For Medium to Large Businesses

Business Group

If you have established processes for making your projections;

If you are beyond battling running out of cash;

We respect that

There are many reasons beyond running out of cash to need good projections.

Overlay your annual sales plan with your strategic sales plan for 3, 5 or 10 years along with your debt repayment and capex plans and see where you are headed.

Will your plan meet your equity requirements and expectations for the future?

Will you have the cash for balloon debt, mezzanine or equity buyout provisions coming up?

 

These are all a snap with ThruThink® and very difficult with a spreadsheet. 

With all of our reports, the ThruThink Deal Score® and our return calculations, your strategic planning is brought into focus in a non emotional factual manner and frankly we think that is well worth the price of the subscription.

 

You may argue and even disagree with the results, but you will think it through, which is the whole purpose.

However, we find that most businesses do not have this sufficiently in place...

With the immense amount of time and investment it takes to develop projection capability privately with the proper checks and balances and tie out provisions it is usually well beyond the scope of time and resources available for the CEO's, CFO's and owners of most businesses.

Private spreadsheet programs often provide a false sense of understanding (especially those that have been developed by someone other than the user) and are fraught with hidden assumptions, mistakes and misleading processes that can lead to incorrect conclusions. The uniform platform of ThruThink® has undergone very intense and serious testing over thousands of iterations. 

 

We think ThruThink® is the most flexible and comprehensive projection, debt and equity management tool available on the commercial market.

Is your projection process one person's spreadsheet?

Is your projection process managed in a spreadsheet by a single individual? For everyone else that presents the situation of using "someone else's spreadsheet". This is fraught with the problems of others understanding how the spreadsheet works and hidden assumptions causing incorrect or misleading conclusions.

Passing around one spreadsheet or providing multiple people access to one server based spreadsheet presents the constant challenge of monitoring which is the most recent or official version and have any assumptions been changed. Did the version given to your lender or investors contain the assumptions that you thought it did?

If the author of your projection spreadsheet leaves the company or simply for the security issues of passing around a spreadsheet, having a secure cloud-based option is the next step in alleviating much of this pain.

 

So why care about ThruThink®?

  1. A multi-year strategic sales plan laid over your capex, debt, inventory, A/R, A/P, income taxes and equity obligations will challenge most spreadsheets and even sophisticated accounting systems.

  2. Is your business strategy worth all the risk, work & effort?

  3. Minimize the risk for mistakes and errors!

This is all automatic with ThruThink®

  1. Your sales plan will convert into a weekly and monthly cash flow plan going forward which rolls into accrual annual Balance Sheets and Income Statements. This will be crucial for effective negotiations for capex, asset sales, purchases, debt and equity placements and just good strategic planning. This becomes very, very complex, but it's a snap with ThruThink®.

  2. Is what you are doing worth all the risk?  After all the sales plans, payment obligations, income taxes are said and done, is the cash flow and the return attractive enough to compensate equity for all the trouble, risk and capital invested. Incorporate your Exit Strategy and see the equity returns at a glance with ThruThink®

  3. The uniform platform has already worked out all of the kinks, errors and mistakes that happen with an individual custom analysis.

Overlaying a new line of business or acquiring a new business? Combining them into your strategic planning is a snap with ThruThink®.

Here is what you get with ThruThink®

1.  Comprehensive input process to provide a picture of the past, present and future

Historical sales and expenses are entered to a provide picture of the past and a summary of the Initial Balance Sheet for the Company is entered as the starting point for the current position.

Projections for sales, cost of goods sold, general operating expenses, a vast assortment of debt options, performance earn out, sub debt, capital expenditures and exit strategy options are all available inputs.

All of this information will automatically generate a ThruThink Deal Score® and Snap Shot Summary for the project as well as a projected Balance Sheet, Income Statement, and Cash Flow for each year of the Horizon Period and Transaction Sheets showing the detail that put together your initial deal.

For a closer look at cash flow within the year, there is also a Monthly Annual Budget summary report as well as a 13 Week Cash Flow report.

 

Finally, there is the ability to monitor how things are going through the year by comparing monthly and Year to Date actuals for the current year or last year with the Projection to Actual reports.

2.  Existing Company, Target Company or both

ThruThink® provides the opportunity of inputting your summary Balance Sheet as the Existing Company and making your projections and analysis from there.

This can be a straight analysis of your Existing Company without a purchase involved or using the acquisition process you can look at your Existing Company acquire a Target Company or purchase the Existing Company as an acquisition itself. In both cases, the acquisition can be an investment for either 100% of the business or a portion of the business.

With ThruThink®, a company acquisition investment can be made using one of three options:

  1. Purchase or invest in an Existing Company for a full balance sheet purchase or analysis

  2. Purchase or invest in the net assets of a Target Company

  3. An Existing Company purchases or invests in the net assets of the Target Company 

Using the Existing Company option, your Deal Team can overlay a new acquisition or business deal into your existing company and demonstrate how the your company looks after the deal. This is a great way to show the benefits for a new acquisition or a new line of business to an existing business.

 

The equity contributions and the large assortment of debt options used to acquire the new business, Target and or Existing Company are incorporated in the succeeding company operations.

3.  Exit Strategy

There is an Exit Sale provision whereby the User inputs either a direct value sale or a multiple of EBITDA or both.

 

All returns are calculated using either Modified Internal Rate of Return (MIRR) or Internal Rate of Return (IRR) calculations depending on the situation.

See Return Example Illustration and example of the differences there can be between the Company's perspective for Return and the Equity Perspective for Return

4. Multiple time horizon choices

There is a choice of five time horizons (3, 5, 10, 15 or 20 years) for the analysis and there can be three groups of Equity ownership.

Each Equity Group can have a different percentage of Equity and a different percentage of Gain on Exit Sale of the Company. The latter is designed to provide a Company manager or Owner an incentive upon a subsequent Exit Sale of the Company.

 

Multiple deals or projects can be saved and compared. The ThruThink Deal Score® can be used as a comparison gauge between projects.

5. Use Sales less Expenses or just begin with EBITDA

If you want to simplify the projection process, you can jump straight to using EBITDA for your projections. This is a way to focus on earnings and debt from a larger point of view.  

Of course, for a more detailed projection process, Sales, Cost of Goods Sold, Operating Expenses, Cap Ex, Other Expenses and Cash Requirements can used.

For both options, the numbers may be adjusted and managed for the years within your time horizon along with Debt levels and repayment options and an array of Subordinated Debt options along with PIK Interest and Warrants.

Also for both options, there is a Performance Earn Out provision for either the seller or strategic investor.

Summary Reports for each Project

are organized into a

ThruThink Deal Score® 

and

Snap Shot Summary

as well as a

 Balance Sheet,

Income Statement,

and

 Cash Flow

for each year of the

Horizon Period

and

 Transaction Sheets

if it is a purchase, investment or sale.

 Check out all the reports here.

ThruThink® presents a great platform to model your business plans!

Check out the ThruThink Deal Score®
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Individual Client Companies

For each Client Company, Data Inputs are inputted separately and saved as an Individual Project. This can be done by the company or by the CPA or Advisor (Advisor). Whoever inputs the data will become the "Author". For Corporate Accounts, the Author will give access permission to specific individuals, for example, the Advisor (when prepared by the company), the Senior Partner and/or the CEO.