If you’re a controller or finance leader, you’ve likely felt the pressure to modernize your organization’s financial processes. Legacy systems, fragmented data, and manual workflows are holding you back from delivering the strategic insights your business needs. The solution? A comprehensive finance transformation strategy that puts your controllership function at the center of meaningful change. 

The reality is that successful finance transformation isn’t just about implementing new technology—it’s about reimagining how your finance function creates value for the entire organization. When done right, transformation elevates controllership from transaction processing to strategic business partnership. 

Why controllership should lead finance transformation 

Your role as a controller positions you uniquely to drive transformation success. You have deep knowledge of current business processes, established relationships across the organization, and ownership of critical compliance requirements. These advantages make controllership the natural champion for finance transformation initiatives. 

Consider this scenario: A multinational organization’s newly appointed chief accounting officer inherited a patchwork of disconnected systems from multiple acquisitions. Rather than accepting the status quo, they recognized an opportunity to create globally integrated processes built on a common data model. What started as an accounting system upgrade evolved into a comprehensive finance transformation that engaged the entire CFO organization. 

This isn’t an isolated example. We consistently see that the most successful finance transformation programs benefit from strong controllership leadership because of the function’s: 

• Comprehensive understanding of business processes, data flows, and system requirements 
• Trusted relationships across departments and business units 
• Direct accountability for accounting, statutory, and regulatory compliance 

Building your transformation strategy framework 

Your transformation strategy must begin with a clear vision for the future of your controllership function. This vision should articulate how you’ll deliver enhanced value to stakeholders through real-time data, analytical insights, and automated processes that increase efficiency and agility. 

A winning vision typically focuses on three key areas: 

• Capability development: Building new skills or strengthening existing organizational capabilities 
• Service delivery optimization: Leading processes and applying automation to improve efficiency
• Value creation: Shifting from transaction processing to strategic business partnership 

7 critical components of your strategy 

Your transformation strategy should include sufficient detail to guide decisions on priorities, investments, and resources. The most effective strategies address these essential elements: 

1. Vision and outcomes: How will your controllership function deliver measurable value to stakeholders? Your vision should clearly define success metrics and expected benefits. 

2. Process redesign: What work needs to be accomplished in the future state, and how will that work be executed? This includes identifying opportunities for automation and process optimization. 

3. Data transformation: How can you convert accounting and financial data from an operational barrier into a strategic organizational asset? Consider data quality, accessibility, and analytical capabilities. 

4. Talent strategy: What does future controllership work look like, and what skills will your team need? This includes both technical capabilities and strategic thinking skills. 

5. Resource planning: How will you staff and govern the transformation, including potential third-party partnerships? Consider both transformation team needs and ongoing operational requirements. 

6. Technology architecture: What platforms will enable your vision, and how do they integrate with existing systems? Focus on scalability, flexibility, and user experience. 

7. Implementation roadmap: How will you sequence milestones while considering accounting cycles, reporting deadlines, and business continuity requirements? 

Overcoming common transformation challenges 

Challenge 1: Lack of clear vision 

Starting your transformation journey without a fully formed north star vision often leads to suboptimal outcomes. This typically happens when change is driven by IT mandates or system migrations rather than business strategy. The result? Significant technology investments that simply recreate current-state processes in new systems. 

Solution: Invest time upfront to define your transformation vision and expected outcomes. Engage stakeholders across the organization to understand their needs and build buy-in for your strategy. 

Challenge 2: Late controllership engagement 

When controllership isn’t involved early in transformation planning, critical requirements get overlooked, leading to expensive customizations and delayed implementations. 

Solution: Position yourself as the transformation champion from day one. Use your process knowledge and stakeholder relationships to shape the program direction. 

Challenge 3: Over-customization 

The temptation to customize technology solutions to match legacy processes can derail transformation benefits and increase ongoing maintenance costs. 

Solution: Challenge existing processes and embrace standard functionality where possible. Use transformation as an opportunity to eliminate inefficient workarounds. 

Challenge 4: Decision paralysis 

Transformation programs require rapid decision-making, but many organizations struggle to make choices at the required pace. 

Solution: Establish clear governance structures with defined decision rights. Create escalation paths for issues that require senior leadership input. 

The talent imperative in finance transformation 

People are often the most critical component of transformation success. You’ll need to pull top talent from their current roles to lead transformation full-time. These leaders should be visionary, technology-savvy, and credible enough to evangelize change across the organization. 

Key talent considerations include: 

Organizational design 

What delivery model and structure best support your north star vision? Can improved technology enable centralization opportunities like shared service centers or centers of excellence? 

Skill development 

What capabilities need to be developed or acquired? Focus particularly on shifting from transactional accounting to analytics, data management, automation, and business insights. 

Change management 

How will you engage, communicate with, train, and build support for transformation within your global controllership function? Effective change management often determines transformation success or failure. 

Diversity and inclusion 

How can transformation accelerate progress on your controllership function’s diversity, equity, and inclusion goals? Use this opportunity to reassess role requirements and career development paths. 

Moving forward with your transformation strategy 

Finance transformation represents a significant opportunity to elevate your controllership function’s strategic impact. By taking ownership of the transformation strategy and leveraging your unique position within the organization, you can drive meaningful change that benefits not just finance, but the entire business. 

Remember that transformation is a journey, not a destination. Your strategy should be flexible enough to evolve as business needs change while maintaining focus on your core vision and objectives. 

The most successful transformations happen when controllership leaders step up as champions of change, bringing together business acumen, process knowledge, and strategic thinking to create lasting value for their organizations. 

Ready to transform your finance function? BPM’s experienced team can help you develop and execute a finance transformation strategy tailored to your organization’s unique needs.  

