702 Business Accelerator

For many entrepreneurs, the early stages of start-up saw us using our personal finance and credit facilities in our names to get the business off the ground. Very few entrepreneurs allow for a transition across from personal to business to happen cleanly and neatly. Many live, in part, in their businesses. Yet, you cannot have your cake and eat it. When it comes to a sale, your historical numbers, those reflected in your audited financial statements suggest the rue performance of the business. It’s these numbers that impact your valuation irrespective as to how they came about. Clean books mean clean, maximised performance. Lived in the business books, suggest for the same business, poorer performance. Finding the best approach is what I asked Shane Prinsloo, co-founder and director of BPAG…

It’s all in the number and the numbers, if properly generated don’t lie. If this is the case, build your bookkeeping and accounting capability, preferably through a service provider who does this as a speciality, properly. Clean numbers, properly prepared make for clean sales. Uncertainty in numbers actually reduces the price, leads to tougher negotiations and lower valuations. When you intend selling, set a time line and make sure that you have a long enough period to clean up your books.

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