10 steps to maximise the value and saleability of your business – Step 7
Although it may seem trivial, it is fundamental for you, as a business owner, to consider the reliability of your management and financial information.
Step 7 – Make sure your management and financial information and reporting is relevant, complete and reliable
Delegating your management functions may be intimidating, but it is an essential part of driving your company’s growth and can be pivotal during a sale. It is less daunting if you are fully aware and informed of everything that’s going on within your company.
It is essential to implement an efficient management and financial information system that provides you with accurate information as and when needed. If you have delegated effectively, and empowered your management teams sufficiently to operate the business on a day-to-day basis, this information is vital for them to make good management decisions going forward.
A buyer will need to see there is a good history of complete, accurate and reliable information, covering all aspects of the company’s performance.
It would be prudent to provide full audited and consolidated company accounts to prospective buyers when available, that show your historical performance.
In the eighth instalment, we will discuss how it is important to run your business as though selling is an option and not a necessity.