April 30, 2019 @ 11:16 by Steven Hugill
Business advisory firm Ryecroft Glenton is seeing increasing interest from clients in voluntary (non-statutory) audits as they prepare for acquisition, investment and finance raising.
In the past 12 months, the Newcastle-based firm’s audit and assurance division has seen a growth in demand for assurance services from business owners.
Not only do investors and lenders have greater confidence in businesses that have undergone an audit, but an additional benefit is that the audit process flags up deficiencies in structural and operational processes, which can then be addressed before they are highlighted as problems during financial due diligence.
A number of clients who have chosen to undergo voluntary audits have done so as a consequence of feedback received following a strategic review carried out by Ryecroft Glenton’s corporate finance division (RGCF).
Working closely with the firm’s audit and assurance division, RGCF plays an instrumental role in developing the strategic growth and potential value of businesses.
Ryecroft Glenton is also seeing an increase in instructions from third-party lenders and institutional investors for the firm’s financial due diligence service, which focuses on the bespoke requirements of each transaction.
Early engagement of Ryecroft Glenton’s audit and assurance advisory services following a strategic review allows a business sufficient time to implement systems and recruit new and additional key personnel where necessary to maximise business potential and enhance value.
Grahame Maughan, Ryecroft Glenton partner and head of audit and assurance, said: “The North East has a strong and diverse group of innovative SME businesses that are attracting interest from investors and acquirers.
“These businesses are either gearing up for growth or recognise that a trade sale is a positive opportunity to secure the future of their business and its workforce if they are planning an exit.
“The growth in non-statutory audits is a good indicator of this trend.
“We are seeing SMEs voluntarily adopting an audit as part of their strategy for readying themselves for sale, inward investment and finance raising.
“This should also mean that financial due diligence undertaken at the point of transaction doesn’t produce any unpleasant surprises.”