As European companies explore new financing opportunities and prepare for expansion, the relationship between business strategy, financial forecasting and investment decisions remains an important consideration for management teams.
Raluca Ioana Man, a Cyprus-based business and brand strategist, board adviser and founder of RSEVEN, was among the speakers at the Financing & IPO Summit 2026, held in Bucharest on 23 October.
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Organised by VERTIK Group, with the European Investment Bank Group as strategic partner, the second edition of the summit brought together business leaders, investors, financial institutions and advisers to examine alternative financing, private debt, investment opportunities, corporate governance and access to capital.
Connecting Business Strategy With Investment Decisions
During her presentation, “Forecasting as a Strategic Tool for Financing Growth and Investment Decision Making,” Man addressed a challenge facing companies seeking expansion: how to translate ambitious business plans into credible financial forecasts and informed investment decisions.
Her presentation explored how forecasting, scenario planning and management judgement can support businesses when evaluating financing requirements, investment opportunities and different growth strategies.
“Companies often approach forecasting as a financial exercise, something prepared for budgets, banks or investors. But its real strategic value lies in helping management understand what could happen, what the business can sustain and which decisions need to be made today,” Man said.
To illustrate her point, she used the example of a hypothetical company targeting 25% revenue growth through international expansion. However, when the demand, sales conversion, operational capacity, and cash requirements were actually examined, the underlying assumptions supported a forecast of just 12% growth.
The question she brought forward in response to this example was: should the company commit its entire investment budget immediately, or should the expansion be in stages and release further capital when the results justify further investment?
Man identified three main weaknesses in financial projects. The first is unrealistic growth assumptions. The second is confusing profitability with available cash. The third is failure to consider what happens when the assumptions behind a forecast change.
Investment Readiness Starts Before The Financing Process
Another central message was the importance of preparing businesses strategically before approaching investors or choosing financing instruments.
Access to capital can accelerate expansion, but financing decisions must be aligned with a company’s commercial objectives, financial capacity and long-term plans.
“Before asking how much capital a company can raise, management should understand how that capital will be used, which assumptions support the investment and what happens if the business performs differently from expectations,” Man explained.
This approach is especially relevant for established businesses looking at international expansion, acquisitions, external investment or even a potential future listing on a stock exchange.
Different financing options carry different implications for businesses. For instance, bank lending and private debt require careful assessment of cash flow and repayment capacity. Equity investment, on the other hand, involves considerations around valuation, ownership, governance and future returns, while an initial public offering (IPO) requires even greater preparation, transparency and corporate governance.
One mistake Man stressed is choosing a financing option simply because capital is available, without adequately considering its long-term implications. Businesses planning significant capital expenditure should understand when an investment is expected to generate cash and whether the resulting financing commitments will remain sustainable.
Relevance For Cyprus And International Businesses
The discussions at the summit also have implications for Cypriot businesses seeking international expansion, investment or new opportunities for financing.
Cyprus has a diverse business community, says Man, from established family businesses to internationally active companies, as well as a growing technology sector. However, companies are at different levels of investment readiness.
Through her advisory work, she has encountered successful businesses with strong commercial relationships and experienced founders that sometimes lack the strategic planning or financial preparation required for their next stage of growth.
She also identified reliance on traditional financing methods and limited exploration of alternative funding options as challenges for some businesses.
“What once helped a business succeed in Cyprus may not be enough to help it compete internationally. Expanding into new markets requires a different level of preparation, management capability and understanding of the market you’re entering.”
So, for companies looking to expand internationally, their decision-making process should start with understanding the new market conditions, evaluating the financial alternatives available, and assessing the risks associated with the growth.
Building Stronger Businesses For The Next Stage Of Growth
The Financing & IPO Summit 2026 provided a platform for dialogue between businesses seeking capital and the institutions, investors and advisers leading regional and global corporate growth financing.
Reflecting on the discussions, Man emphasised that access to capital creates opportunities but businesses must also understand the financing options available to them and prepare adequately before pursuing investment.
“The objective is to build companies that understand their decisions, can explain their assumptions and are prepared to manage the consequences of growth. That is what makes forecasting valuable for management, boards and investors.”
About Raluca Ioana Man And RSEVEN
Raluca Ioana Man is an international business and brand strategist, board advisor and Founder of RSEVEN, a Cyprus-based strategic advisory consultancy.
With nearly 20 years of experience, she advises business owners, executive teams and organisations on corporate strategy, business development, brand positioning, strategic forecasting and decision-making.
Alongside her advisory work, Man serves on several boards in Cyprus and internationally, contributing her expertise in business strategy, corporate governance and business development.
Website: www.rseven.co.uk
