Operational and Financial Reporting Work After You Source a Deal
May 30, 2023
See why recommend Signature Analytics as a partner to help operational and financial reporting, post-close.
Cost savings during a business acquisition are only part of the value proposition for firms seeking long-term bottom-line financials. After completing the deal, you must be especially diligent to get an optimal ongoing return on your investment.
CAPTARGET has spent more than a decade helping buyers source deals cost effectively, but our commitment to our clients doesn’t end when the deal is done. We are vested in ensuring your business model remains strong and that you get a high-value ROI from day-to-day operations after the fact.
That’s why we recommend Signature Analytics for ongoing operational and financial reporting work.
Meet Signature Analytics
One of the most essential cornerstones of any business starts with precise daily financial management. Accurate numbers lead to the best possible business decisions in a company poised to pivot, grow, and engage in forecasting and planning scenarios. Outsourcing this critical function to industry experts frees owners and executive management to focus on other areas for the long-term health of any company.
“Transitional periods, whether from growth, investment, acquisition or restructuring are crucial times in a business’ lifecycle. You need accurate, relevant and timely financial data to ensure that the decisions you’re making are informed and clear-eyed. That’s where Signature Analytics comes in. Outsourcing your accounting to our team of experts gives you flexibility and experience on day one, when you need it most. ”
-Jason Kruger, Founder & President - Signature Analytics
With an outsourced accounting team and CFO advisory services from Signature Analytics, you get accurate, relevant, timely reporting and financial insights to help you make those intelligent business decisions.
Since 2008, Signature Analytics has had a proven track record of putting the right people, processes, and technology in place to create the trusted framework you need to receive accurate, relevant, and timely data. Signature is now an Inc. 5000 outsourced accounting services firm that provides you with unbiased insights and more bandwidth for your existing team to operate at peak performance levels.
Signature Analytics can provide your newly acquired firm with the following services:
- Initial assessment. The 30-day assessment period is Signature’s deep dive into how your people, processes, and technology work together to support your accounting functions. During this period, Signature will work with you on dashboard and custom reporting development and increase efficiency with better integration of accounting data across technology tools.
- Monthly close process. This includes a focus on calendar month activity that includes quality control with senior level accountants validating the work.
- Budgeting and expense controls. The emphasis is on reality-based budgeting and accurate and complete projections. On the back end, Signature monitors and reports on budgeted versus actual numbers and then re-forecasts based on that information.
- Documenting SOPs. You’ll get assistance developing clear standard operating procedures to ensure consistency and efficiency in your company’s accounting operations.
- Audit Support. Signature manages the audit preparation process, preparing schedules, financial statements, and footnotes.
- Cash flow management and day-to-day accounting. Signature analyzes sources and uses of cash and uses a 5-Step Process to get a blueprint of your company so that the right customized processes are put in place.
- Key performance indicators (KPIs) tracking. Signature tracks KPIs to improve your business’s profitability. That may include gross profit margin, net profit margin, operating cash flow, working capital, and return on investment. Monitoring these KPIs provides valuable insights into your company’s financial performance and helps identify areas for improvement.
Signature Analytics Success Stories
Capital infusion is crucial for company growth, but timing and amount can be challenging to determine. Signature Analytics provided a solution to help a broadcast media company identify their capital requirements and plan for future growth.
The broadcast media company needed capital infusion to support growth but was uncertain when and how much capital would be required.
Signature Analytics’ Solution:
- Generated a detailed five-year financial projection model
- Developed a strategic business plan and budget
- Worked with the company’s management to create a financial model that estimated revenues and expenses over the next five years
- Identified capital requirements and periods of negative cash flow
- Calculated the total capital required to avoid running out of cash
- Provided insights for cash flow management
- Determined that the company would require additional capital even after reaching profitability
The financial model identified capital requirements that were 50% higher than anticipated, giving the company the correct figure to raise the necessary capital. Without this financial guidance, the company could have faced significant challenges that could have changed the course of their business.
Signature Analytics provided a comprehensive financial solution that allowed the broadcast media company to make informed decisions about their future growth. By developing a strategic business plan, projecting cash flow, and identifying periods of negative cash flow, the company was able to manage their finances effectively and raise the capital required to support their growth goals.
Investor Reporting: A Case Study
Investor reporting is crucial for companies that have recently been through mergers and acquisitions (M&A), or received private equity (PE) or venture capital (VC) investments. These types of events often require increased transparency and communication with investors to ensure that they remain engaged and committed to the company's strategic initiatives. In this case study, we explore how Signature Analytics helped a biotechnology company enhance its investor reporting and strengthen its investor relations, leading to improved decision-making, more meaningful discussions, and continued support for its strategic initiatives.
A biotechnology company lacked valuable financial information to facilitate Board of Directors meetings, making it difficult to communicate with shareholders effectively.
Signature Analytics’ Solution:
- Prepared professional-looking management reports
- Incorporated graphs and charts to help visualize data and provide commentary on significant transactions
- Provided a foundation for meaningful conversations with the board
- Distributed the report to board members before meetings to help make appropriate decisions
- Enabled proactive communication with investors by providing consistent, accurate, and timely financial updates
- Strengthened investor relations and secured continued support for strategic initiatives
Signature Analytics' reporting enhanced transparency and trust with investors, leading to more confidence in the business's future direction and greater peace of mind. The CEO felt better prepared for board meetings, leading to improved decision-making and more meaningful discussions. Ultimately, the company was able to strengthen its investor relations and secure continued support for its strategic initiatives.