided by the historical performance of that enterprise.
Another situation where financial analysis and assessment may be required is where an enterprise is considering an expansion, acquisition or embarking on a greenfields project. Business shareholders, management and financiers will require information such as capital and operating budgets and cash flow projections in order to understand and assess the feasibility of these strategy alternatives.
If you would like to know further details about ARC’s capabilities and experience in this area and how they may be of assistance, please don’t hesitate to contact us.