Who is ICM Consulting
ICM Consulting Limited (ICM Consulting) is a provider of independent financial advice to individuals, corporate and institutional investors during transactions where it comes to important decisions that define your future. We deliver a full suite of deal services spanning the entire deal cycle from initiation through completion. Our services include:
1. Fund Raising (Debt & Equity);
2. Mergers & Acquisitions (M&A) (Buy and Sell);
3. Due Diligence (Vendor & Purchaser);
4. Company Secretarial Services; and
5. Valuations
We focus on building long-term client relationships rather than closing a deal whether or not it’s in the best interests of our client. We are independent of the source of finance and so we differentiate ourselves through intellectual not financial capital. These factors, together with our deep sector knowledge combine to make great deals better.
What is Our Vision?
To be the leading provider of integrated advisory services in our chosen markets.
What is Our Mission?
To provide exception financial, tax and consulting services to our clients.
What are our values?
- Integrity – Always dealing with our clients and our colleagues in a fair and ethical manner; gaining trust through our actions.
- Knowledge – The value we place on our ability to develop leaders and the need to continually grow our collective technical expertise to meet the needs of ever more sophisticated clients.
- Service – Encompasses the concept of quality in everything we do, having a service-mindset when dealing with clients and demanding a lot of ourselves.
- Respect – Respect for one another in the office will lead to greater productivity and staff satisfaction, which should result in lower turnover.
- Leadership – Leadership both within the firm with respect to developing our next generation of leaders and within our market segment with respect to being recognized by current and prospective clients as a firm that is the leading expert in the field.
- Enthusiasm – Employing and nurturing staff with a passion for providing the highest-level quality service to our clients.
Business Plan Outline
If you’re looking for funding for a new or existing business, you need a business plan. Your business plan gives lenders and investors the information they need to determine whether or not they should consider you. Your business plan outline is the first step in organizing your thoughts. When you follow the outline below, you ensure your business plan is in the format that prompts investors and lenders to take action and consider your company.
- Section I – Executive Summary
- Section II – Company Overview
- Section III – Industry Analysis
- Section IV – Customer Analysis
- Section V – Competitive Analysis
- Section VI – Marketing Plan
- Section VIII – Management Team
- Section IX – Financial Plan
- Section X – Appendix
Team
Ignatius Mwape - Fellow of Association of Chartered Certified Accountants (FCCA) (UK), Fellow of Zambia Institute of Chartered Accountants (ZICA), Member of the Chartered Institute of Arbitrators (CIArb), Former Member of the ZICA Technical Committee. Ignatius’ has over 19 years’ experience having worked for the Mahtani Group of Companies as Senior Group Executive (Finance & Investments) and the Zambian Member firm of Grant Thornton International. Ignatius is currently working for the ICM Group which has interests in property development & management, construction, farming, financial consultancy and private equity.
Carol Mwape - Member of the Association of Chartered Certified Accountants (ACCA) (UK) and Member of the Zambia Institute of Chartered Accountants (ZICA). Carol’s work experience spans over a period of over 12 years having worked for a major Micro-Finance Organisation. With the Financial Services background, Carol is the “Fund Raising” specialist in the firm.
Cynthia Chama - Member of the Association of Chartered Certified Accountants (ACCA) (UK) and Member of the Zambia Institute of Chartered Accountants (ZICA). Cynthia's work experience spans over a period of over 8 years having worked for eSwitch, Nchila Farms and Africrete.
Tips to perfect your Business Loan Application
1. What’s Your Story?
There are four phases in the loan-request process:
- loan-purpose analysis;
- repayment-source analysis;
- loan structure; and
- loan management.
The four phases align with the ‘5 C’s of Credit’: i) What is the Character of the Borrower?
ii) What are the Credit Conditions requested?
iii) What is the Capacity for repayment?
iv) What Capital is the borrower investing?
v) What Collateral is being used?
The vehicle for your story is a well-crafted business plan, which should answer the questions related to the “5 C’s of Credit.”
