Are you looking to attract investors? Are you getting your company in the best possible shape ready to sell? One of the key magnets attracting private equity these days is cloud ERP.
By Lucy Thorpe
Small – medium sized businesses wanting to attract buyers or investors have something to prove – they need to show that they are a good proposition. The potential buyers want to see that you mean business. One of the best ways to do this is with business software which simplifies the process of accessing your company information.
Private equity owners or fund manager wanting to invest in or buy a company are looking for fast growth and high profitability. For this reason they like to see a business which already has cloud ERP because it saves them the time and effort of introducing it themselves.
So if you’ve got big plans for the future and you are hoping to attract the cash here are 4 good reasons why you should invest in Cloud ERP
Scale for Growth
Investors are going to be impressed by any organisation that is already set up to scale quickly. It saves them time and money when the main focus is aggressive growth. Inefficient systems can have a direct impact on profitability and momentum.
Simplicity is Key
Cloud ERP is a distant cry from the complexity and high levels of customisation you get with traditional ERP – the type which sits on servers on your business premises. Cloud ERP based on access via the internet is far cheaper to install and run – both of which investors like.
Automate where possible
Automation of repetitive tasks and processes is highly desirable because it saves time and frees up staff. This might mean you can do without them or that they are able to add value elsewhere.
Real time Reports
Real time reports and analytics make it easy to access the numbers. You can slice and dice them any way you want as well as drilling down to a very granular level. What’s more, credible reporting makes it much easier to keep track of key performance indicators to measure value and predict cash flows.
You don’t have to be courting a sale – many public and private companies acquiring other companies with the intention of integrating them profitably, can take these lesson on board.
Behind most successful companies these days you will find a modern cloud ERP system helping to achieve faster growth and higher returns. Like you – many Private Equity companies know that they can sell a company for higher returns when it comes equipped with effective ERP.
With ERP installed each element of the business is linked together and information flows across traditional departmental silos. Now there is really nothing left to hold you back.
Lucy Thorpe is a former BBC journalist and is now chief content creator at In Cloud Solutions, a UK software company working with SAP solutions. They provide ERP for fast growing small and medium sized companies across multiple sectors including financial and professional services, manufacturing, wholesale and distribution and life sciences. For more on how to pick cloud ERP you can contact In Cloud Solutions