Embed Size (px)
Citation preview
1020
30
50
70
100
150
1 -2 -6 -8
-20
10
40
Year1 Year2 Year3 Year4 Year5 Year6 Year7
OrganicGrowthnoworkingcapitalfinance
Sales
Cashflow
qGrowingbusinessusuallyburnscash
qAdequatefinancingisrequiredtofinancegrowth
qDifficulttopaydividendsasrisingsalesarenotmatchedwithrisingcashflows
10
20
30
50
70
100
150
1 2 510
20
30
50
Year1 Year2 Year3 Year4 Year5 Year6 Year7
OrganicGrowthwithworkingcapitalfinance
Sales
Cashflow
qGrowingbusinessusuallyburnscash
qWorkingcapitalfinancecanbridgethefundinggap
qAdequatefinancingallowsgrowthtogenerateadditionalcashalbeitataslowrate
10
2530
50
7080
90
110
40
80
120
150
200
Year1 Year2 Year3 Year4 Year5 Year6 Year7
Growthwithfranchising
Sales
Cashflow
qWithfranchising,effectivelyyouaresellingpartofyourbusiness
qThebrandwillleadthecashflow
qSaleseffortistransferredtothefranchisees
qThebusinessvalueonexitisenhanced
