Raising funds from third
parties is a task that often falls on accountants at least in part. To raise
funds successfully there needs to be a sound business case for the numbers to
support and it is important to ensure that the strategic case and the forecast
profits and cash support each other.
Once the business case is
prepared, the process of negotiation takes place; normally these are followed
up by a degree of due diligence by the external party before agreeing to the
arrangement. Whilst the due diligence process is not an exercise that will kill
a deal in itself, its an
important aspect of it.
Often due diligence is
regarded as a financial exercise. However if it is done properly, the whole
business plan will be subjected to the process, not just the numbers. The
components of this process normally include:
I have prepared separate
descriptions of my experiences of raising funds from
external sources, the job of managing the relationship with the bank
and the acquisition of SME's.