The key is transparency
Much like your car needs regular oil changes to keep it running optimally, regular audits and careful financial reporting can help ensure your business is running at its peak. It’s crucial to have the proper reporting and assurance standards in place at any point in the business cycle, but even more so when you are considering a potential sale.
Audits add credibility to your financial information. A quality audit can aid in your decision-making and offer insights into reducing waste, tightening controls or spotting trouble before it occurs. A well-conducted audit is also a key tool when dealing or negotiating with banks, investors, joint ventures or potential buyers. The more open and organized your books are, the better your chances for obtaining financing or attracting the right buyer, whenever that time comes. Transparency adds weight to your selling power.
“Transparency adds weight to your selling power.”
Staying on top of the latest financial reporting regulations is also important in the lead up to a sale. Accounting standards have become much more complex in recent years and if your company doesn’t adhere, you may end up facing major challenges that could affect your selling price. To ensure you’re compliant, a qualified professional can help your management team through the process on timely and specific issues, or with entire projects, regardless of the accounting standard (ASPE, IFRS, US GAPP), or financial reporting and continuous disclosure requirements under specific securities regulations (AMF, SEC). With the right guidance and meticulous financial reporting structures in place, you will be better positioned to negotiate when it comes time to sell.
Read more articles on business succession planning: