Background Most companies try to focus on increasing profitability because that is evidence that the company may be growing in value. However, many businesses have a major focus on growth and, at times, are not aware of the negative impact on net income resulting from changes in product strategy and/or focus. Likewise, when a company is going through a transition in operations (new product focus, implementation of new technology, changes in strategic direction, etc.) it is imperative that all changes are evaluated as to the resulting impact on the synergism of the entire business enterprise.
Profitability Improvement and Company Value RAR Management provides high level profitability improvement services to both domestic and International companies as an approach to increasing company value. Mr. Rivero’s broad experience as a Managing Partner of nine different KPMG business units and serving multinational clients during his tenure at the Firm, includes businesses operating in the U.S., Canada, Mexico, Central & South America, Western Europe and Southeast Asia. Since his early retirement from KPMG, he has assisted companies in developing and implementing strategic action plans for profitability improvement. As a CPA, Mr. Rivero’s financial expertise is augmented by his extensive operations management experience which provides him with in-depth understanding of the dynamics of the significant drivers of income and expenses and their relationship to potential operating/financial barriers that prohibit profitability improvement.
Profit Improvement Services Provided: The following services are performed to assist companies in improving their business valuation:
Assessment of the company’s potential for profit improvement
Development of an action plan to improve profitability
Quantification of the potential financial impact of the implementing the action plan for improvement
Assistance in the implementation of the action plan
Dealing with work force expectations based on a different culture
Evaluating the future business risks of the operations
Implementing an effective expatriate personnel program
Dealing with local accounting and legal requirements that may be quite different from the U.S.
Adapting to the way that business is carried on, which, in certain countries, may conflict with certain U.S. requirements
Monitoring the internal control processes to ensure protection of resources