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In this insightful episode of the FP&A Unboxed Podcast, host Tejas Parikh speaks with Deepak Hooda, a Commercial Finance Director with a history in Private Equity Specializing in Multiple PE Exits and M&A. Deepak brings over a decade of experience in the M&A and exit environment, offering unique perspectives on the financial, operational, and strategic elements crucial for a successful business exit. He shares his expertise on preparing businesses for sale, the importance of telling a compelling business story, and the critical role FP&A plays in supporting decision-making.

Deepak also discusses the need for system maturity, effective governance, and incentivizing teams during the exit process. This episode is packed with practical advice for finance leaders navigating exits and M&A, emphasizing the importance of a well-prepared business and strong communication between teams and stakeholders.

Key Takeaways

Storytelling in Exits: A compelling business story can make or break a transaction, even in challenging times.

Aligning KPIs: Understanding headcount, costs, and performance helps craft a convincing growth narrative during exits.

Technical Competency: Knowing accounting standards and revenue recognition is critical for preparing for a successful exit.

System Maturity: Relying on Excel models during exit signals risk; robust systems ensure smoother transitions.

Team Incentives: Rewarding teams, even if the exit doesn’t go as planned, maintains morale and prepares for future opportunities.

Financial Cycles & Reforecasting: Flexible forecasting is vital for aligning with buyer expectations and adjusting during the exit process.

Noteworthy Quotes

"The story is the first thing; without a compelling story, no one will buy your business." – Deepak Hooda

"Having a solid financial and operational story, even after a tough period, can greatly aid in securing a successful exit." – Deepak Hooda

"In M&A, transparency is key. If you're transparent about your challenges and improvements, buyers are more likely to trust your business." – Deepak Hooda

"If your systems aren't up to date and you're relying on Excel, you're sending a red flag to potential buyers." – Deepak Hooda

"Team incentives are critical; they keep everyone motivated through a tough exit process." – Deepak Hooda

Key Timestamps

[00:00:00]  Coming up next & Call to Action

[00:05:17]  Deepak’s Journey in Commercial Finance & Private Equity

[00:07:10]  The Role of FP&A in M&A & Exit Strategy

[00:09:43]  Telling a Compelling Story for Buyers

[00:11:00]  Balancing Transparency and Optimism in Storytelling

[00:13:30]  Measuring Influence and KPIs during Exit Planning

[00:17:12]  The Importance of Understanding Complex Revenue Streams

[00:19:40]  Creating a Robust Financial Cycle & Reforecasting

[00:22:24]  System Maturity & Leveraging Technology in Exit Preparation

[00:27:15]  Linking Staff Costs to Business Strategy

[00:30:23]  Team Structure & Mindset During an Exit Process

[00:35:25]  The Importance of Incentives & Recognition During the Exit Process

[00:39:12]  Preparing Your Team for Future Exits

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Website: https://aksharconsulting.co.uk/

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