Herb To

Australia's economic crossroads are proving to be a testing ground for businesses. The latest insights from Warwick McKibbin's article highlight a critical concern: higher for longer interest rates, a necessary measure to tame persistent inflation, will inevitably lead to more corporate failures. Amid an ongoing productivity crisis and a cost-of-living squeeze, the pressures on businesses are mounting. Here’s why the current trajectory is particularly alarming: Increased Borrowing Costs: Higher interest rates mean higher borrowing costs. For companies already struggling with thin margins, this can tip the balance from survival to failure. Debt Servicing Challenges: Many businesses are burdened with significant debt. Rising rates increase the cost of servicing this debt, which can lead to insolvency for companies that cannot absorb these additional costs. Reduced Consumer Spending: Higher interest rates also curb consumer spending, reducing demand for goods and services. This, in turn, impacts corporate revenues, making it harder for companies to stay afloat. Investment Declines: With the cost of capital rising, investment in business expansion or innovation becomes less attractive, stifling growth and increasing the risk of failure in a competitive market. Macroeconomic Pressures: The overall economic environment is complex, with inflation outpacing income growth and a lack of productivity gains. Companies are navigating a tough landscape where macroeconomic pressures compound operational challenges. As policymakers grapple with these issues, it's crucial to recognize that without addressing the underlying productivity problems, the path of rising interest rates will likely lead to a surge in corporate failures. The focus must shift towards enhancing productivity to stabilize the economy and support businesses in this challenging period. #EconomicCrisis #CorporateFailures #InterestRates #Productivity #AustraliaEconomy #BusinessChallenges

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James Thompson has written a piece in yesterday's AFR citing Gary Wiess' advice to CFO’s, suggesting, they focus on the numbers, “of course.” He goes on to say “At the very basic level, it is the accumulation of the financial data in a cohesive, coherent manner that can be understood.” Sounds simple but as Weiss says, “it’s not always a given.” The example he sites, after seeking a board position based after the procurement of a 10% stake in Ardent (the leisure group) in 2017. The business, in an attempt to “curry favour” with shareholders, released what it called its core EBITDA, $76.1M – for the full definition, check out the article its quite comical. The trick is in the word “core.” When the actual results were eventually released, they showed an actual loss of ($60M)– that’s a swing of $136.1M. In effect, the core EBITDA was about as much use as a chocolate fire guard and a lot more dangerous. The numbers should always reflect what’s really going on, knowing them is one thing, being able to articulate them, takes real skill. Knowing and being able to explain the numbers, providing genuine insight, is essential when doing a deal. Having a coherent view on the outlook is also a big part of the exercise. After all, a buyer is buying the future of a business. Final point, we concur with Wiess on the fundamental importance of the balance sheet, he calls it “the first port of call.” My first non executive appointee, Russel Smith used to “say never give me the P&L without the balance sheet, without a fully reconciled balance sheet, it's useless.” I would add that the numbers without a clear and concise narrative are also fairly useless and invites a guessing game. Quick tip, buyers nearly always guess to the down-side! Don’t skip the narrative.                      Read the full article here: https://lnkd.in/gTWRahpp

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Pleased to offer some thoughts with Darcy Song of the Investment Magazine on 'The chief retirement officer’. An important role to get right for Australian retirees. Is it an advocacy role for retirees inside a #superannuation fund or a senior exec role designed to deliver a total retiree service? Does it run the risk of being a 'minister without a portfolio'? Do super funds need to create virtual retirement funds or separate their services more from super funds to support a real chief retirement officer? Do we eventually end up with the CEO of a Superfund and a CEO of a retirement fund? Much to consider if we are going build a high quality retiree experience which lasts a lifetime. An essential part of the solution is for super funds to make personal financial advice scaleable and mostly digital so as to be affordable and accessible for all members. Please add to the dialogue. #pensions #retirees #digitaladvice

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In this online course, we will guide you on how to save smart, unlock tax benefits, and secure a stronger financial retirement! #FinancialFreedom #Superannuation #SmartSaving

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Transform Your Financial Strategy with Pay Australia's CFO Advisory Services   Are you ready to elevate your financial game? Pay Australia offers bespoke CFO advisory services to:   1. Step up your financials - From bookkeeping to advanced financial reporting.  2. Improve board reporting - Make informed decisions with clarity and confidence.  3. Scale smartly - Transition smoothly from part-time to full-time CFO support as your business grows.  4. Maximise your business value - Prepare for sale or exit at the peak value.  5. Boost efficiency - Cut costs, enhance productivity, and build resilience.   Let us be the architects of your financial success. Connect with us today to explore how we can tailor our expertise to your needs! 

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In this webinar hear CPA Australia’s policy experts discuss and distill the key announcements from the 2024-25 Australian Federal Budget. 🌎 It will include discussions on key budget announcements on taxation, superannuation, industry support, household support and the broader economy. Register now.

