How is Due Diligence Important in Growing and Scaling Your Business?


 

Understanding Due Diligence and knowing why its important for businesses to undertake this process. 

With over 50 years of accumulated experience at Barclay Pearce Capital we have summarised a starting point; 

 

What is the meaning of Due Diligence?

Due diligence is the process in which a business will verify, investigate, or audit a company in order to confirm all relevant facts and financial information about the business. This allows greater insight into how the business operates and to establish if there is an opportunity to explore.

 

The only way to do great work is to love what you do - Steve Jobs

 

What is involved in Due Diligence?

  • Assessing Financial Documentation - Most companies spend the due diligence period looking at and confirming financial reports. This includes all documentation and accounting information, ensuring all documentation is up to date and accurately portrays numbers that were disclosed during the deal-making stage.

  • Business Sustainability - Cash flow management and long-term business sustainability are important aspects to due diligence. Careful analysis of previous years of  data to establish if the business model is able to sustain and able to produce growth. 

  • Business Scalability - True scalability in business allows for expansion and revenue growth while minimising increases in operational costs. Even if you’re not ready to grow right now, there are things you can do to set yourself up for scalable growth and success.

  • Management/Board - Evaluating each individual's effectiveness in contributing to the organisation's strategic objectives. Assessing company management is crucial when closing business deals.

What happens after Due Diligence?

After Due Diligence findings this is the exciting time for businesses. After Due Diligence is completed this is when you would initiate your go to Market Strategy. This can be done in a variety of ways including Raising Capital, Roadshow's, Marketing Campaign's.

 

Barclay Pearce emphasises 'the right people with the right solutions'  which will allow not only us but also you to focus on what we both do best and to get the desired result.

 

If you would like to talk about how your company gets to this stage, book in for a call.

 

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