What Is Corporate Finance Consulting?

Malcolm Tatum

Corporate finance consulting is a specialized form of business consulting focusing on providing assistance and support to companies that are dealing with various types of financial decisions. The scope of the consulting will vary, with some firms focusing on helping companies evaluate and revamp the way they are managing company finances, while others specialize in assisting owners with sales and exist strategies. In any situation, corporate finance consulting works to provide business owners and officers with the information and tools they need to achieve the desired end.

Corporate finance consultants typically hold at least a four-year degree in finance, management, or another relevant subject.
Corporate finance consultants typically hold at least a four-year degree in finance, management, or another relevant subject.

One example of corporate finance consulting focuses on assisting new companies to organize effectively so they can compete in the marketplace. Within the scope of this particular application, the consultant will usually assess the nature of the company, help the owner develop goals, and even aid in the creation of a viable business plan. At times, the corporate finance consulting will extend to advising the new company on how to go about connecting with potential investors who can provide venture capital to help the business operate as it begins to build a clientele.

The idea of corporate finance consulting is not limited to helping new companies become established. Older businesses may also work with consultants to evaluate their current operation, especially in terms of how finances are arranged. In this scenario, the consultant will likely assess the accounting process, the nature of assets held, and make suggestions on how to position the company more efficiently in terms of the use of cash flow, how to generate returns from various holdings, and even how to use corporate bank accounts to better effect. Often in this scenario, the object of the corporate finance consulting is to help the business position itself either for growth due to expansion or to prepare for an upcoming period of time that is anticipated to be somewhat difficult for the business financially.

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It is even possible to use corporate finance consulting when there is a desire to sell or shut down a business operation. Here, the goal is to aid owners in divesting the assets of the business, finding buyers for the business as a whole, or otherwise systematically becoming free of the business enterprise. To this end, the consultant may aid owners in finding potential buyers, arranging the company so that it is attractive to those buyers, or even developing a process for incrementally selling off assets in anticipation of closing the company completely. With this and other functions, the consultant may contract to work with the client in a consulting capacity only, or may provide ongoing support during the process of carrying out the recommendations. This means that the consulting period may range from as little as a few days to several years, depending on the nature of the tasks involved.

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