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𝗔𝗿𝗯𝗼𝗿 𝗣𝗲𝗿𝗺𝗮𝗻𝗲𝗻𝘁 𝗢𝘄𝗻𝗲𝗿𝘀 𝗶𝗻 𝗮 𝗻𝘂𝘁𝘀𝗵𝗲𝗹𝗹 Arbor Permanent Owners is a decentralised holding company that is following a well-trodden playbook: investing in smaller, asset-light companies with strong market positions and predictable cash flows that can be reinvested in further acquisitions. Our focus is acquiring “Great Australian SMEs”: market leaders in a niche, typically family owned , with EBITDA between A$3m and $6m. Unlike Private Equity, we differentiate ourselves through a multi-decade investment horizon. We view potential targets from an "owner" rather than an "exit-driven" shareholder perspective. Arbor Permanent Owners is targeting the investment theme of corporate succession - acquiring Great Australian family owned businesses from retiring owners. We acknowledge that this investment model is ”in vogue” across the pond in the American and European markets. There are yet to be any significant folks like us in Australia. We aspire to be the dominant player in our island nation. We believe that our edge lies in acquisitions that are too sub-scale, too operationally complex, or too long-term minded to be good bets for our private equity peers. As a result, we avoid intense competition from private equity firms, ultimately allowing for value accretive acquisition multiples between 3x and 5x EBITDA. Our playbook is simple: - Pay fair prices for great businesses; - Recruit and incentivise best in class leaders; and - Reinvest and compounding cash flows into more acquisitions. Guided by our north-star metric of ROIC > 20%, executed over a long-period of time (30 years), we will all end up with a fine result. Finally and most importantly, Arbor Permanent Owners is led by experienced founders and business operators. 𝗪𝗲 𝗲𝗮𝗿𝗻𝗲𝗱 𝘁𝗵𝗲 𝗿𝗶𝗴𝗵𝘁 𝘁𝗼 𝗮𝗰𝗾𝘂𝗶𝗿𝗲 𝗮𝗻𝗱 𝘀𝘁𝗲𝘄𝗮𝗿𝗱 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀. We have degrees, but we didn’t learn business from a textbook. We learned it from sleeping under the desk, the stress of unpaid invoices and the scramble to meet payroll. We've seen the impact of both good hires and bad ones. There’s no substitute for experience, and no faster way to gain it by building something from the ground up. Only those who have lived the journey of entrepreneurship will understand this. We can look fellow business owner in the eye and easily build mutual respect, a connection that’s difficult to describe; like a telepathy. It comes from shared experiences and mutual understanding that this game of business is not for the faint hearted, and that when it comes to pass the baton, it should be passed to the right set of hands. Arbor Permanent Owners are the custodians of Great Australian businesses.

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Arbor Permanent Owners is a decentralised holding company that is following a well-trodden playbook: investing in smaller, asset-light companies with strong market positions and predictable cash flows that can be reinvested in further acquisitions. Our focus is acquiring “Great Australian SMEs”: market leaders in a niche, typically family owned , with EBITDA between A$3m and $6m. Unlike Private Equity, we differentiate ourselves through a multi-decade investment horizon. We view potential targets from an "owner" rather than an "exit-driven" shareholder perspective. Arbor Permanent Owners is targeting the investment theme of corporate succession - acquiring Great Australian family owned businesses from retiring owners. We acknowledge that this investment model is ”in vogue” across the pond in the American and European markets. There are yet to be any significant folks like us in Australia. We aspire to be the dominant player in our island nation. We believe that our edge lies in acquisitions that are too sub-scale, too operationally unsophisticated, or too long-term minded to be good bets for our private equity peers. As a result, we avoid intense competition from private equity firms, ultimately allowing for value accretive acquisition multiples. Our playbook is simple: ✅Pay fair prices for great businesses; ✅Recruit, indoctrinate and incentivise best in class leaders; and ✅Reinvest and compound cash flows into more acquisitions with a modest use of leverage. By repeating this playbook, guided by our north-star metric of ROIC > 20% and executed over the long-term (30 years), we will all end up with a fine result. Finally and most importantly, Arbor Permanent Owners is led by experienced founders and business operators. We earned the right to acquire and steward businesses. We have degrees, but we didn’t learn business from a textbook. We learned it from sleeping under the desk, the stress of unpaid invoices and the scramble to meet payroll. We've seen the impact of both good hires and bad ones. There’s no substitute for experience, and no faster way to gain it by building something from the ground up. Only those who have lived the journey of entrepreneurship will understand this. We can see a fellow business owner eye-to-eye and immediately build a mutual respect, a connection that’s difficult to describe; like a telepathy. It comes from shared experiences and mutual understanding that this game of business is not for the faint hearted - and that when it comes to pass the baton, it should be to the right set of hands. At Arbor Permanent Owners, we are the custodians of Great Australian businesses.

