Acquiring a ready-made business usually involves less risk than starting a business from scratch. Therefore, the amount to be invested must be higher, so as to compensate the entrepreneur who has managed to overcome the early stages of the startup. Even more, if the company you intend to acquire is very profitable and already has good cash flow, you should propose significant acquisition value to be able to close the deal. In case of the right kind of governance training the options will be the best now.
It is very important that the entrepreneur hires a consultancy specializing in Mergers and Acquisitions, which will help him throughout the acquisition process, mitigating risks, optimizing the values invested, and making the right decisions at each stage of the acquisition process.
It is essential to perform valuation and due diligence to know the company’s potential and key risks and to be able to negotiate with current owners in a rational and objective manner. It is very important to plan and execute the acquisition with the help of professionals with the appropriate experience in this complex subject.
- Corporate Governance, one of the terms of fashion in Business Management and that surely you must have heard at some point, right? But do you know exactly what Corporate Governance is and how your concepts and best practices can be helpful in leveraging your business results?
- Because they are best practices for running a business, Governance methods have become critical for assessing the risks and return on investment. This is one of the main reasons that have given a lot of evidence to the subject when it comes to efficiency and transparency in business management.
- In addition, companies that put Corporate Governance into practice are more valued and easier to raise funds. At the same time, by applying these resources well, they build a good reputation and consolidate themselves in the marketplace in an ongoing process of value creation.
- And while discussions on the topic began in the context of large publicly traded companies, they also play a role in closed societies, small and medium enterprises, and even state and third sector organizations.
In this post, you will understand a little more about this concept that emerged in the United States for some time has been gaining more and more force around the world, including this country, where the number of companies that are incorporating the practice into their Organizational Culture has been increasing each day. Without further ado, let’s understand how to start applying Corporate Governance concepts and best practices to your business today.
The role of the Board of Directors in Governance
The Board of Directors is the collegiate body in charge of the decision-making process of an organization regarding its strategic direction. He plays the role of guardian of the principles, values, social object and governance system of the organization, being its main component.
In addition to deciding the strategic directions of the business, it is incumbent upon the Board of Directors, according to the best interests of the organization, to monitor the board of directors, acting as a link between it and the partners.
The members of the Board of Directors are elected by the partners. As directors, directors have fiduciary duties to the organization and report to members at meetings. More broadly and periodically, they also report to partners and other stakeholders through periodic reports.