“Due Diligence” information – What do I need to know. Part 10

The last bit of formalised information that can be added into the BusinessPortal-SA website and that is critical to address during a due diligence relates to Financial Information and Invoicing. This information is obviously highly sensitive and is likely to be considered well into the discussion and negotiation between parties. This level of information will require that a trusting relationship has been firmly established.

When considering Financial information there are several important aspects. How much money does the company have currently and how certain are cash inflows? How much access to credit does it have and how has that credit been dealt with historically? How much money has the company generated historically and how much money might it generate in the future? To this end the BusinessPortal range of websites allow data on the current state (at data entry which gets tagged in the BusinessPortal range of websites) of bank accounts to be entered and swapped between negotiating parties. This information relates to account types, interest rates on positive- and negative balances, balance and credit facilities. It also gives an indication of current (at data entry) outstanding invoices and income recovery rates which is a telling indicator of income security (especially in the face of late- or non-paying clients).

Invoicing data is split into historical and forecast data which space for monthly data for the last and next year and annual data for the preceding and following 4 years. It is also split up per product or service. This information will tell the reader which products/services are the biggest money spinners (and thus which the business is most dependent on) as well as whether invoicing is seasonal.

9 Fiancial Info

 

Business Invoicing Information

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