Corporate finance  
& family business

louis-victor d’herbès

CFFB wants to be the ” Midsize Business Harbour ” where aspects of capital structure and financing for growth, capital transmission, real estate assets managements and complying governance can be addressed:

 

1. INGINEERING

Financial strategy and capital needs

Where are you ?

  • Is there a formalized business and stratégic plan for the next five years ?
  • Is there a budget preparation process the new year ?
  • Is Budgetary control correcting the strategic five-year plan ?
  • Have strategic plans achieved the expected goals ?

Our belief:

Capital requirements should be aligned with a clear strategy and formalized in the short and medium term.

Real estate strategy and capital consumption

Where are you ?

  • Is the real estate portfolio of operating assets done in relation to the overall strategy of the company ?
  • Are real estate related expenses fully identified ?
  • Is the company able to identify the contribution of real estate in its profitability?
  • Who is in charge of all the real estate strategy in your Company ?

Our belief:

Companies underestimate the importance of the housing dimension in their creation of current and potential value.

Sustainability and Organization of capital

Where are you ?

  • Is there a mechanism for ensuring the unity of the family group?
  • Is there an assessment of the liquidity needs of the family group procedure?
  • Is there a consensus between all branches of the family to maintain their participation and not give the Enterprise
  • Is there a family agreement for the industrial development and the company strategy?

Our belief:

The independence of the Company is a key component of value creation. Large groups never fully meet the demand of a market. This independence requires in particular a desire to sustain and organize the capital.

Fundraising in both equity and bonds

Where are you ?

  • What are the investment needs identified in amounts and short- and medium-term nature, and how are they financed?
  • Have you an idea of the shareholder value of the Company?
  • Has the Company funding capacities and flexibilities ?
  • How are evaluated the cost and the expected return on capital?

Our belief:

We believe that finance is the Enterprise service and not the opposite.

 

2. FOLLOW UP

Non executive Directors

Where are you ?

  • Is there a process of communication and reporting properly formalized between the Board of Directors, members of the family shareholders and management?
  • Are there any formal criteria allowing a family member to come to the Board?
  • Is the Board of Directors includes independent directors ?
  • Is the medium-term development strategy compatible with the goals of the family group?

Our belief:

The competencies of the Board are enriched by the arrival of independent and referent directors.

Operational performance improvement

Where are you ?

  • Do you follow regularly formalized performance indicators?
  • Are you receptive to the idea that you can do better, not necessarily with your current resources?
  • Have you implemented a continuous improvement process in the company?
  • Are you in agreement with the idea that improving performance is fully compatible with respect for employees and maintenance, and ultimately creating jobs?

Our belief:

Operational performance is a key element of independence and sustainability of the Company.