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Business Plan
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Engagement Risk
Consideration Points
Níall Fitzgerald
Practice Consulting
01 – 637 7382
www.charteredaccountants.ie
EDUCATING
SUPPORTING
REPRESENTING
This is your clients…
.....most important kick in the game
Three Key levels of Engagement
1. Hands off Advisory Role
2.
Management of Preparation of Plan
3.
Facilitator on the full NAMA Process
Even the most accomplished professional…
...can miss the most obvious risk
Every great achievement…
...started with a piece of paper
Everybody is liable….
....but nobody is to blame!
No one has a corner on success…
..It is his who pays the price
What is the shortest word in the English Language…
....That contains the letters “ABCDEF”?
Progress payments, especially in advance…
...are now the norm across many professions
Investment Business Authorisation:
...are you engaging in corporate finance advice?
(e.g. advising on valuation of shares?)
Sample Paragraph in Engagement Letter re Corporate Finance:
As part of the continuing professional services detailed in this letter, we may
periodically be asked for, and give, investment advice which is an incidental part
of those other services. We are regulated in our conduct of Investment Business
Regulations issued by the Institute of Chartered Accountants in Ireland which is an
Approved Professional Body under the Investment Intermediaries Act 1995
We would advise you that there are risks attached to all types of investment and
any recommendations made by ourselves do not give an express or implied
warranty or guarantee relating to the financial return of the particular investment
recommended.
Contd: Sample Paragraph in Engagement Letter re Corporate Finance:
In the case of the corporate client some of the services which we may provide
would be regarded as being carried on for a corporate finance client or non private
client in the course of corporate finance activities. The meaning of these terms is
set out below. Under the Investment Business Regulations services provided as
part of such activities are subject to a system of regulation which differs in certain
material respects from that for investment business generally.
If you agree to be treated as a corporate finance client or non private client then in
respect of investment business carried on as part of such activities you will enjoy
the general protection afforded to a corporate finance client or non private client
rather than the protection which may be appropriate in other circumstances.
Contd: Sample Paragraph in Engagement Letter re Corporate Finance:
We are satisfied that we may properly regard you as a corporate finance client or
non private client and by signing this letter on behalf of the company you agree to
be treated as a corporate finance client.
Corporate finance activities include:
•
general corporate and financial advice or assistance to a business or its
associates;
• valuations or appraisals of assets, businesses or investments;
• raising finance;
• management buyouts or buy ins;
• company restructuring.
Contd: Sample Paragraph in Engagement Letter re Corporate Finance:
A corporate finance client or non private client is any client, whether a company,
association, partnership, individual or group of individuals, for whom we perform
corporate finance activities, provided that the client has agreed the terms of, and
signed, a corporate finance engagement letter.
Representation…
...of the facts
De-Engagement Letters:
Engagement Letter Helpsheet
www.charteredaccountants.ie/practice-consulting
Helpsheets
Thank You
Níall Fitzgerald – Practice Consulting (01) 637 7382
Niall.Fitzgerald@charteredaccountants.ie
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•
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•
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•
•
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•
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Order by Contacting Níall Fitzgerald on (01) 637 7382