“Finance transformation touches every aspect of your organization—processes, technology, and people. Getting an outside perspective brings industry best practices and an objective view that’s not tied to existing systems or internal politics. You need someone who can look across all these dimensions holistically and see what you might be missing from the inside.” – Thomas White, Finance Transformation Leader   

Contact us today to discuss how we can support your journey toward a more strategic, efficient, and impactful controllership function. 

Finance teams face mounting pressure to do more than just compile data and report on what happened. The modern finance function must transform from backward-looking information providers into forward-thinking strategic partners who drive business decisions and create value. 

A well-designed finance transformation roadmap is essential to successfully evolve your finance team from information processors to business impact drivers. Let’s explore how to create and implement an effective roadmap that aligns with your organization’s strategic goals. 

Understanding the finance transformation journey 

Finance transformation isn’t a single project — it’s a multi-phase journey that fundamentally changes how your finance function operates and provides ongoing value to the organization. 

Think of finance transformation as a strategic initiative that requires breaking down larger goals into manageable components. We’ve found this journey typically progresses through four key phases: 

1. Strategize – Building a solid foundation by assessing your current state and developing a future-state vision 

2. Plan – Creating an executable roadmap with a business case and resource allocation 

3. Build – Executing the transformation through program management and change management 

4. Run – Transitioning to continuous improvement in your new operating model 

The evolution from information to impact 

The finance function encompasses four fundamental activities that create increasing levels of value: 

• Information: Cleaning, compiling, and assembling relevant data 
• Insight: Analyzing information and relating it to objectives 
• Influence: Becoming a strategic partner to influence decisions 
• Impact: Providing strategic leadership to guide the organization forward 

Most finance teams find themselves trapped in information and insight activities when they’d prefer to focus on influence and impact. A successful transformation helps teams make this crucial shift. 

6 steps to build your finance transformation roadmap 

Creating a comprehensive roadmap gives your transformation effort direction and purpose. Here are six essential steps to develop an effective finance transformation roadmap: 

1. Assess your current state and define your vision 

Start by taking an honest look at where your finance function stands today. This assessment should include: 

• Reviewing your existing processes and identifying pain points 
• Talking to stakeholders across the organization about their finance needs 
• Benchmarking against industry standards and leading practices 
• Developing a clear vision of your future finance operating model 

This assessment phase is the foundation for everything that follows. We’ve observed across numerous client engagements that taking time upfront pays significant dividends later in the process. 

A comprehensive assessment helps you: 

• Reexamine existing strategy or define a new one 
• Identify technology gaps and skillset requirements
• Gain buy-in at all levels to foster the necessary mindset shift 
• Create short and mid-term objectives based on your vision 

2. Evaluate technology systems and solutions 

Technology is the engine that powers finance transformation. Look beyond simply automating existing processes and consider how technology can fundamentally change how your team operates. 

Modern finance functions leverage: 

• Robotic Process Automation (RPA) to streamline repetitive tasks at the information level 
• Machine learning to augment capabilities at the insight level 
• Predictive analytics to enable strategic planning at the influence level 

When evaluating technology, consider: 

• How well potential solutions align with your business goals 
• Integration capabilities with existing systems 
• Total cost of ownership and expected ROI 
• User experience and adoption requirements 

3. Redesign processes with governance in mind 

As you transform, document new processes and consider governance requirements upfront. This includes: 

• Aligning new implementations with relevant laws and regulations 
• Documenting new processes thoroughly for training and audit purposes
• Building controls directly into your processes 
• Implementing a process ownership model to maintain consistency 

4. Prioritize data security and integrity 

With increased automation and digital processes comes greater responsibility for data security. Your roadmap should address: 

• Conducting cybersecurity risk assessments 
• Implementing appropriate security measures
• Establishing data governance policies 
• Creating protocols for responding to potential breaches 

5. Develop a change management strategy 

Even the best-designed transformation will fail without proper change management. Your roadmap should include plans for: 

• Communicating the vision and benefits to all stakeholders 
• Providing comprehensive training for new systems and processes 
• Identifying and supporting change champions across the organization 
• Measuring and celebrating early wins to build momentum 

6. Plan for continuous improvement 

Your transformation doesn’t end at implementation. Include measures in your roadmap for: 

• Testing new configurations before full deployment 
• Monitoring performance against established KPIs 
• Gathering feedback from users and stakeholders 
• Regularly reassessing and optimizing your new processes and systems 

Building the right team for transformation success 

Finance transformation requires a diverse set of skills. Consider assembling a core team with specialties in: 

• Finance operations and strategy 
• Process design and optimization
• Technology implementation and integration
• Change management and communication 
• Project management 

In our experience, transformation success depends on quality rather than quantity when it comes to team composition. A small team of high performers with cross-functional knowledge can often accomplish more than a larger team of specialists. 

Upskilling for the future of finance 

As technology automates routine tasks, finance professionals need new skills to deliver strategic value. Focus on developing three key skill areas: 

Technical skills 

• Data analysis and interpretation 
• Digital literacy and technology proficiency 
• Process design and improvement 

Business skills 

• Strategic thinking and business partnering 
• Decision support and scenario planning 
• Performance management 

People skills 

• Storytelling and communication 
• Change leadership 
• Collaboration across functions 

Most importantly, foster a growth mindset within your team. The motivation to embrace change has been identified as the most critical factor for successful finance transformation. 

Common pitfalls to avoid 

As you embark on your finance transformation journey, be aware of these common pitfalls: 

• Starting with technology rather than strategy – Technology should enable your strategy, not define it 
• Tailoring platforms to fit current processes – This prevents you from adopting leading practices 
• Failing to gain executive sponsorship – Transformation requires top-down support 
• Underestimating the importance of change management – People issues, not technical issues, derail most transformations 
• Trying to do too much at once – Break your transformation into manageable phases 

Ready to start your finance transformation journey? 

