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Our Methodology - Finance & Administration
An illustration of questions an Axiomate business assessment will answer on your behalf.

Current Financial Condition
What is the true operational cash flow? Are there any foreseeable changes? Are there seasonal trends?
Are receivable turns appropriate?
What are the root causes of slow pays? Do slow pays suggest product, service or sales issues? Are slow pays also on the sales forecast?
What off balance sheet financing exists? What are the unstated liabilities?
Are accounts routinely reviewed, or will there be significant year-end accruals or accounting adjustments?
Are there significant slow-moving items in inventory?
Have there been recent changes in the sales mix?
Information Systems
Are information systems adequate for the existing business?
Is the information system pro-active or re-active to growth? Where are the stress points in the system as the business grows?
Do system back-ups routinely occur? Are they tested?
Are system recovery practiced and tested? Frequency?
Is there a written computer policy?
Is the target compliant with software licensing?
Key Business Relationships
Are there reviews for changes in volumes of business between company and vendors, customers?
Are there risk management practices with vendors and customers?
What is the relationship with key lenders?
What are danger points on covenant compliance?
Are bank reports timely and accurate?
Are bills being paid on a reasonable basis?
Owner Motivations
How are owners compensated?
What are owner take-outs and perks other than salary?
What is near and long-term equity plan philosophy of company? Is management acting consistent with stated philosophy?
Is individual compensation aligned with objectives of the business?
Why do owners want to sell? What are their cost verses equity motives?
Risk Management
Is insurance coverage methodically reviewed? Does coverage make sense for current and anticipated future of business?
What types of implied commitments and exposures exist within sales agreements and employment agreements?
Is there a clear and comprehensive human resources policy? Are there exposure areas?
Are there any pending or potential legal issues? Have there been any potential or actual legal issues in the last 3 years of business?
Are we current and compliant in our taxes?

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