Bookkeeping in a Merger and Acquisition Partnership

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Merger and acquisition (M&A) is like getting into a marriage. Why? Both parties should take time to get to know one another, explore the risks of partnering together, and make an effort to create a relationship. One of the things you need to prepare when you’re about to enter an M&A are your books to help make negotiations go as smoothly as possible. 

Keep Your Books Accurate and Organized

If you want to look credible to your potential M&A partner, accurate and organized books will make it more attractive. This is because most merger and acquisition partners are on the lookout for a well-run company and tidy books only show you have an efficient bookkeeping process. In turn, this will reflect well on your company and your team. 

Get a Higher Price

Did you know that having your bookkeeping in order when you’re about to get into an M&A partnership will help you get a higher price? This is because the potential partner won’t need to spend time amending or updating financial records and forecasts to determine your business’s growth and profitability. 

Another way to get the best price for your company is to consider what the potential partner wants to see in your financial data. From there, you can build a general ledger chart of accounts.

When you have clear and organized financial data, the easier it will be for the potential partner to validate your operations. Furthermore, this is an easy way for you to show your potential. 

How to Get your Financial Books Accurate and Organized

Now that you have made the decision to get into an M&A partnership, it’s time to sort out your books. Hiring a professional bookkeeper will be helpful in the process. 

A bookkeeper will offer professional guidance to help you understand your business’ finances and avoid any red flags that could delay M&A deals. 

Furthermore, a bookkeeper will help you avoid any last-minute issues. You also don’t need to scramble to get your books and tax returns up-to-date. 

With the help of a bookkeeper, it will also help you position your brand confidently out there because you know and understand your numbers. Finally, it will help ensure that your balance sheet, accounts receivable, and payables are accurate, and all your income is well accounted for. 

Keep in mind: When your bookkeeping entries are all over the place, it won’t be easy for a potential buyer or partner to negotiate with you. 

Conclusion

Bookkeeping plays a significant role in the merger and acquisition process. It can be a complicated process, which is why you need to ensure you make the process run as smoothly as possible. You can do this by hiring a bookkeeper that can help get your finances in order. When your books are organized and accurate, negotiations will run as smoothly as possible. Even better, it will help you get the best price for it. Your financial records say a lot about your business. Make it look even more attractive with accurate and up-to-date financial records. 

Get reliable bookkeeping services in Rochester, NY today. Bianchi & Associates has qualified and experienced bookkeepers that follow generally accepted accounting principles to ensure your records meet financial laws and regulations. Contact us!

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