At BPM, we help organizations navigate the complex process of finance transformation. Our team can support you in assessing your current state, developing a clear vision, and creating a roadmap tailored to your organization’s unique needs. 

“Building a finance function that can scale with your growth requires orchestrated changes across people, process, and technology. When you bring in professional support for that transformation, it frees up your leadership bandwidth to focus on what you do best – growing the business. And as you scale and look to attract investors, they want to see a finance operation that’s ready to handle their capital efficiently, not one that’s still figuring out basic reporting.” – Thomas White, Finance Transformation Leader   

We understand that each organization’s transformation journey is different. That’s why we take the time to understand your specific challenges and goals before recommending a path forward. 

Contact us today to discuss how we can help you transform your finance function from a data processor to a strategic business partner driving growth and value for your organization. 

New IRS regulations expand executive compensation deduction limits 

The IRS has proposed significant new regulations that will expand the reach of Section 162(m)’s executive compensation deduction limitations starting in 2027. If your publicly held corporation hasn’t started planning for these changes, now is the time to act. 

On January 14, 2025, the IRS released proposed regulations (REG-118988-22) implementing amendments made by the American Rescue Plan Act of 2021 (ARPA) to Section 162(m). These changes will substantially increase the number of employees whose compensation above $1 million becomes non-deductible for tax purposes. 

Understanding the current landscape 

Section 162(m) has been limiting public companies’ tax deductions since 1993, but its scope has expanded significantly over time. Currently, the law disallows deductions for compensation exceeding $1 million paid to “covered employees” during the taxable year. 

The Tax Cuts and Jobs Act of 2017 introduced the “once covered, always covered” rule, meaning that anyone who was identified as a covered employee in 2017 or later remains a covered employee forever, even if they no longer hold their original position. This has already caused the number of covered employees at many companies to grow steadily over time. 

Who are covered employees today? 

Under current rules, covered employees include: 

• Chief executive officer (CEO) 
• Chief financial officer (CFO) 
• The three highest paid executive officers (other than the CEO and CFO) 
• Anyone who was previously identified as a covered employee since January 1, 2017 

The ARPA expansion: Five additional employees 

Starting with tax years beginning after December 31, 2026, ARPA adds a new category to the covered employee definition: the five highest compensated employees for each taxable year. 

This expansion represents a significant broadening of Section 162(m)’s reach, potentially affecting mid-level executives and high-earning employees who were previously outside the law’s scope. 

Key differences in the new category 

The proposed regulations clarify several important distinctions about these additional five employees: 

• Annual determination: Unlike the “once covered, always covered” rule that applies to traditional covered employees, the five highest compensated employees are determined fresh each year. An employee who qualifies one year doesn’t automatically remain a covered employee in subsequent years unless they continue to rank among the top five. 
• Broader definition of “employee”: The regulations define “employee” under Section 3401(c), which includes both common law employees and corporate officers. This means the five additional spots aren’t limited to executive officers—they can include any highly compensated employee. 
• Different compensation measurement: For identifying the five highest compensated employees, companies will use compensation that would be deductible for the tax year (generally Form W-2 box 1 wages). This differs from the current approach for identifying the three highest paid officers, which uses total compensation disclosed under Securities and Exchange Commission rules. 

Navigating affiliated group complexities 

The proposed regulations extend existing affiliated group rules to the new five highest compensated employee category. These rules prevent companies from circumventing the law’s intent by shifting highly paid employees to related entities. 

Single publicly held corporation in group 

If your affiliated group has one publicly held corporation, any employee of any group member can qualify as one of the five highest compensated employees, regardless of which entity employs them or pays their compensation. 

Multiple publicly held corporations 

When an affiliated group includes multiple public corporations, each determines its own set of five highest compensated employees separately. The regulations provide specific guidance on which group members each public corporation should consider in making these determinations. 

Planning considerations for your organization 

These changes will have meaningful implications for tax planning, financial reporting, and compensation design. Consider these key areas: 

Immediate assessment needs 

• Identify potential new covered employees: Review your current compensation structure to determine which employees might fall into the new five highest compensated category 
• Evaluate deferred tax positions: Existing deferred tax assets related to employee compensation may need adjustment, potentially affecting interim financial statements 
• Review compensation arrangements: Analyze current and planned compensation structures for employees who may become covered employees 

Strategic planning opportunities 

• Compensation restructuring: Consider whether modifications to compensation arrangements could minimize the impact of the new rules 
• Timing considerations: Evaluate whether accelerating or deferring certain compensation payments before the 2027 effective date makes sense
• Documentation review: Assess existing employment agreements and compensation plans for potential modifications 

Implementation timeline and next steps with BPM 

The proposed regulations generally apply to compensation that is otherwise deductible for tax years beginning after the later of December 31, 2026, or the date final regulations are published. 

Moving forward with confidence 

The expansion of Section 162(m) represents a significant change in the tax treatment of executive compensation. While the rules don’t take effect until 2027, the time to start planning is now. 

Understanding these new requirements and their potential impact on your organization will help you make informed decisions about compensation planning and tax strategy. Early preparation can help minimize surprises and position your company to adapt effectively to the new regulatory environment. 

Ready to assess how these changes might affect your organization? Contact BPM’s tax professionals to discuss your specific situation and develop a strategic approach to the new Section 162(m) requirements. Our team can help you navigate these complex regulations and identify planning opportunities tailored to your company’s needs. 

Construction companies face unique financial management challenges that require specialized accounting approaches. Unlike standard accounting practices, construction accounting must address project-based operations, decentralized production, fluctuating costs, and complex revenue recognition methods.  

At BPM, we understand these industry-specific needs and can help you implement effective accounting systems to keep your projects profitable and your business thriving. 

What makes construction accounting different? 

