Business Advisory & Legal Contracts
Indigenesis offers tailored and advanced business advisory services in the UAE to support the local business community. Our business advisory services in the UAE are provided as per the client’s needs and delivered with the highest professional standards under the guidance of specific Industry experts.
Indigenesis can assist you by providing Virtual CFO services in Dubai, UAE, on a full-time or part-time basis, depending on client needs. Depending on the scope of the assignment, we can provide outsourced CFO Services in the UAE for a reasonable fee.
Our experienced members from IlM and ICAl, who have worked as CFO in MNCs in the UAE for over 20 years, can assist you in making strategic decisions.
We understand the challenges that businesses face, which is why we offer these Strategic CFO services in Dubai, UAE at a low cost. A strategic CFO would assist them in making better business decisions based on accurate and timely financial information. Our Strategic CFO services in Dubai, UAE, assist them in achieving their business objectives while laying a solid foundation for the company, resulting in long-term growth in shareholder wealth.
The CFO's Role in Organizational Strategy
In today's dynamic and challenging business environment, the CFO plays a critical role in developing and executing the group's strategy. The CFO is critical in initiating the strategic process by defining the company's Vision, Mission, and Core Values, conducting a SWOFT analysis, analyzing the industry structure, and assessing the bargaining power of customers, suppliers, and competitors. He also ensures that operational strategies, KRA for each department, and budgets are in line with the company's overall strategy.
- The CFO monitors market trends and ensures that the company's strategy is in sync with market dynamics. Standing shoulder to shoulder with the CEO, advising him on strategic issues and ensuring strategy implementation at the grass roots level.
- CFOs act as business partners for other departments, assisting them to increase productivity by analysing and linking operational reports with financial reports, allowing them to better manage their functions and add value to the company.
- The CFO creates the company's supply chain and ensures that it is cost-effective and competitive. They ensure that relationships with all stakeholders, including suppliers and customers, are properly maintained and that purchasing decisions are made effectively.
- They ensure that relationships with all stakeholders, including suppliers and customers, are maintained properly and that purchasing decisions are made effectively.
- The CFO drives digital transformation in the company because they are the custodians of financial and operational data that can be brought together in a single location and analyzed using digital tools to provide management with insights that help them make real-time decisions
The CFO maximises the Return on Investment.
The CFO ensures that the return on investment made by investors is maximised by optimising revenue and lowering costs through increased productivity and efficiency in all areas of business.
The CFO directs cash flow. Group administration
The CFO is responsible for effectively managing the group's cash flow by ensuring that short- term funds are not used for long-term purposes and that funds are allocated to projects or areas of business that maximise return on investment. They raise funds by developing and maintaining relationships with banks, financial institutions, and investors, as well as lowering the cost of capital for raising these funds and effectively manage working capital by maximising working capital recycle. They hedge the foreign currency risk by selecting the appropriate hedging instruments after closely monitoring updates and analyzing their impact on currency pricing.
They ensure that all applicable corporate laws have been followed by the company.
They ensure that proper internal controls and processes are in place in all areas of the business to eliminate the possibility of fraud and errors, as well as to identify and mitigate risk. They ensure that best practises are followed, including benchmarking in order to maximise return on investment.
Mergers and acquisitions
When a company decides to expand through acquisition or mergers, the CFO plays a critical role in ensuring that proper infrastructure, including key resources such as funds, is in place.
Globalization in comparison to localization
By analysing its growth potential and having an in-depth understanding of various regions around the world, the CFO ensures that each business segment of the organisation is scalable to a global level while also maintaining a local flavour.
Our CFO Services in the UAE include the following:
- Creating Business Strategies/Policies and Action Plans
- Provide assistance in the preparation of annual budgets, as well as a continuous review.
- Instructions for establishing Internal Control Processes
- SOP MIS Report Drafting and Implementation Guidance Cash Flow and Working Capital Management Preparation and Analysis of Financial Data
- Contract review with customers, suppliers, etc.
- Tax advice in the United Arab Emirates
- Guidance and monitoring of the Accounting Department as needed.
