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.
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.
Stay tuned for new posts in our succession planning series every Thursday. Missed a post? Read on here:
Post 1: Planning for success[ion]
Post 2: There's selling and then there's everything else...
Post 3: Keeping it all in the family ...or branching out from the family tree
Post 4: When 'What If' Becomes 'What Now?'
Post 5: Should I stay or should I go?
Post 6: Beware of the tax man
Post 7: Freezing value = saving long-term
Post 8: What it's worth now, and how
Post 9: There's value and then there's worth
Post 10: Visualize, then plan
Post 11: The key is transparency
Post 12: Keeping up with the paperwork
Post 13: Consider all options
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About Richter : Founded in Montreal in 1926, Richter is a licensed public accounting firm that provides assurance, tax and wealth management services, as well as financial advisory services in the areas of organizational restructuring and insolvency, business valuation, corporate finance, litigation support, and forensic accounting. Our commitment to excellence, our in-depth understanding of financial issues and our practical problem-solving methods have positioned us as one of the most important independent accounting, organizational advisory and consulting firms in the country. Richter has offices in both Toronto and Montreal. Follow us on LinkedIn, Facebook, and Twitter.