Jason Hendren > Quotes

“Financial management takes on a new meaning when you enter a partnership with a private equity group. There are software systems marketed to investment firms to consolidate their financials among the companies they own. For them, it has many benefits. It simplifies financial reporting and management of their investments. For the operating companies, it may provide huge value if their current reporting systems are inadequate. However, if your company has a well-implemented modern system, this can be a burden. Imagine having someone come in and require that you abandon your cuttingedge integrated system and, instead, put your reports in their format. I have a friend who was a CFO with a modern ERP system who was required to integrate their company’s reporting with an antiquated Excel-based report generator because their new equity partners required their charts to look a certain way. It cost them time and money that could have been applied to building their company’s value elsewhere.”
― Jason Hendren, Things I Wish I Knew Before I Sold to Private Equity