Considering the value of your data during a finance raising or disposal process

The level of data and information that businesses generate is increasing rapidly. This data can be valuable to businesses in terms of making informed decisions and driving value, but it is also playing an increasing role in finance raising and disposal transactions.

Whether you are raising finance to fund your growth or to recapitalise your business or are working towards a disposal or merger of your business, your financial information will become extremely important and will be inevitably exposed to challenge from a range of parties.

Lee Humble, Associate Partner at MHA Tait Walker Corporate Finance said: “The well-known due diligence phase of any transaction will necessitate the opening of your books and records to third parties who are tasked with identifying and assessing the integrity and accuracy of the figures disclosed. But have you considered how to leverage value during this process?

“Our Data Insight team work in tandem with the Corporate Finance team, with the objective of elevating the standard of financial and non-financial data maintained by our clients. The retention and use of accurate and timely reporting can provide a significant advantage during any negotiation, and often can assist with swift decision making for all parties involved.

“Quite often a business may retain a host of databases to store information, from the obvious accounting package to sales and CRM tools and operational software. The integration of these data points can be extremely difficult and may also absorb significant amounts of time across your teams. That’s why we aim to work with our clients ahead of any transaction, to design a reporting template which is unique to their business.”

He added: “The tracking of performance, KPIs and deviations from budget and previous performance can then be interrogated consistently with a view to managing change as and when the business circumstances require. The ability to do so, with an explanation of what is happening and why, can often feature during a finance raise or a disposal due to the time lag between data provision and the potential execution of the transaction.

“This allows a business to make fully informed, quick, intelligent and measurable decisions, with a focus on what really drives value and profitability.”

For further information please contact Lee Humble, Corporate Finance Associate Partner, on 0191 285 0321 or email lee.humble@taitwalker.co.uk or Graham Dotchin, Data Insight Associate Partner on graham.dotchin@taitwalker.co.uk