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In the complex investment strategies available to Australians today, two stand out for their simplicity yet profound impact on building wealth over time: gearing and dollar cost averaging. For investors ranging from personal finance enthusiasts and retirees to stock market newbies and young professionals, understanding and implementing these strategies can significantly enhance the potential for financial growth and stability. But what makes them so powerful, especially when combined? #InvestmentStrategies #Gearing #DollarCostAveraging #WealthBuilding #FinancialGrowth #AustralianInvestors #TaxBenefits #MarketVolatility #LongTermInvesting #FinancialSecurity #SmartInvesting #FinancialPlanning #RiskManagement #AssetDiversification #PersonalFinance https://lnkd.in/dF-WWYxN

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The 2024-25 Federal Budget delivered by Treasurer Jim Chalmers is a budget for the here and now. Led by substantial cost-of-living measures and a return to industry policy, and braced by immaculate inflation forecasts, the Budget has all the hallmarks of a pre-election economic narrative. The Budget makes good strides in education and skills reform, funds long-overdue New Vehicle Efficiency standards and makes meaningful investments in mental health and suicide prevention. But there was precious little in the way of major tax reform, some welcome but relatively modest moves on gender equality, and plenty of talk but not enough action on housing supply. The latter is evidenced by the forecast of zero growth in dwelling investment in the 2024-25 financial year in the Budget assumptions. Overall, this Budget bakes in a lot of new spending. Not all of it represents good value of money. Read Deloitte Access Economics' analysis of the Budget. Stephen Smith Cathryn Lee Pradeep Philip William Gort Sruthi Srikanthan Simone Cheung 張思敏 John O'Mahony Eamon McGinn David Rumbens

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Your all-in-one solution for personal and business accounting needs. Find out why over 4000 Australians choose The Tax Factor. Book a chat with an award-winning Tax Factor expert today: ☎ 1300 829 322 💻 thetaxfactor.com.au

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What should you include on your CV as a distribution executive? For each role, key points could include: 1) Coverage - Geography: by country, state, town or region - Channel: superannuation, insurers, endowment funds, multi-asset mangers, private wealth, IFAs, brokers, family offices, asset consultants or platforms - Asset class: asset class, sub-sector or notable strategies sold 2) Track Record - Capital raised: How much did you/your team contribute over the last financial year? In your best year with the firm? - Go-to-market: Did you assist with any go-to-market strategies, either individually or as part of a team? - Structuring: Did you assist with the structuring of any products? - KPIs: Did you meet/exceed any significant KPIs? 3) Role & Team - Sales/account management: % time prospecting vs. servicing existing clients - Team: How big was your team? Were you supported by Relationship/Account Managers, BDAs or product teams onshore? - Management: Did you have direct reports? Then, your bio might highlight your passions and working style - e.g. do you love getting into the technical side of investments, are you more relationship-driven or a blend of both? All of the above might be overkill, but too often I see CVs that are nondescript and high-level. Sure, we exist for a reason - but it's always useful to give hiring managers something they can refer back to or circulate internally.

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Managing AFSL compliance is simple with effective understanding and coordination between key players. Prevention is best solution. Your RM helps achieve compliance. Here's how it works seamlessly: 1. Clear role definitions for Responsible Managers, Accountants, Auditors, and Licensees, all are registered with ASIC. 2. Tailored compliance checklist, templates and reporting, aligned with AFSL & Corporation Act ensure consistency. 3. Regular training to stay updated with regulations. 4. Efficient communication channels among key persons. 5. Ongoing monitoring and auditing. By adhering to above, we maintain high standards and protect our clients. #AFSL #Compliance #Finance #Auditing #ResponsibleManager #Accountants #Licensees #eagle888

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Western Australia's output per capita was 1.8 times that of Victoria's in 2023, compared to 1.4 times, back in 2000. It highlights some big differences in the way Australia has developed over this century so far. For these, and other interesting facts about Australia's state and territory economies, see EY's latest chart pack.  Paula Gadsby Nicholas Hordern Eloise Robertson #ausecon #newsouthwales #victoria #queensland #westernaustralia #southaustralia #tasmania #australiancapitalterritory #northernterritory

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Sydney's 2024 Not for Profit Leader’s Report on Financial Management is out now. The report provides leaders with industry findings, insights and best practice solutions to help organisations achieve long-term sustainability. Download the report now > https://bit.ly/4gxKmYb Aidan Smith #NFP #NFPLeadersReport #notforprofit #financialmanagement #nfpsector #audit #NFPcommunity #HLBSydney

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At Middleton Financial Planning, we understand the unique challenges of planning for aged care. From rising costs to government support, our expert team is here to guide you through every step. We help you create a tailored plan to ensure financial stability while protecting your loved ones’ futures. Discover how we can help you navigate aged care with confidence. Get in touch today to schedule a consultation and take the first step towards securing your future. https://lnkd.in/g92A9rVy #AgedCarePlanning #FinancialAdvice #MiddletonFinancialPlanning #ElderCare #RetirementPlanning

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