The FP&A Playbook for PE Exits to Align Forecasts, Systems, and Strategy with Deepak Hooda
Get out of Excel Hell and enhance your financial analytics skills with our FREE Introduction to PowerBI for Financial Analysis: https://bit.ly/powerbi-financial-ananlysis-trainingIn 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 TakeawaysStorytelling 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 HoodaKey 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 ExitsFOLLOW OUR GUEST DEEPAK HOODA ON:LinkedIn: https://www.linkedin.com/in/deepakhooda/?originalSubdomain=ukFOLLOW OUR HOST TEJAS PARIKH ON:LinkedIn:
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