Don’t let business data derail your transaction
Frequently we meet great businesses looking to transact, whether that be to raise investment or sell in entirety, and they run off a data set which is neither accurate nor up to date. It’s no surprise, then, when deals stall for an extended period or fail to close entirely.
Investors and acquirers want reliable figures
When shareholders are looking to sell, whether that to be to trade or private equity, investors/buyers will always want a good look at the business’ figures. That’s why advisors like us forever talk about the need to prepare for such a process. Having clean, reliable figures should be the foundation for any business.
Without having this at your finger tips, you run the risk of making poor decisions and a potential deal being crippled.
The right people and infrastructure is key
Make sure you have the infrastructure and people who can provide the data you need. The latter is an area which frequently exposes issues. The accounting packages on offer go a long way to support these days, but you still need good people with an eye for detail to ensure the principles, controls and outputs make sense.
Unfortunately, too many just see this as an extra cost over and above the bare minimum compliance and lose out on these insights.
Harness the value of strong data
If you overlook the value of accurate data, you may not get the deal you want, or at least not as quickly as you’d like. This is an area where we often get involved in advance of a future deal, and we welcome a conversation with businesses looking to ensure their accounting information is robust and reliable. Undertaking a ‘drains up’ review, or even some form of vendor due diligence often pays for itself in spades.
We are here to help
Our specialist Corporate Finance team can support you with preparing your business for sale or exit and the full transaction journey. If you’re considering the next steps for your business, whether that’s raising funds or selling, we are here to guide you.
Additionally, through our expert Accounting services, we can help business owners measure what needs measuring and report what needs reporting which can ultimately add value to your systems and processes.
For any guidance or assistance, please get in touch via the form below.