- Cost analysis assistance in project accounting and construction contracts
- As needed, provide regular business advice to the CEO/Owners.
- Pre- and post-costing analysis assistance.
- Relationship management with banks and other financial institutions.
- Support from banks and other financial institutions in handling working capital facilities and ensuring covenants.
- Risk administration.
There are numerous reasons why a business owner or company needs to know the value of a business, including the desire to sell or buy a business, the settlement of a lawsuit, capital restructuring, business expansion, and so on.
Business valuation necessitates in-depth financial analysis, which should be performed by a qualified valuation professional with the necessary credentials. Business owners who seek a low-cost business valuation are seriously underestimating the value of a comprehensive valuation analysis and valuation report performed by a valuation expert. These advantages assist business owners in negotiating a strategic sale of their company to obtain a fair price, reducing management's financial risk in litigation, and so on.
How should a business be valued?
Business valuation is the process of determining a company's current worth, and there are numerous techniques for determining value. The most common value standard is fair market value. The fair market value of a business is the price at which it would change hands between an independent buyer and seller who have all of the necessary knowledge and facts, are not under any undue influence, and have access to all of the information needed to make an informed decision.
An analyst valuing a company considers the company's management, the composition of its capital structure, the prospect of future earnings, and the market value of assets, among other things.
It is a common misconception that the company is worth these many times EBITDA (earnings before interest, taxes, depreciation, and amortization), as this does not take into account the industry, business risks, cash flow expectation, debt, and other factors. As a result, it is always advisable to have a business valuation done by a valuation expert. Without knowing the actual fair market value of the business, the owner may sell it for a lower price or purchase it for a higher price than it is actually worth. For these reasons, the cost of conducting a business valuation can be a wise investment. It is sometimes possible to save millions of dollars by paying the right price or refusing to invest in an unworthy business.
Financial Feasibility Study:
The feasibility study in Dubai UAE will determine whether or not your business proposal will be turned into a reality.
Do you want to start a new business or expand your current one but are concerned about the feasibility and viability?
What exactly is a feasibility study?
A feasibility study evaluates a business plan to determine its viability. A feasibility study is an objective analysis based on real and credible data. The feasibility study is the first step toward a successful business because it determines whether the business plan will generate the necessary cash flow, thereby contributing to the business's stability.
Areas of Concentration
As a premier and well-established Business Advisory Firm in Dubai, UAE, we concentrate on the following areas when conducting a financial feasibility study in the UAE:
This phase investigates the internal and external market conditions. To bridge the gap, the current and future market conditions are analysed, the dominant players are identified, and their strengths and weaknesses are determined. The newly introduced product/service is compared to existing products/services, distinguishing features that create an advantage over existing products are understood, and whether it meets any 'need' of the market is examined.
In this phase, the receptiveness of target customers is investigated, delivery channels are identified, and value propositions to customers are developed.
1. Field Research
- Personal interviews
- Telephone interviews
2. Internal Sources Desk Research
- Sales figure
- Accounting sources
- Complaints and comments from customers
- Sales representative report
3. Online Research
- Search engines
- Other online databases
- Sales representative report
4. Printed Research
- Business statistics
- Industrial market research reports
- Business directories
5. Other Market Analysis
- Market Trend
- Market Segment
- Targeted Customers
- Target Market Analysis
- Pricing Strategy
- Competitive Condition
Aspects of Money
This step examines the startup costs, operating costs, financing methods, and profitability. At this point, the legal costs, capital acquisition costs, and fixed and variable costs are calculated. The mode of raising funds, whether through loans, from investors, or other means, is determined after considering the implications and costs of the various financing options. The projected income and expected return on investment are also determined. To ensure a healthy cash flow, the supplier and customer terms of payment are also determined.
The following are the general contents of each financial feasibility:
- Financial Overview,
- Statement of Financial Position Projection
- Profit and Loss Statement
- Statement of Cash Flows
- Financial Projections Notes and Explanations
- Analysis of Ratios VI BEP
This stage determines the time frame for establishing the business. Though market analysis takes time, a viable business plan must be implemented within a specific time frame due to the market's volatility. The business plan should be implemented within the time frame specified to ensure that the company's goals and objectives are met.
