02 Jul, 2024

Should I conduct a business review?

A business review can enhance performance by identifying strengths, weaknesses, opportunities, and threats. It aids in strategic planning, operational efficiency, financial health, risk management, and customer satisfaction. Our team talk you through the process for a food business.

ifac recently conducted a comprehensive business review of a food business to assess each part of its business. The business in question had multiple business activities and each required scrutiny. As a result, ifac was well placed to advise on the efficiency, profitability and ultimately; the viability of each part of the business. Below is an outline of the essential elements for a successful business review:


Key Elements of an ifac Business Review

Reviewing Current and Past Accounts:

  • Analysing historical financial data to identify trends and patterns i.e. issues with stock control;

  • Identifying areas of concern i.e. production labour efficiency;

  • Following discussions with the client, provide recommendations to remedy or improve the functions of the business.


Analysing Each Product's Performance:

  • Assessing sales data for individual products to determine their contribution to overall revenue;

  • Identifying high-performing products and reviewing the real contribution being made to the business i.e. determining if the high sales volume products are making a sufficient margin and contribution to the business;

  • Reviewing products that may need re-evaluation or discontinuation.


Using Up-to-Date Data:

  • Ensuring the analysis is based on the most recent financial information;

  • Incorporating real-time data to make informed decisions.


Conducting Break-Even Analysis:

  • Assessing the viability of each business activity i.e. a business may have a retail location and a production facility. Each needs to be assessed individually;

  • Identifying the break-even point of each business activity i.e. ensuring that all costs incurred in the business are correctly allocated and a break-even point is clearly identified;

  • Using this analysis to set sales targets and review current pricing strategies.


By focusing on these key elements, we gained a thorough understanding of the food business's financial health and identified strategic opportunities for improvement. Our approach ensured a detailed and actionable review, providing valuable insights to drive the business forward.

David Leydon

Talk to David Leydon

Head of Food & AgriBusiness087 9908227davidleydon@ifac.ieLinkedin