2. Collateral
Strong collateral for your loan may be the tipping point for approval.
3. Financial Projections
“Financial projections which include income statements, balance sheets, and cash-flow statements. Different scenarios should also be developed.” Cash flow is king.
4. Muscle Up Your Credit
“First, create a high credit score by repaying credit on time. Second, be able to explain the purpose of the credit. Third, make sure that the loan can be repaid. Fourth, make sure you have equity. e.g 25% down. Fifth, provide collateral.”
5. Build a Relationship
Lenders will also track the performance of your loan and the financial health of your business. Trust is key.Say something interesting about your business here.
Capital Structure
Why do you need a Business Plan?
Optimal Capital Structure (M&M Theorem)
Optimal Capital Structure (M&M Theorem)
1. To prove that you’re serious about your business.
2. To establish business milestones.
3. To better understand your competition.
4. To better understand your customer.
5. To enunciate previously unstated assumptions.
6. To assess the feasibility of your venture.
7. To document your revenue model.
8. To determine your financial needs.
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1. To prove that you’re serious about your business.
2. To establish business milestones.
3. To better understand your competition.
4. To better understand your customer.
5. To enunciate previously unstated assumptions.
6. To assess the feasibility of your venture.
7. To document your revenue model.
8. To determine your financial needs.
9. To attract investors.
10. To reduce the risk of pursuing the wrong opportunity.
11. To force you to research and really know your market.
12. To attract employees and a management team.
13. To plot your course and focus your efforts.
14. To attract partners.
15. To position your brand.
16. To judge the success of your business.
17. To reposition your business to deal with changing conditions.
18. To document your marketing plan.
19. To understand and forecast your company’s staffing needs.
20. To uncover new opportunities.
Optimal Capital Structure (M&M Theorem)
Optimal Capital Structure (M&M Theorem)
Optimal Capital Structure (M&M Theorem)
What Is an Optimal Capital Structure?
An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company’s market value while minimizing its cost of capital.bjectively best mix of debt, preferred stock, and common stock that maximizes a company’s market value while minimizing its co
What Is an Optimal Capital Structure?
An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company’s market value while minimizing its cost of capital.bjectively best mix of debt, preferred stock, and common stock that maximizes a company’s market value while minimizing its cost of capital.
In theory, debt financing offers the lowest cost of capital due to its tax deductibility. However, too much debt increases the financial risk to shareholders and the return on equity that they require. Thus, companies have to find the optimal point at which the marginal benefit of debt equals the marginal cost.
According to economists Modigliani and Miller, in the absence of taxes, bankruptcy costs, agency costs, and asymmetric information. In an efficient market, the value of a firm is unaffected by its capital structure.
The optimal capital structure is estimated by calculating the mix of debt and equity that minimizes the weighted average cost of capital (WACC) while maximizing its market value. The lower the cost of capital, the greater the present value of the firm’s future cash flows, discounted by the WACC. Thus, the chief goal of any corporate finance department should be to find the optimal capital structure that will result in the lowest WACC and the maximum value of the company (shareholder wealth).
The Modigliani-Miller (M&M) theorem proposition states that in perfect markets the capital structure a company uses doesn't matter because the market value of a firm is determined by its earning power and the risk of its underlying assets. According to Modigliani and Miller, value is independent of the method of financing used and a company's investments. The M&M theorem made two propositions:
Proposition One
This proposition says that the capital structure is irrelevant to the value of a firm. The value of two identical firms would remain the same and value would not be affected by the choice of finance adopted to finance the assets. The value of a firm is dependent on the expected future earnings. It is when there are no taxes.
Proposition Two
This proposition says that the financial leverage boosts the value of a firm and reduces WACC. It is when tax information is available.
Pecking Order Theory
The pecking order theory focuses on asymmetrical information costs. This approach assumes that companies prioritize their financing strategy based on the path of least resistance. Internal financing is the first preferred method, followed by debt and external equity financing as a last resort.