We employ the PIECES framework, which aids in identifying problems and their urgency:
A. Performance – Does the mode of operation offer sufficient throughput and response time?
B. Information – Do end-users and managers have access to timely, relevant, accurate, and usefully formatted information?
C. Economy- Does the mode of operation provide the business with cost-effective information services? Could there be a cost reduction and/or an increase in benefits?
D. Control – Does the mode of operation provide effective controls to protect against fraud and ensure data and information accuracy and security?
E. Efficiency – Does the mode of operation make the best use of available resources, such as people, time, and the flow of forms?
F. Services – Does the mode of operation provide consistent service? Is it adaptable and extensible?
What are the Advantages of Performing a Financial Feasibility Study ?
- Assists in narrowing down the various business plans
- Directs business in the right direction
- A thorough market analysis assists businesses in identifying available opportunities.
- Address their competitors' weaknesses
Advisory Service for Mergers and Acquisitions in Dubai, UAE
In recent years, the United Arab Emirates (UAE) has seen an increase in mergers and acquisitions. The common goal of Mergers and Acquisitions is to create a stronger position in which two companies combined are worth more than two companies separately. The main reasons for mergers are technology integration, increased revenue, regional expansion, increased growth, diversification, tax benefits, and so on. Mergers and acquisitions take months to complete and involve numerous steps and procedures.
What are the advantages of mergers and acquisitions?
Mergers and acquisitions have numerous advantages, some of which are listed below:
- It is often less expensive to buy than to build.
- If your company is underperforming and not growing as expected, it may be less expensive to buy an existing company rather than expand it internally.
- Cost and overhead reduction through sharing expenses, miscellaneous budgets, purchasing costs, and so on.
Why choose Mergers and Acquisitions?
When you merge or combine your business activities, overall performance efficiency rises while onboarding costs fall.
Mergers can provide the acquiring company with the opportunity or prospect of increasing their market share with minimal effort. Instead, the acquirers simply purchase a competitor's business for a set price, which is known as a horizontal merger (explained below).
When considering acquiring suppliers or distributors, the acquirer and can avoid many costs that would otherwise occur. When an acquirer buys one of its suppliers, it is known as a vertical merger (explained below), in which the acquirer saves on the marginal costs that the supplier previously charged.
Factors to Consider in Mergers and Acquisitions
Mergers and acquisitions processes must take into account the following factors:
- The type of consideration (Cash or Stocks)
- Integration of management
- Accounting and taxation
Mergers and acquisitions transactions are classified into three types.
- Horizontal Merger: The combination of two or more companies in the same or similar industries in order to increase market share and revenue. Increased market share allows these types of businesses to exert price control.
- Vertical Merger: This type of merger is used to expand into new industries, such as when a manufacturer merges with its supply chain company.
- Conglomerate Merger: To increase business diversification, companies from various industries merge.
How can Indigenesis Consulting assist with Mergers and Acquisitions in the UAE?
Indigenesis Consulting professionals have extensive experience in a variety of industries and can help you create value and mitigate risks during the M&A process.
Indigenesis Consulting Group can help you with:
- Identifying and developing integration strategies
- M&A Transaction Structure
- Negotiation of a Deal
- Overseeing the M&A Process Drafting and Vetting Legal Documents
- Deal execution and completion
Trade Finance in UAE :
Trade finance is the financial assistance provided for local and international trading transactions via various financial products. Trade Finance is simply the funding and support provided to conduct trading activity. Banks and other financial institutions are the primary sources of trade finance.
Trade Finance Types:
- Working Capital Loan/Facility
- Long-Term Loans
- Credit Letter
- Receivable Discounting (Invoice Factoring/ Invoice Discounting/ Cheque Discounting)
TradeFinance Option Types
Indigenesis Consulting has hands-on experience assisting businesses in the UAE with its trade finance advisory service.
Working capital is defined as the difference between Current Assets (cash + inventory + accounts receivable) and Current Liabilities (cash + short-term borrowing + accrued liabilities).
