Business Diagnosis and Analysis

Knowledge Is Power

Business diagnosis is the best and most reliable tool a manager has to navigate stormy business water. The business information available to him might, in some cases, present an inaccurate or unreliable picture. Usually, when a business encounters difficulties it is busy in survival mode and in presenting a positive and optimistic outlook as much as possible despite its current state, thus increasing the business distress.

We at KCR know how to perform fast and deep business diagnoses and analyses regarding three aspects which are significant to a company’s functioning: business-financial, structure-operations and finance-funding.

The combination of these three aspects enables a comprehensive and responsible view of the company’s state, which can be used to draw business conclusions and formulate recommendations for execution.

Using the business diagnosis, our clients receive an updated, accurate and reliable situation report in a short period of time, including initial recommendations for short-term and long-term improvement and change. Our clients enjoy a broad and comprehensive view, and receive active business accompaniment and ongoing support even after being given the conclusions and recommendations.


What Does Professional Diagnosis And Analysis Include?

Business-financial analysis – first and foremost, KCR’s team of experts performs a financial analysis based on the company’s accounting and financial reports, by employing an in-depth analysis of the company’s different financial aspects – from the composition of assets, profit and loss statement, state of liquidity, cash flow, budget and distribution into different activities, up to payment to suppliers, creditors and collection from client. From a business aspect, we perform an analysis of central areas of activity, market analysis and the structure of competition, regulation and SWOT analysis.

Structure-operations analysis – at the operational analysis stage, KCR’s team of experts examines the organizational structure, the ownership and management structure, the infrastructure on which the organization is managed – starting with the information technology systems and the ways they are used, through the structure and policies of Human Resources and the expenses involved in its operation, and up to work processes and ongoing, daily operation of the organization. As part of the examination we also check, among others, production aspects, inventory management, distribution networks, business conduct vis-à-vis suppliers and clients, and in broader cases we perform a comparative analysis of the company’s needs and the understanding of the market in which the company operates. For example, it is possible to identify products for which the production process is not economical even though they are perceived that way by the company’s managers.

Finance-funding analysis – the financial and funding aspect deals with analyzing the company’s total credit and funding state. KCR’s team of experts performs an examination and in-depth analysis of the company’s debt and capital structure, liquidity, profitability, loans, repayment power and the factors which affect it, meeting financial stipulations and funding costs. In addition, it assists in the nurturing and rehabilitation of the different relationships with the relevant financial institutions, the company’s funding bodies, the creditors and the different suppliers. Streamlining and reducing the company’s funding and credit expenses will be based on a broad vision which connects the financial aspect to the operational and cash-flow aspect.


Creating A Turn-Around Plan

One of the goals and conclusions of a wide diagnosis and analysis process, is to provide a doable turn-around plan.

Following are typical stages in the work process of the KCR team of experts:

  • First stage: in-depth viewing and analysis of the company’s accounting files and financial reports.
  • Second stage: creating a profit and loss statement, cash flow report and internal operations report in order to understand the company’s components of each department, client or product/ service line.
    Financial analysis of credit lines for the company’s different business needs, and analysis of the holdings’ structure for the purpose of examining possible streamlining and finding structural flaws.
    Analyzing operational processes, assistance in management, creating internal procedures and work orders and classifying them according to processes to keep or change.
  • Third stage: formulating conclusions for streamlining and betterment and summarizing them in a consolidated document. The document is then presented to the company’s interested parties and used to discuss continued activity.
  • Fourth stage: creating a improvement/recovery plan based on the formulated streamlining concept. At this stage, the business is entitled to hire KCR’s services to continue the process via ongoing business accompaniment.

KCR – The Right Choice

  • We believe in in-depth diagnosis and analysis of the business, while understanding its real state and taking fast and decisive actions based on the findings.
  • We hold a holistic view, which takes a multi-system approach and incorporates insights from different areas, rendering it unnecessary to hire separate advisors, and cutting costs.
  • We see ourselves as full partners to the streamlining process, while assisting decision-making process in the immediate as well as long term. The streamlining plan will be manifested in the organization’s business results, even after the engagement with us has ended.
  • We believe that involvement, transparency and ongoing cooperation with the client, at any stage of the diagnosis and streamlining process, are the main key to success.
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