Construction accounting differs significantly from standard accounting practices in several important ways: 

• Project-based operations: Each construction project functions as its own temporary profit center, requiring detailed tracking and allocation of costs and revenue for every job, or job phase. 
• Decentralized production: With work occurring across multiple job sites rather than in fixed locations, accounting must track mobile workforces and equipment. 
• Long-term contracts: Projects often span multiple accounting periods, requiring specialized billing and revenue recognition methods. 
• Fluctuating costs: Material and labor costs can change significantly during a project’s lifetime, making cost management challenging. 
• Change orders: Projects frequently evolve through change orders, which must be properly documented and priced to maintain profitability. 

Understanding these differences is key to maintaining accurate financial records and making informed business decisions. 

Essential construction accounting concepts 

Job costing 

At the heart of construction accounting is job costing—the process of tracking all expenses associated with each project. Accurate job costing helps you estimate future projects, monitor ongoing work, and analyze completed jobs for profitability. 

Key components of job costing include: 

• Labor costs (including wages, benefits, and taxes) 
• Material costs (including delivery and storage) 
• Equipment costs (purchases, rentals, maintenance)
• Subcontractor expenses 
• Overhead allocation 
• Change orders 

Modern construction ERP software can streamline this process, allowing you to track costs in real-time and take corrective action when projects exceed budgeted amounts. 

Revenue recognition methods 

Construction companies typically use one of several methods to recognize revenue: 

• Cash basis method: Revenue is recorded when payment is received, and expenses are recorded when paid. While simple, this method is generally only suitable for smaller contractors with average gross receipts under $25 million. 
• Percentage of completion method (PCM): Revenue is recognized based on the percentage of work completed during each accounting period. This method provides a more accurate view of a company’s financial position for long-term projects and is required for larger contractors working on projects lasting more than two years. 
• Completed contract method (CCM): All revenue and expenses are recognized only when the project is finished. While this can defer tax liability, it’s generally limited to home construction projects and isn’t GAAP-compliant. 

Contract retainage 

Retainage is the portion of the contract price (typically 5-10%) withheld until project completion to promote satisfactory work. Since this can represent a significant portion of your profit, tracking retainage properly is crucial for cash flow management and financial planning. 

3 financial statements specific to construction 

Construction companies rely on specialized financial reports that address industry-specific needs: 

Work-in-progress (WIP) schedule 

The WIP schedule provides a snapshot of all ongoing projects, showing: 

• Contract amounts 
• Costs incurred to date
• Estimated costs to complete 
• Billings to date 
• Estimated gross profit 

This crucial document helps identify potential cost overruns early and serves as an early warning system for project profitability issues. 

Job cost reports 

These detailed reports track actual costs against estimated costs for each project, breaking down expenses by category (labor, materials, subcontractors, etc.). Regular review of these reports helps catch budget variances before they become serious problems. 

Construction-in-progress (CIP) report 

The CIP report tracks the financial status of uncompleted projects, including costs incurred and recognized revenue based on your chosen revenue recognition method. 

Construction accounting best practices 

To maximize the effectiveness of your construction accounting system: 

1. Focus on accurate job costing: Make job costing a priority across your organization, with clear coding systems for each job and cost category. 

2. Choose the right revenue recognition method: Select the method that best fits your business size and project types, considering both financial reporting and tax implications. 

3. Implement proper change order management: Document, price, and approve all change orders before beginning work to maintain project profitability. 

4. Review contracts carefully: Avoid accepting unreasonable contract terms that could lead to disputes or financial losses. 

5. Invest in construction-specific accounting software: Choose a solution that is trusted by the AICPA and CFMA, and is designed for the unique needs of construction businesses. 

Choosing the right construction ERP software 

Selecting the right construction ERP software is essential for managing these specialized accounting needs. When evaluating solutions, look for: 

Project management capabilities 

Your construction ERP should offer robust tools for: 

• Real-time data and analytics 
• Work-in-progress reporting 
• Resource allocation 
• Inventory management 
• Progress tracking 
• Task scheduling 

These features help you keep projects on budget and on schedule. 

Accounting and financial management tools 

Construction accounting comes with unique complexities—staggered payment schedules, multiple funding sources, and project-specific budgets, to name a few. That’s why your ERP system should deliver real-time visibility across all entities, helping you track budgets, flag risks early, and stay in control. 

To truly support growth, your system also needs to scale with you—leveraging modern, human-centric technologies like agentic AI to automate both routine tasks and advanced analytics. 

Mobile accessibility 

With workers in the field and on the move, mobile access to project data is essential. Look for solutions that allow team members to access information and collaborate from anywhere, at any time. 

Why Sage Intacct excels for construction accounting 

Among the many construction ERP options available, Sage Intacct for Construction stands out as a particularly strong solution. With over twenty years of industry experience and the largest market share of construction ERP systems, Sage Intacct is the preferred accounting solution of the AICPA and Sage has as a trusted partnership with the Construction Financial Management Association (CFMA). Sage Intacct offers several advantages: 

• Cloud-native approach: Access your financial information anytime, anywhere, without complex upgrades or maintenance. 
• Powerful integrations: Seamlessly connect with over 200 applications commonly used in construction, including Procore and Autodesk Navisworks. Sage also has a full construction suite of their own integrated solutions for extended capabilities to manage field services, estimating, construction management, construction payroll, real estate development, and AP automation.  
• Scalability: As your business grows by adding regional offices or new divisions, Sage Intacct grows with you, offering centralized management of multiple entities. 
• Robust project management: From document management to change order tracking, Sage Intacct provides the tools you need to manage complex projects effectively. 
• Automated project billing: Improve cash flow with automated invoicing based on project milestones or specific billing terms. 

Partner with BPM for your construction accounting needs 

With 20 years of experience working with contractors, subcontractors, developers, and builders, BPM’s Construction team understands the unique challenges your business faces. Our professionals can help you implement effective accounting systems, optimize your processes, and make informed financial decisions. 

