Data analytics when fundraising or exiting a business

Data is a source of untapped potential within a business, and most organisations are either unaware of it or only just starting to touch on the capabilities that are possible utilising it.

When considering fundraising or exiting a business, data can have a big impact on investor confidence, due diligence, and valuations.

So how can data analytics be used when fundraising or exiting?

Improved reporting

Data analytics can result in improved reporting which will provide insights that can help to define and direct future business direction. It can aid with benchmarking to compare your business vs those in the same industry or area which can then pinpoint where the focus needs to be in the future periods, this can then form part of the business plan. 

Business plans

Business plans are essential and they need to be underpinned by data to support them. This will aid with buy-in and improve valuations. Business plans also need to be supported by finance models, and data can help justify the assumptions made.

Turning business plans into actionable and measurable tasks

Agreed business plans need translating into actionable tasks that can be measured and tracked.

The information can likely be found within different platforms, but it is important to make sure it is all consolidated into one easy-to-access solution.

This is not always a straightforward task. Data analytics can be used to extract data from different systems, then consolidate and transform it into reporting that is easy to understand. Data sets and insights can then be used to measure the progress of tasks and goals.

Quantifying risk and protecting value

Perceived risk can dissuade potential buyers/investors resulting in valuations decreasing. Using comprehensive data sets and data analytics that buyers/investors can interact with can help quantify risk and help protect the value. Without trusted data throughout the different business areas there is a risk of areas being undervalued. 

Focusing on key, strategic goals

Providing management teams with insightful, trustworthy data that is easy to obtain is essential to allow teams to focus on key goals and strategy which can enable growth and ultimately increase valuations.

Why is data analytics so important?

Business data analytics can help you make sense of the enormous amount of raw information that gets collected by a business. It helps you recognise trends, understand your audience, optimise performance and profitability, and plan for the future. Ultimately, data analytics enables you to make better business decisions.