Avoiding Accounting Hell for Small and Midsize Businesses
You'll love hating this exposé.
It can help you anticipate risks during due diligence. And then solve post-completion problems.
For decades, I've been keeping a log of the pitfalls searchers detect before deals are done. And the costly obstacles that arise post-completion. My checklist, below, details them.
Searchers can save lots of time and aggravation using this checklist. It points to the trouble spots, which you might see before you buy a business. Or, afterwards.
What kind of problems? Mismanagement, undesirables, inadequacies, incompetency, unnecessary risks, unrealistic foresight, errors and omissions, governmental annoyances, etc.
What's the penalty for searchers? Buying the wrong business or buying the right business on the wrong terms.
Accounting is foundational. Financial reporting won’t be right if the accounting isn’t right. (Garbage-In / Garbage-Out)
Do-it-yourself accounting is common, and it's one of the most costly risks.
And that will adversely affect: Due diligence, financing, valuation, negotiating, personal guarantees, buy/sell agreements and post-completion operations.
The Checklist###-###-#### https://tinyurl.com/w28nw3f4
Let's Zoom if you want to talk about it.
67 Accounting Risks to Detect During Due Diligence for Buyers and Sellers
by a professional from University of Southern California - Marshall School of Business
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
78 views
8 comments
Sign in to see all replies.
Create an account.