We’re committed to delivering customized solutions focused on your specific business requirements, whether you need help with advisory services, tax planning, accounting systems, or assurance needs. 

Ready to take your construction accounting to the next level? Contact BPM today to discuss how we can help streamline your financial management and position your business for scalable growth. 

Finance teams face mounting pressure to do more with less while simultaneously providing deeper strategic insights. If your organization is still relying on manual processes and disconnected systems, you’re likely experiencing the frustration of data silos, time-consuming reconciliations, and limited reporting capabilities that hinder rather than help your business decisions. 

Finance transformation offers a pathway to elevate your finance function from a reactive reporting center to a proactive strategic partner within your organization. Let’s explore how this approach can revolutionize your financial operations and help create meaningful business outcomes. 

“Finance has traditionally been viewed as a cost center—a necessary function for managing transactions and ensuring compliance. Through finance transformation, we’re changing that dynamic entirely, evolving finance into the source of strategic insights that drive real business change. That shift from cost center to value creator is what delivers the true return on finance transformation.” – Thomas White, Finance Transformation Leader 

What finance transformation means for your business 

Finance transformation represents a comprehensive strategic overhaul of your financial processes, systems, and operations. It’s not merely about implementing new technology—it’s about reimagining how your finance team operates to better support your broader business objectives. 

This transformation encompasses several key elements: 

• Strategic realignment of finance with company-wide goals 
• Process reengineering to reduce inefficiencies 
• Technology implementation to automate manual tasks 
• Organizational change management and talent development
• Data integration for improved analytics and decision-making 

The goal is to create a more agile, efficient finance function that provides greater value while reducing operational costs and risks. 

Why finance transformation matters now more than ever 

With a marketplace defined by constant change and disruption, a conventional finance model simply can’t keep pace. Consider these reasons to prioritize finance transformation: 

Maintaining competitive advantage 

Your competitors are likely already modernizing their finance functions. Those who successfully transform gain the ability to make faster, more informed decisions based on real-time data and predictive analytics. 

Meeting evolving stakeholder expectations 

Investors, board members, and executives increasingly expect finance to provide forward-looking insights rather than just historical reporting. Finance transformation equips your team to meet these elevated expectations. 

Navigating economic uncertainty 

Economic volatility requires finance teams to model scenarios quickly and pivot strategies as conditions change. Transformed finance functions can respond with agility to market shifts and emerging opportunities. 

Addressing talent challenges 

Top finance professionals seek roles where they can add strategic value rather than spending their days on manual data entry and reconciliations. Transformation helps attract and retain high-caliber talent. 

The journey to finance transformation 

Finance transformation typically unfolds across three distinct phases: 

Phase 1: The reactive state 

Many organizations begin their journey here, characterized by: 

• Manual, spreadsheet-driven processes 
• Siloed data across multiple systems 
• Backward-looking reporting focused on compliance 
• Limited capacity for analysis due to time-consuming transactional work 

If this describes your current state, you’re not alone. But staying here puts your organization at a disadvantage. 

Phase 2: The proactive transition 

In this intermediate phase, finance teams begin implementing: 

• Standardized processes across functions 
• Automation of routine transactions 
• Integrated financial and operational data 
• More frequent forecasting and scenario planning
• Improved governance and controls 

This phase delivers notable efficiency gains while building capabilities for the next level. 

Phase 3: The optimized function 

The fully transformed finance function features: 

• End-to-end process automation 
• Real-time analytics and reporting
• Predictive modeling capabilities 
• Finance business partners embedded in operational teams 
• Strategic insights driving business decisions 

At this stage, finance becomes a true value creator for the organization, influencing strategy and identifying new growth opportunities. 

Key benefits of finance transformation 

A well-executed finance transformation yields numerous advantages: 

Operational improvements 

• Reduced processing times for key finance activities like month-end close 
• Lower error rates through automation and standardization 
• Decreased costs through elimination of redundant processes 
• Greater scalability to support business growth 

Enhanced decision support 

• Real-time visibility into financial performance 
• Data-driven insights across business dimensions 
• More accurate forecasting and planning 
• Scenario modeling to evaluate strategic options 

Risk and compliance benefits 

• Stronger internal controls and audit trails 
• Improved data quality and governance 
• More efficient regulatory reporting 
• Better visibility into potential risks 

Strategic advantages 

• Finance team members freed from transactional work to focus on value-added analysis 
• Closer partnership between finance and operations 
• More agile response to market changes 
• Enhanced ability to evaluate investment opportunities 

Creating your finance transformation roadmap 

A successful transformation requires thoughtful planning: 

1. Assess your current state: Document existing processes, systems, and pain points 

2. Define your future vision: Determine what capabilities your finance function needs to deliver 

3. Identify gaps: Analyze the differences between current and desired states 

4. Prioritize initiatives: Focus on changes that will deliver the greatest strategic value 

5. Develop a phased implementation plan: Create a realistic timeline with clear milestones 

6. Establish success metrics: Define how you’ll measure progress and outcomes 

Remember that transformation is a journey, not an overnight change. The most successful programs deliver incremental improvements while working toward longer-term goals. 

How BPM can help guide your finance transformation 

At BPM, we partner with organizations across industries to navigate finance transformation successfully. Our approach is tailored to your specific needs and challenges, combining technical knowledge with practical implementation experience. 

We can help you: 

• Assess your current finance function against leading practices 
• Develop a transformation strategy aligned with your business goals
• Select and implement appropriate technology solutions 
• Redesign processes for maximum efficiency and control 
• Manage change and develop your team’s capabilities 
• Measure and optimize results 

Our team brings deep experience in finance operations, technology implementation, and change management — all essential elements for successful transformation. 

Taking the next step 

Finance transformation represents a significant opportunity to elevate your finance function’s contribution to organizational success. By embracing modern technologies, streamlining processes, and developing your team’s capabilities, you can create a finance operation that truly drives strategic value. 

