[CONTENU PARTENAIRE] Faced with the strong demand for support from SMEs and ETIs in the context of the audit of acquisitions or disposals or fundraising, the financial and accounting evaluation market is expanding strongly. Olivier SCHWAB, co-founding partner of NG Finance, explains to us today how his company was able to stand out in this very competitive sector.
What are the activities of NG Finance in the field of financial evaluation and accounting?
NG Finance is a financial consulting company specializing in valuation and financial modeling, as well as acquisition and disposal audits, particularly in the context of transactional operations. NG Finance also provides support services to finance departments, installation economic, accounting and financial management and reporting. It can also support certain companies in the creation and rationalization of their temporary financial plan.
Working mainly on behalf of SMEs and ETIs, the firm also dedicates a large part of its business to investment funds, development capital or growth capital (“Growth Equity Funds”).
The company acts as an expert and adviser in both accounting and financial matters: valuation of securities and assets (intangible and tangible), acquisition and disposal audits (“Due Diligence / Vendor Due Diligence”), processing and performance.
Can you describe the challenges of this highly competitive sector?
The challenges are multiple, given the many technical services provided, the different environments (transactional, accounting, legal and fiscal) in which we operate and also the nature of our clients and prescribers (lawyers, investment bankers, investments, SMEs/ETIs and other growth companies).
In addition, NG Finance ensures an essentially European influence, thanks to its offices located in London, Zurich, Brussels and Monaco, the international share is growing strongly. Its achievements are differentiated according to the size, structure and organization of its clients.
NG Finance stood out for the creation of a team composed of accountants, financiers and engineers. The company also works as an independent expert, especially on behalf of SMEs and ETI, intervening in restricted or regulated environments, aimed at control authorities (tax authorities, market authorities, auditors). NG Finance thus succeeds, objectively and independently to the client’s problems, to answer the questions of expertise and the implementation of often complex methodology, displaying a recognized signature.
How has the COVID-19 pandemic impacted your business?
The pandemic has had little impact on the company’s activities since the first lockdown, due to a wide variety of services and a large number of clients working in resistant sectors (e.g. health, new technologies, other services and digital platforms).
We also experienced strong growth in certain activities. NG Finance works for example for Investment funds in the field of evaluation of management packages ”, products that are excessively complex because they are very random.
Indeed, these products awarded to company managers and other key people to ensure that they fully participate in the growth of the company throughout the investment period (from 3 to 7 years), have now become legions in the world of investment and “Private Equity”. The structuring terms of these products are generally defined jointly by lawyers, consulting firms and the funds themselves. Our evaluation work allows, however, to independently estimate the cost of these financial instruments for managers.
Thanks to all of its centers of expertise, NG Finance today enjoys a very high reputation on the Parisian market, which makes it one of the most recognized companies in terms of evaluating “packages of management”.
Strongly requested in the framework of this growing market, the competence of the company is also necessary to intervene in sectors undergoing restructuring or presenting strong regulatory limitations.
What are the development trends in this market?
More and more independent consulting and audit firms are developing in the financial evaluation sector; all were overstretched, especially from the second half of 2020, which led to a sharp increase in recruitment needs.
Customers are looking for closer businesses that maintain a high level of expertise and advice. Although many sectors have suffered from the health crisis, many others have benefited from it, such as the health sector or new technologies, thus showing great resistance.
The measures put in place by the government have not yet revealed all the restructuring to come, but there has been, on the other hand, a market that continues to grow, and investment funds that continue to invest due to taxes historically low interest rates. These sectors therefore continue to benefit from a still very dynamic market.
What are the values of NG Finance compared to other consulting companies?
What NG Finance mainly brings to its clients is, beyond its signature, a high level of know-howand of excellence technicianbut also a reliability, a presence, a proximity and also a great reactivity, represent the main values of the company. The growth of its activity is based in particular on recurrence or word of mouth.
My partner and I succeeded in instilling strong entrepreneurial values in our company. The latter being mainly based on self-financing and therefore marked by a strong patrimonial adventure.
But the company, made up of 35 people, also highlights the human values and solidarity of his consultants, which allowed him to observe a very high loyalty rate in the framework of a collective project.
With more than 2,500 missions carried out since its creation in 2011 and about 260 missions a year in different environments, NG Finance is celebrating its 10th anniversary this year ; this event will be celebrated as it should be, given the pandemic, during the second half of 2021.
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