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Tuesday 24 March5:15pm - 6:45pm
Structured Learning Points
• Collective responsibility means that Board Members must have an understanding of financial information and its terminology
• Understanding the business's risk profile and how that aligns with your own attitude to risk
• Understanding where your Director responsibilities lie especially in the face of difficulties/crisis- lateral-thinking required to survive!
SpeakersJim Shaw Founder & Partner at leadingcorporate finance boutique Shaw & Co. A Chartered Accountant, Jim has completed over 70 M&A transactions valued at over £0.5bn.
Clare Beazley A highly experienced tech SME
sector CFO, Clare has steered 2 VC-backed software businesses. through start-up, growth and successful exit
Ololade Adesanya - Ololade is a Director in
EY’s Financial Services practice and sits on the Advisory Boards of Bristol City Funds and UWE’s Dept of Accounting and Finance.
Building Boards for 2020 Vision - Finance!ESSENTIAL Learning for Better Boards
Teams Online Meeting
Building Boards for the Future Finance for SMEs
Transpire – The Director Network | March 2020
Jim ShawManaging Partner, Shaw & Co
March | 2020
• 15 years of deal experience
• FCA qualified accountant, trained with PwC
• Led the sale of businesses with values between
£5m and £100m and collectively total value
transacted is in excess of £0.5bn
• Led MBO of VoucherCloud from Vodafone then its
onward sale to Groupon sat as FD
• Led sale of Pukka Herbs to Unilever after two years
on the board as observer
• NED at TorchlightGroup Ltd for three years
• Completed multiple Private Equity transactions
• South-West Young Dealmaker of the Year 2013
• Short listed South-West Dealmaker of the Year
2018
Basic Awareness
• (All) Directors are legally required to keep specific registers, books and records that reflect the operation of the business
• Establishment and management of reporting systems a responsibility of the board
• Ignorance is not an excuse
• Understanding the numbers is essential
• Using numbers is a competitive advantage
Let's talk about risk
• Financial risk is a matter of opinion
• Its essential that you talk with your fellow directors and possibly shareholders to form a collective view
• It is not the job of an NED to be a drogue on a business
• It is the job of an NED to ensure governance to an agreed risk frame work
• There is a line, there are hard rules about trading insolvently
Key Information
• Cash is king – encourage your board to invest and maintain shorth and medium-term cash flow forecasts
• Cash forecasting is a result of P&L forecasting and understanding the balance sheet
• Understand the risk to cash, scenario planning appropriate to the business
• Liabilities, actual and contingent - what is the position of the balance sheet
• Where do you make money? Where are you losing money?
What you must do
• Document your agreed approach to financial risk
• Be clear on the frequency of reporting required by the business. In crisis this might be weekly or daily
• Keep a paper trail, document decisions
• Take professional advice if in doubt
• Stick with it, rough comes with smooth and you won’t be criticised for doing the right thing
Questions