Ready to explore how finance transformation could benefit your organization? Contact BPM today to discuss your challenges and objectives. Our team can help you develop a pragmatic approach tailored to your specific needs and guide you through each step of your transformation journey. 

Unable to pay your business taxes? You’re not alone. Many successful businesses face this challenge, especially during economic downturns or periods of rapid growth. What sets these businesses apart is how they handle the situation – taking action early and understanding all available options is key to protecting your company’s future. 

Immediate Steps to Take 

When you realize you can’t pay your business taxes, time becomes your most valuable asset. The actions you take in the first 30 days can significantly impact your options and outcomes. During this critical window, you have the best opportunity to prevent federal penalties from compounding and maintain more flexible payment options with the IRS. Note that state tax authorities have their own distinct processes, deadlines and payment arrangements that may differ from federal requirements, and you may need to address any state tax obligations separately. 

Every day of delay can limit your choices and increase your total tax burden. Here’s your immediate action plan: 

1. File Your Returns on Time 

Even if you cannot pay the full amount, it is usually beneficial to file your tax returns by the deadline. Here’s why: 

• On a $50,000 tax bill, filing on time saves you $2,250 in penalties per month 
• Filing opens up payment options that aren’t available otherwise 

2. Assess Your Financial Situation 

Take a comprehensive look at your business finances: 

• Review current cash flow and projected income for the next 6 months 
• Create a detailed list of all assets and liabilities 
• Identify potential areas for immediate cost reduction 
• Evaluate assets that could be liquidated quickly if needed 
• Analyze accounts receivable for potential acceleration 
• Document your monthly income and expenses for negotiation purposes 

3. Keep Communication Open 

Don’t ignore IRS notices. Each type of notice has specific response deadlines and requirements. Missing these deadlines can result in: 

• Automatic escalation to more aggressive collection actions 
• Fewer available payment options 
• Additional penalties and enforcement actions 

Long-Term Prevention Strategies 

While resolving your current tax situation is the immediate priority, implementing strategies to prevent future tax issues is equally important. A proactive approach to tax management can help ensure you don’t face similar challenges in the future. 

Preventing future tax problems requires a systematic approach to tax management. Here’s a practical framework: 

Financial Management 

• Establish separate tax savings accounts with automatic transfers 
• Set aside 25-35% of revenue for taxes (percentage varies by business type) 
• Conduct weekly cash flow monitoring with tax obligations as a priority 
• Maintain a tax emergency fund equal to one quarter’s obligations 
• Review accounting systems quarterly for accuracy and compliance 

Tax Planning 

Regular engagement with tax professionals should focus on: 

• Quarterly tax planning meetings to review estimated payments 
• Monthly review of tax accruals versus actual liabilities 
• Strategic timing of income and expenses 
• Industry-specific tax credit opportunities 
• State and local tax compliance review 

Take Action with BPM Today 

With so many factors to consider – from immediate actions to long-term strategies – navigating tax challenges can seem daunting. However, you don’t have to face these challenges alone. 

At BPM, we specialize in helping businesses navigate complex tax situations with solutions that protect both your immediate and long-term interests. Our experienced team can: 

• Evaluate your specific situation and identify immediate savings opportunities 
• Negotiate with tax authorities to reduce penalties 
• Develop customized payment strategies that fit your cash flow 
• Implement preventive measures to avoid future issues 
• Create long-term compliance plans 
• Optimize your tax position for future growth 

Contact BPM today to discuss your situation with our tax professionals. We’ll help you understand your options and develop a plan to address your business tax obligations while protecting your company’s future. 

This article is for informational purposes only and does not constitute legal or tax advice. Please consult with a qualified tax professional regarding your specific situation. 

Businesses face a critical decision when outsourcing their technology needs: should they partner with a Managed Service Provider (MSP) or a Managed Security Service Provider (MSSP)? While these acronyms sound similar, they serve distinctly different roles in supporting your organization’s technology infrastructure and security posture. 

Understanding the fundamental differences between MSPs and MSSPs will help you make an informed decision that aligns with your business objectives, budget and risk tolerance.  

This article will explore the core functions of each provider type, examine their key differences and provide guidance on selecting the right solution for your organization’s unique needs.  

What MSPs bring to your business 

MSPs function as your outsourced IT department, delivering comprehensive technology services that keep your business operations running smoothly. They manage your entire IT infrastructure, from network administration and server maintenance to help desk support and software updates. MSPs focus on optimizing your technology environment to enhance productivity, reduce downtime and support business growth. 

These providers typically operate from Network Operations Centers (NOCs) where they monitor your systems around the clock. They handle routine maintenance tasks, resolve technical issues and ensure your technology scales with your business demands. Small and medium-sized businesses particularly benefit from MSP partnerships, as they gain access to enterprise-level IT capabilities without the overhead of maintaining an internal IT department. 

MSPs commonly provide services including network management, cloud migration support, endpoint management, help desk services and backup solutions. They also offer basic security services such as antivirus management and patch deployment, though security typically represents just one component of their broader service portfolio. 

How MSSPs protect your digital assets 

MSSPs specialize exclusively in cybersecurity, dedicating their resources to protecting businesses from evolving digital threats. Operating from Security Operations Centers (SOCs), these providers maintain 24/7 vigilance over your security infrastructure, monitoring for suspicious activities, investigating potential breaches and responding to security incidents.  

The cybersecurity talent shortage has made it increasingly difficult for businesses to build internal security teams. MSSPs solve this challenge by providing immediate access to security professionals who stay current with threat landscapes, compliance requirements and security best practices. They bring sophisticated tools and processes that would be cost-prohibitive for most organizations to implement independently. 

