David Elliott qualified as a chartered accountant in 1990 with Big Four firm KPMG. He went on to spend several years training accountants before setting up his own practice in 2001. Clients value David’s ability to come up with ideas and solutions and his energy and passion for delivering results.
We spoke to David about EBA Chartered Accountants and his views on business plans and performance improvements.
EBA Chartered Accountants is a dynamic firm of chartered accountants, offering a fresh and forward-thinking approach.
If you’re looking for a friendly and expert team who understand what it takes to start and build a successful UK business, please read on…
We’ll work very closely with you, helping you, supporting and mentoring you. We’ll inspire you with our ideas and we’ll plan and implement the very best business and tax strategies with you. We want to make your life easier whilst helping you to make more money.
We’re looking for entrepreneurs who are serious about building profitable, valuable businesses. If you’re one of them, then we really do think that we should meet. Have a look at what our other clients have to say about us. And don’t forget to contact us for a free tax or business health check!
We hope to see you soon.
What would you say is the key behind improving performance and increasing business valuation? How do you approach this for your clients?
Ensuring that our clients have a thorough understanding of the factors that impact business valuation. Measuring and reporting to clients on EBITDA. Giving clients an idea of the value of their company every time we prepare accounts for them. Putting forward ideas for clients on how they can grow EBITDA and, at the same time, increase the value of the EBITDA multiple that buyers might be prepared to offer.
What would you advise as the best ways for a business to plan for the future?
It’s essential that clients thoroughly understand their business model and the key numbers (KPIs). A rolling 5-year plan is essential.
To plan correctly, both the client and EBA must understand what the goals are and what the endgame is.
What is the client’s ‘key number’? What exit value is required to enable the client to have/maintain the desired standard of living beyond the exit?
We use financial modelling to forecast the client’s cash flow beyond exit. When will they run out of cash? Will increasing the anticipated exit price by 5%, for example, enable them to live longer whilst maintaining their lifestyle?
All plans must be flexible – not overly rigid. With increasingly turbulent political, economic, social and technological environments, businesses have to be able to manoeuvre more agilely than ever before.
Understanding key strengths and weaknesses is essential. Many businesses don’t play to their strengths. And they turn a blind eye to weaknesses that expose them – when those weaknesses could, in fact, be corrected quite easily.
Plans should be put in place to mitigate the impact of the risks posed by change.
Business owners must visualise what they want their business to look like ‘when it’s finished’. Who are the likely buyers? Competitors? Suppliers? Customers? They must anticipate what those likely suitors would want and build something that these buyers will want to pay a premium for.
A good analogy is the difference between a typical homeowner and a professional property developer. The homeowner creates something that suits themselves – maybe even a bit quirky. They love it, but will a potential buyer? The property developer has only one thing in mind from the outset. And that’s to create something that will appeal to their target buyer.
What must be kept in mind when creating an effective exit strategy that delivers results?
Your business has to be able to operate independently of you and your fellow owners. For smaller businesses services providers, in particular, this can be difficult. Customers and clients may view you, individually as an important component of their experience with your business. It’s essential to step back and put in place the management teams and systems to
You must know, in advance, who you’re going to target. Your business is likely to be more valuable to a competitor than to any other group. A competitor may be able to ‘bolt on’ your business to their existing model, taking out lots of the cost that you have to incur. For that reason, they may be persuaded to pay more. For your corporate customers and suppliers, there’s an opportunity to integrate your business into their supply chains and, as a result, improve their own business models.
What is in store for EBA Chartered Accountants in 2019 and beyond?
The 2020’s Vision programme has been designed for business owners with an endgame in mind; for entrepreneurs who are deadly serious about building a scalable business that will deliver their ‘number’ on exit.
We’re going to meet monthly, throughout 2019, examining in detail the components of a valuable business. Our impressive list of speakers will drill deep into the core value-drivers that all serious business owners should focus on.
We’re looking only for visionaries; 2020’s Visionaries!
At each session, our Visionaries will network and share ideas with others looking to build value for the exit.
The 20’s will soon be back!
What will your life look like by the end of the 20’s?
Join The 2020s Vision Programme Today And Let Our Team of Experts Help You Realise The Value In Your Business:
EBA Chartered Accountants
0161 266 1036