Emerging & Growth Markets
Featured Topic: 10 Challenges for Emerging & Growth Markets
1. Capture Value from M&A – Growth-stage companies are being presented with numerous deals. While generating significant value through mergers and acquisitions (M&A) is difficult, many companies succeed. One factor that can increase the chances for success is spending adequate time performing due diligence on aspects of the business beyond the financials. This allows management to speed up the integration process and focus on value drivers that will deliver the greatest returns.
2. Meet Reporting Deadlines – Today's accounting teams must balance day-to-day operations and strategic initiatives with changing regulatory requirements and accelerated SEC reporting deadlines. These tasks must be performed in a timely and consistent manner—and often under the stress of annual audits. A scalable financial and regulatory reporting strategy that aligns with a business's unique aspects and growth projections will reduce risk and strain on resources.
3. Reduce the Cost of Compliance – Finding cost-effective ways to comply with SOX and other internal and external obligations is important for companies of any size. Cost savings can fund investment in other areas deemed more critical to positioning for a market recovery. Whether a company is planning an IPO or already listed, SOX compliance can be affordable and non-disruptive. Cost-saving options include focusing on key controls, aligning efforts with auditor requirements, and using affordable third-party or in-house tools. SOX investments can also be leveraged to identify process inefficiencies and capture data needed to satisfy other compliance obligations.
4. Fill Resource Gaps – Unforeseen leadership or staff changes in accounting, finance, IT, and other areas should not impact daily operations. But maintaining momentum and eliminating risk during a transition can be difficult. Finding the right individual with the necessary technical skills and background to fill a vacant role can be time-consuming, costly, and detrimental to the quality and efficiency of operations. Companies should have access to third parties that know the business and can fill roles quickly to ensure that operations run smoothly.
5. Gain Clarity of Biggest Enterprise Risks – Enterprise risk management (ERM) can mitigate exposure to financial, strategic, operations, and compliance issues, and provide management with the information needed to make better decisions. With rating agencies like S&P now evaluating ERM programs, the push for strengthening and enhancing risk management is no longer a "nice-to-have." It directly affects the cost of capital. Implementing ERM does not have to be a time-consuming, resource-intensive effort. Opportunities exist to leverage activities across the enterprise in order to lower costs and strengthen overall awareness and likelihood of key risks.
6. Simplify Complex Processes – Rapid growth can result in processes built on a foundation of inefficient, overly manual, and redundant business practices. Reducing complexity requires collaboration across business functions and a willingness to break old habits. Smart investments in technology can also reduce manual costs through automation and control of key processes. For rapidly growing companies, process improvements should target areas with the strongest business cases for cash savings and risk reduction.
7. Make Decisions Faster – Companies face unnecessary risks and competitive disadvantage when they lack access to timely, accurate, and complete data. Good data and analysis are essential to meeting reporting obligations, forecasting and planning, budgeting, and managing limited resources. But data is often scattered across disparate systems and departments, leaving management with little time to piece together incomplete or inaccurate information. Fortunately, business intelligence (BI) and other decision support tools have become largely standardized, affordable, and easier to use. When these tools are combined with process and quality enhancements, companies can reduce risk and make faster, more informed decisions.
8. Invest for Growth – To be prepared for what lies ahead, growth-stage companies must make investments to strengthen and mature operations. Deciding where to invest, when to invest, and what to expect from specific investments is a critical management function. An investment roadmap that aligns organizational goals and strategies with anticipated requirements for people, process, and technology is invaluable, as is a collaborative budgeting and planning process. Project management discipline with emphasis on communication, setting clear goals, and establishing performance metrics will help ensure that investment-related projects stay on track and deliver the expected results.
9. Prepare for IPO – Participating in the public securities market is an exacting, highly regulated process that can drain even the most experienced finance and accounting resources. The IPO process typically requires months to complete, and many companies lack the systems and processes needed to support financial forecasting, budgeting, and reporting at the public company level. Accurate planning and resource deployment is critical to avoiding substantial delays, financial burdens, strategic disadvantages, and adverse legal consequences.
10. Achieve Audit Readiness and Reduce Close Cycle – For new public companies, preparing for a financial audit can be overwhelming, time-consuming, and distracting. Accounting teams are confronted with pressures to address new accounting rules and comply with SOX, all while trying to make the process run smoothly. With non-audit tasks competing for resources' time, it is inevitable that something will suffer. High-performing finance functions at companies at all stages are seeking efficient ways to prepare for audits and reduce close cycle times.
What Every Company Needs to Know Before Ringing the Bell
3 Strategies for Making KPIs Lead Complex Change and Boost Performance
The Future State Starts Now
How to Manage Growth Amid Complex Change
How to Manage People Risks During Integrations
Predictions for Regulatory & Technological Changes
Ensuring Loss of Resources Does Not Equal Loss of Knowledge
How to Embrace Change and Drive Value
Pros and Cons of Fixed-Price Contracts in Consulting
Submit a request for proposal.