It is critical to examine the operational cycle from raw material/inventory procurement to payment to suppliers, i.e., from the point at which the company procures raw material until payment is received on sale of goods and payment is made to suppliers. The number of days taken in this conversion cycle is critical for working capital analysis. Based on this analysis, the finance team can identify the working capital gap and plan how to fill it.
A term loan is a bank advance that must be repaid in a specified number of instalments. Term loans have a variable or fixed interest rate that must be paid in addition to the fixed instalment. Term loans are typically used by businesses to purchase fixed assets. Term loans are classified into three types based on their tenure: short term loans, intermediate term loans, and long term loans. To reduce the risk of payment default, a term loan may also require collateral.
Letter of Credit
Documentary Credit, also known as a Letter of Credit (LC), is an irrevocable undertaking issued by a bank under which the bank agrees to pay a beneficiary if the documents specified in the LC are presented and all terms and conditions are met. Due to factors such as distance, uncertainty about the genuineness of a party, and so on, the exporter and importer use an intermediary such as a bank to guarantee payments and delivery of goods in international trade. If the buyer is unable to make the payment, the bank must cover the entire amount.
The Advantages of a Letter of Credit
To the purchaser
- Non-funding facility
- Option for interest-free financing
To the vendor
- Reduces credit risk
- Apply for pre-shipment financing against the LC.
- Money received on time
Receivable Reduction (Discounting)
Invoice Discounting: Invoice discounting allows a business to receive a portion of the raised invoice amount upon presenting the invoice, with the balance received after the customer pays. Invoice Discounting allows businesses to obtain funds quickly, increasing their cash flow. In most cases, this facility is customer-specific and in accordance with the Bank's policy with the customer. Before discounting an invoice, the bank will consider the customer's payment capacity, the borrower's trustworthiness, and additional security.
Cheque discounting is a bank service in which the bank finances the transaction and provides funds before the due date of a PDC issued by a customer. The supplier receives payment immediately under this arrangement, while the customer has a credit period to pay.
Bonds or Guarantees
Bonds or guarantees are facilities provided by a bank that provide the buyer with security in the event that the seller fails to settle the obligation. When the seller fails to deliver the ordered goods, the buyer is compensated by the bank. These are primarily used in the construction industry or for specific projects. Tender Bond, Performance Bond, Advance Payment Bond, Retention Bond, and Payment Guarantee are the various types of bonds or guarantees based on 'on-demand' and 'conditional' classes.
What are the advantages of UAE Trade Finance?
Trade Finance in UAE will help the business grow by obtaining financial assistance from banks and other financial institutions, which is required to conduct the trading company's business activities. Trade Finance will assist businesses that do not have sufficient Cash Flow or Working Capital to meet their needs. Trade Finance will also give relief from a cash crunch, extended credit period of customers, and blocked funds on unsold inventories, to a certain extent.
Trade Finance in UAE will assist a business in offering a more competitive price and terms to suppliers and customers by ensuring guaranteed payment to suppliers on time, based on certain pre-agreed conditions. It will also assist the business in dealing with cash constraints or liquidity gaps by offering options such as Terms loan, Overdraft, Customer Invoice discounting, and so on. Trade Finance will allow businesses to purchase inventory in bulk, giving them the benefits of negotiation and high- quantity discounts, resulting in increased profitability. Trade Finance also assists businesses in developing strong Supplier/Customer relationships by reducing payment risk to the greatest extent possible.
We draught legal contracts for companies in the UAE. Our contract drafting service is also available to organisations, institutions, and individuals who follow UAE law. Our specialty in the UAE is contract drafting and review. Our Legal service in UAE pays special attention to ensuring that each client receives contracts that are free of defects or legal violations under UAE law. Our contract lawyers in UAE serve a variety of company types, including private companies, limited liability companies, joint stock companies, partnership companies, and free zone companies in Sharjah, Dubai, Ras Al Khaimah, and the rest of the UAE. We draught legal contracts for mergers, agreements for cooperation and mediation, liquidation contracts, leases, mortgages, insurance, and contracts for gifts or inheritances in accordance with UAE law for each emirate.