Ready to expand?
To proceed smoothly through a business acquisition, many factors come into play. Above all, good infrastructure is crucial. This is especially the case with basic systems and financial reporting.
Wilkinson Accounting Solution is a business accounting firm that specialises in management consultancy for businesses. Our team of professional business accountants and financial professionals are especially good at supporting companies through mergers and acquisitions.
Our business consulting services are especially useful if your company is undergoing or planning for a business acquisition. We have seen many clients successfully go through multiple mergers and acquisitions, and our professional guidance helped provide that advantage.
We help many companies all around the UK. Whether you own a large firm or SME, our acquisition accounting services will set your business up for a successful business acquisition or merger.
Are you a business owner or entrepreneur looking to grow by acquisition?
Buying a business is a great way to expand growth quickly but there can also be a lot of risk associated to this if you choose a bad deal, therefore ensuring you conduct full due diligence is key to reduce the risk of failure post acquisition.
Business are generally built successfully based on the current owners, therefore it is of interest to the acquirer to find out how stable the business will be without the owners and how it will be run effectively when they leave, especially if you are not looking to work in the business yourself!
Once you go live with your deal, do you know the business has the right management team in place? Our services ensure you get set up and have the ability to run real time information that will provide key financial data to let you make informed decisions
Wilkinson Accounting solutions act as Acquisition CFO’s. We either work independently on deals, or can also team up with in house or other finance teams, to support large growth projects. Our services offer a mix of financial, tax and operational due diligence, along with CFO and virtual finance packages to support businesses post acquisition.
Financial due diligence is key to reducing the risk of M&A deals failing post-acquisition. Wilkinson Accounting Solutions specialise in helping business owners build robust financial forecasts that will suffice the appetites of lenders but more importantly give comfort to the acquirer that the deal is financially viable. Our services include a mix of support including:
- 2 year back and 5 year forward cashflow planning to support funding
- 3rd party independent balance sheet review looking for key risks in the balance sheet that could cause a cash or P&L impact
- Adjusted EBITDA analysis and net asset valuations
- Calculations on surplus cash for deal close
- Analysis of key ratios such as stock, debtor and creditor days
- Support on highlighting risks and ops to support potential financial warranties in the SPA
- Highlight risks and ops to support potential financial warranties in the SPA
Our tax due diligence services ensures that potential key tax risks on deals are highlighted and the relevant clauses are built into the SPA. The complexity of the deal will be dependent on the size and industry, therefore our packages are bespoke, key areas we can support on are:
- Review of proposed acquisition, providing support on tax implications of deal structure
- Advice on acquisition structure and support with pre and post transaction tax planning
- Review accuracy and compliance historic taxes including Corp tax, VAT, CIS and PAYE
- Review correspondence relating to HMRC enquiries and investigations to assess risks
- Review tax warranties and indemnities on current and prior sales
- Review employment status of contracts, ensuring company is not in breach of IR35 rules
Operational due diligence is key to getting into the ‘nuts and bolts’ of a company. Once lending is agreed in principle you want to identify if the high level forecasts includes correct information such as trends, additional costs required to sustain the business post acquisition etc. Our service includes:
- 12 month detailed forecasting expanding on the high level information for funding
- Discussions with key stakeholders in the business identifying potential risk such as additional resource required to run the business post acquisition
- Analysis of overheads and fixed contracts
- Sales and margin analysis building a forecast ensuring phasing is accurate to support realistic cash in vs cash out
- Key assumptions documented, with actionable targets and objectives to keep the deal flowing
- Cashflow strategy support, with recommendations on actions you can take to manage cash flow post acquisition
- Analysis of the staff to ensure decision makers are available to manage sales and margin targets
Once your business deal is closed there is now the complexity of running a business post acquisition. If you are not looking to run the business day to day then you need to feel confident you have the right financial information and management structure in place to provide output on business performance but more importantly cash positions.
Good news we do not just leave you to it after the deal closes, we stay onboard as a dedicated virtual team and can offer a variety of services including
- Bookkeeping support to tidy up ledgers, ensuring information is accurate for cashflow and KPI reporting
- 12 week rolling cashflow forecasts, including weekly calls with key decision makers in the business providing output of cash position.
- Management accounts and variance analysis –to assess actual trading vs the detailed budget
- Month end reviews with key stakeholders and businessowner/(s)
- KPI trading reporting ensuring operational teams have insight into how they perform
If you are planning more than one acquisition then you will need to consider reporting under a group structure. As you gain more businesses, you can start to benefit from economies of scale and group trading, however this can involve more complex accounting and requirement to merge systems. We have a skilled team that can support with helping our customers build a group including:
- Entity structures – Including reporting and statutory set up
- Group cashflow – How to align and consolidate cashflow including intercompany transactions
- Group management accounts and KPI reporting – Ensuring company KPI’s and financials are consolidated so management can see entity and group performance
- Financial systems – We can support with project management and systems reviews to help align long term reporting
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