Budgeting is one of the major financial data activity that involves allocation of finite resources to meet the needs of an organization. For this case budgeting will give the company the legal authority to go with the process of acquisition. Following the decision to acquire and consolidate into one accounting and leadership team, the firm needs to have a strategic plan for that will make the acquisition a success. As the CFO, I would give directives for getting ready for budgeting, considerations for firm composition, and choosing budgeting methodologies.
All departments should get ready for budgeting. The overall foundation of the success of the forthcoming acquisition is dependent on a strategic plan whose sales and marketing plans are the major components. As such each department should prepare its sales and marketing plans information because both are important for the company’s revenue goals. Furthermore, it is important to get prepared for budgeting to ensure that the business acquisition plans is in alignment with the overall business plan. One of the ways of getting prepared across is engaging leaders across all departments to have conceptual details before the development of figures.
Delegate your assignment to our experts and they will do the rest.
Another directive to be made regards considerations of the structure of the business. This is because it will have ramifications on the business acquisition budgeting process. Depending, on the type of firm, departments may come up with an overall plan or budget or either develop multiple plans for the acquisition process. Departments will be required to have business acquisition plans with specific goals, objectives, and tactics as the foundation of good budgeting process.
Finally, I would give a directive for the choice of budgeting methodology. There are a number of ways to approach a budget for acquisition. These include the projection method, the percentage method, goal-based method, and ratio method. The department of finance should access the types of financial records it keeps, particular initiatives, and the degree of accountability required. Based on such considerations, the company will choose the best method and begin with actual budgeting for acquisition.