MSSP services encompass threat detection and response, vulnerability assessments, security awareness training, compliance management and incident response planning. They deploy advanced technologies like Security Information and Event Management (SIEM) systems, endpoint detection and response tools and threat intelligence platforms to provide comprehensive protection. 

Key differences that matter for your decision 

The primary distinction between MSPs and MSSPs lies in their scope and depth of focus. MSPs deliver broad IT services with the goal of optimizing business operations and supporting growth initiatives. They prioritize system availability, performance and user productivity across your entire technology stack. 

MSSPs concentrate solely on cybersecurity, aiming to prevent breaches, ensure compliance and minimize security risks. While MSPs typically provide baseline security services as part of their comprehensive offerings, MSSPs deliver advanced, specialized security capabilities that go far beyond basic protection measures. 

Consider your organization’s current IT capabilities when evaluating these options. Companies with limited IT resources often benefit from MSP partnerships that provide comprehensive technology support. Organizations with existing IT teams but insufficient security capabilities may find MSSPs more valuable for addressing their specific cybersecurity gaps. 

Making the right choice for your organization 

Your decision between an MSP and MSSP should align with your business priorities, existing capabilities and risk profile. Companies in highly regulated industries or those handling sensitive customer data typically require the specialized security focus that MSSPs provide. Organizations seeking to establish or expand their IT infrastructure often find MSPs better suited to their comprehensive technology needs. 

Budget considerations also play a significant role in this decision. MSPs often provide more predictable costs across multiple IT services, while MSSPs represent a focused investment in advanced security capabilities. Many businesses ultimately choose to work with both provider types, leveraging MSPs for general IT management and MSSPs for specialized security services. 

Evaluate your industry’s threat landscape, regulatory requirements and internal capabilities when making this decision. The right choice will depend on whether your primary need involves comprehensive IT support or specialized cybersecurity protection. 

Working with BPM for strategic technology guidance 

Selecting between an MSP and MSSP requires careful consideration of your organization’s unique requirements, risk tolerance and growth objectives. BPM understands that this decision significantly impacts your operational efficiency, security posture and long-term business success. Our technology advisors work closely with clients to evaluate their current capabilities, identify gaps and recommend solutions that align with their strategic goals.   

We help organizations navigate the complex landscape of managed service providers, ensuring they select partners who deliver measurable value and support their business objectives. Whether you need comprehensive IT management, specialized security services or a hybrid approach, BPM provides the strategic guidance necessary to make informed decisions about your technology partnerships. To discuss how we can help you evaluate and select the right managed service provider for your organization’s needs, contact us. 

The cryptocurrency industry reached a significant milestone this week as the CLARITY Act advanced through its first major hurdle in Congress. While this represents meaningful progress toward establishing a comprehensive regulatory framework for digital assets, the path ahead reveals both opportunities and challenges that could significantly impact how your business navigates the evolving crypto landscape. 

What is the CLARITY Act? 

The Digital Asset Market Clarity Act of 2025, commonly known as the CLARITY Act, is comprehensive bipartisan legislation designed to create the first unified regulatory framework for digital assets in the United States. Introduced by House Financial Services Committee Chairman French Hill and supported by both Republican and Democratic lawmakers, this 236-page bill serves as the successor to last year’s FIT21 Act. 

The legislation addresses a fundamental problem that has plagued the crypto industry for years: unclear regulatory jurisdiction between federal agencies. Currently, businesses often struggle to determine whether their digital assets fall under Securities and Exchange Commission (SEC) securities rules or Commodity Futures Trading Commission (CFTC) commodity regulations. 

The CLARITY Act resolves this confusion by establishing clear definitions for different types of digital assets and assigning specific regulatory responsibilities to each agency based on asset characteristics rather than leaving classification to regulatory interpretation. 

Key provisions affecting business operations 

Regulatory jurisdiction and compliance requirements 

The CLARITY Act would fundamentally reshape how your business approaches crypto compliance. The bill provides for a system in which crypto platforms can register with the CFTC or the Securities and Exchange Commission (SEC), depending on the type of asset handled: digital commodities like Bitcoin or financial securities. 

This represents a significant departure from today’s uncertain regulatory environment where platforms often face overlapping or conflicting guidance from multiple agencies. Under the new framework, a platform primarily dealing with Bitcoin and other digital commodities would register with the CFTC and follow commodity trading rules, while a platform offering tokenized securities or investment contracts would register with the SEC under securities regulations. Platforms handling both types of assets could potentially register with both agencies or choose the primary regulator based on their dominant business activity. 

This dual-track approach offers strategic flexibility but requires careful analysis of your digital asset portfolio to determine the appropriate regulatory pathway. 

Enhanced consumer protection measures 

The Clarity Act requires that crypto platforms be regulated as financial institutions under the Bank Secrecy Act, significantly elevating compliance obligations for many businesses. This change aligns crypto platforms with traditional financial institutions regarding anti-money laundering and know-your-customer requirements. 

DeFi and custody considerations 

The legislation addresses emerging areas of digital finance with specific provisions for decentralized finance operations. It excludes certain decentralized finance (DeFi) operations and wallet providers from SEC oversight, potentially reducing regulatory burden for these business models. 

Additionally, the bill prohibits regulators from requiring custody companies to hold clients’ assets on their own balance sheets, addressing a contentious issue that has concerned many crypto service providers. 

Industry concerns and controversial provisions 

Despite broad support, significant concerns have emerged about specific provisions in the amended legislation. Industry stakeholders have raised objections to what they characterize as a “Gensler-era” provision that could reintroduce regulatory uncertainty rather than resolve it. 

The controversy centers on changes that remove protections for previously issued tokens and fail to adequately limit SEC authority. Critics argue this approach contradicts the bill’s primary objective of providing regulatory clarity. 

