Johan Goree explains how buyers should read accounts, test cash flow, challenge asset values, time due diligence, and use lenders to validate acquisition finance.
Listen to the EpisodeEpisode 198 | Runtime: 32:39 | Audio Episode
Hear the full conversation with Johan Goree on financial due diligence, cash flow, asset values, cloud accounting, lender checks, and structuring a smarter business acquisition.
Episode
198
Runtime
32:39
Topic
Acquisition due diligence
Format
Expert accountant interview
Three accounting focused lessons for buyers assessing a business before completion.
Profit can be adjusted through accounting treatment, but cash in the bank, debt, creditor pressure, and working capital show whether the business can fund operations and deferred consideration.
Cloud accounting, live bank reconciliation, and current management reports reduce diligence delays and give buyers a clearer view of trading performance before completion.
Stock, fixed assets, vehicles, equipment, and debtor books should be tested against realisable value, lender appetite, and whether those assets are essential to future profits.
In this episode, Jonathan Jay speaks with Johan Goree from On Point Accountants about the accountant's role in a business acquisition. Johan explains why buyers should start with the bank account, debt, creditors, stock, work in progress, and monthly cash flow before relying on the headline profit figure in the accounts.
The discussion covers the practical problems buyers face when vendors do not have current financial information. Johan makes the case for cloud accounting systems, live management reports, and better preparation from sellers who want maximum value. He also explains why the timing of financial due diligence matters, especially when lawyers, vendors, or acquirers slow the deal process.
Jonathan and Johan then move into asset values, finance, lender due diligence, subscription income, reliable first acquisitions, and using existing businesses to fund future deals. The conversation gives acquisition entrepreneurs a direct view of how an accountant thinks about risk, affordability, turnaround potential, and whether a deal should proceed.
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