Fractional CFO for Agribusiness and Agri-Food Processors

Alehar shows an agribusiness the profit on each crop, product and market. It starts with the price you get and takes off the cost of growing or buying, processing, storage and freight. You can see which parts of the business make the money, which lose it, and where to put your land, plant and cash next year.

Alehar builds a cash flow plan for an agribusiness that follows the season month by month. Money goes out first for inputs, purchases and wages, and comes in later from sales and exports. You can see how much funding you need at the peak, when to borrow and when to repay, and what a poor harvest would do. The plan is set out the way your bank wants it.

Alehar helps an agribusiness protect its profit from price and currency swings by showing each month what you have bought, what you have already sold ahead, and the currencies involved. It shows what a price or currency move would do to your profit. Alehar then recommends how much to lock in, through forward sales, contracts or hedging, and goes through the options with your bank.

Alehar tells an agribusiness whether processing or exporting itself would pay by building the business case. It covers what the plant or export operation would cost, the extra value you would earn per ton, how many months a year it would run, and the customers you would need. It also tests a weak season and a slow start. You can see the payback and the funding needed before you commit.

Alehar helps an agricultural exporter manage the risk of late-paying buyers by showing how much each buyer matters to your profit and cash, and what a late payment or a lost buyer would do to the season. It then recommends ways to lower the risk, such as better payment terms, letters of credit and export credit insurance. You also see which buyers deserve more of your volume.

Alehar helps an agribusiness plan for a bad season by testing your plan against lower yields, lower prices or both. You can see how long your cash would last and which costs you could cut quickly. Alehar then recommends the reserves, credit lines and insurance cover to have in place, so a bad year does not put the business at risk.

An agribusiness is valued in two parts: the operating business, and the land and buildings. Alehar values each separately. It uses your profit, contracts and processing assets, and the prices paid for similar businesses. You can see what an investor is likely to offer and where the value sits. Alehar can then run a sale or a minority investment under its Selling your Company or Raising Equity or Debt service.

An agribusiness benefits from an outsourced or virtual CFO who plans around the season. Alehar gives you a senior finance lead and a team. They review profit by crop, product and market, the seasonal cash plan and the bank relationship with you each month, and agree the priorities. Owners get what they would expect from a virtual CFO or an interim CFO. Your accountant keeps the records, payroll and tax returns.