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The FP&A Playbook for PE Exits to Align Forecasts, Systems, and Strategy with Deepak Hooda
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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
FOLLOW OUR GUEST DEEPAK HOODA ON:
LinkedIn: https://www.linkedin.com/in/deepakhooda/?originalSubdomain=uk
FOLLOW OUR HOST TEJAS PARIKH ON:
LinkedIn: https://www.linkedin.com/in/tejasparikh/
Website: https://aksharconsulting.co.uk/
FOLLOW FP&A UNBOXED PODCAST ON:
Website: https://aksharconsulting.com/
LinkedIn: https://www.linkedin.com/company/aksharconsultingltd/
Instagram: https://www.instagram.com/aksharbusinessconsulting
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