These concerns echo past frustrations with inconsistent regulatory treatment, particularly regarding major cryptocurrencies like Ethereum and Ripple’s XRP. The industry’s reaction underscores how critical definitional precision becomes when establishing lasting regulatory frameworks. 

Strategic implications for your business 

Immediate preparation steps 

While the CLARITY Act continues its legislative journey, you can begin preparing for potential regulatory changes: 

• Assess your digital asset portfolio to understand which assets might fall under CFTC versus SEC jurisdiction 
• Review current compliance programs to identify gaps that enhanced Bank Secrecy Act requirements might expose 
• Evaluate custody arrangements to understand how new qualified custodian rules might affect your operations 
• Consider registration strategies for platforms that might benefit from dual regulatory pathways 

Long-term competitive positioning 

The legislation reinforces U.S. competitiveness in the global fintech space, where other jurisdictions—such as the European Union with MiCA—have already enacted comprehensive rules. Businesses that proactively adapt to the emerging regulatory framework may gain significant competitive advantages. 

The bill’s emphasis on American innovation and values suggests favorable conditions for domestic crypto businesses that demonstrate strong compliance cultures and consumer protection measures. 

Ready to navigate the evolving crypto regulatory landscape? The CLARITY Act’s provisions will significantly impact how businesses approach digital asset compliance and strategy. Contact BPM’s blockchain and digital assets team to discuss how these regulatory changes might affect your operations and develop a proactive compliance strategy that positions your business for success in the new regulatory environment. 

If you’ve been waiting for clearer regulatory guidance on stablecoins, the wait is nearly over. The uncertainty that has left many businesses hesitant to fully embrace these digital payment solutions is finally being addressed. On June 17, 2025, the U.S. Senate made history by passing The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act in a strong 68-30 bipartisan vote—marking the first-ever federal regulatory framework for stablecoins to clear the Senate. 

This legislative breakthrough could reshape how your organization approaches digital payments and opens new opportunities for businesses operating in the $250 billion stablecoin market, which is projected to grow to more than a trillion dollars in coming years. Let’s break down what this means for you and how to prepare for the changes ahead. 

Understanding the current stablecoin landscape 

The numbers tell a compelling story. Today’s stablecoin market sits at approximately $250 billion, with the two dominant U.S. stablecoins—USDT and USDC—representing $214 billion of that total market capitalization. These digital assets have gained traction as reliable payment and settlement tools, offering faster transaction speeds and lower costs compared to traditional payment methods. 

However, the lack of clear regulatory framework has created challenges for businesses looking to integrate stablecoins into their operations. The GENIUS Act addresses these concerns by providing the regulatory clarity the market has been seeking. 

Key provisions of the GENIUS Act 

While the bill represents historic progress for the crypto industry, it’s important to understand its specific scope. The GENIUS Act focuses exclusively on payment stablecoins—not all digital assets. The legislation defines payment stablecoins as digital assets designed for payment or settlement purposes, where issuers maintain obligation to preserve stable value relative to a fixed monetary amount. 

What payment stablecoins are not 

The bill makes clear distinctions about what payment stablecoins don’t represent: 

• They are not considered national currency 

• They don’t qualify as securities or commodities under the Investment Company Act of 1940 

Who can issue payment stablecoins 

Under the framework, only two categories of issuers are permitted to issue payment stablecoins: 

Subsidiaries of insured depository institutions – These entities would operate under existing banking regulations, providing additional consumer protection through established oversight mechanisms. 

Federal qualified nonbank payment stablecoin issuers – These organizations would require approval from the Comptroller of the Currency, creating a new regulatory pathway for non-bank entities to participate in the stablecoin market. 

Enhanced reserve requirements and oversight 

The legislation includes several critical provisions that strengthen stablecoin stability and oversight: 

1:1 Reserve Requirement – Permitted issuers must maintain reserves backing their payment stablecoins on at least a 1:1 basis, backed by cash or Treasury securities. While this has been considered an industry standard with both USDT and USDC issuing monthly attestations, this requirement now formalizes that practice into law. 

Mandated Independent Audits – Issuers above $50 billion must undergo independent audits, ensuring greater transparency and accountability for the largest stablecoin operators. 

Anti-Money Laundering and Sanctions Compliance – The framework includes robust AML requirements and sanctions compliance measures, along with national security guardrails to protect the financial system. 

Limits on Big Tech and Foreign Issuance – The legislation places stricter oversight on entities like Tether and includes provisions limiting Big Tech companies and foreign entities from issuing stablecoins without proper oversight. 

What this means for your business 

The GENIUS Act’s passage signals definitive regulatory acceptance of stablecoins as legitimate payment instruments. For your organization, this development translates into several immediate opportunities and considerations:

Conducting a comprehensive audit 

Before the new regulations take effect, consider conducting a thorough audit of your current digital asset activities. This assessment should examine your stablecoin transactions, custody arrangements, accounting treatment, and internal controls. 

An audit can help identify potential compliance gaps and provide a baseline for measuring your organization’s readiness for the new regulatory environment. Additionally, having documented audit findings will demonstrate proactive compliance efforts to regulators and stakeholders.  

Clear opportunities for adoption 

With definitive regulatory guidelines now established, you can confidently justify stablecoin integration in your payment systems. The framework reduces compliance uncertainty and provides a clear roadmap for incorporating these digital assets into your treasury management or customer payment options.

Planning for compliance 

If your business already uses stablecoins or plans to in the future, now is the time to prepare for the new regulatory requirements. The compliance landscape will become more structured, requiring updated policies and procedures that align with the 1:1 reserve requirements, audit mandates, and AML provisions. 

Vendor and partner evaluation 

As the regulatory framework takes shape, assess whether your current stablecoin partners and service providers will meet the new requirements. This evaluation process should begin immediately to avoid disruptions to your operations, particularly given the enhanced oversight on certain issuers like Tether. 

The road ahead 

While the GENIUS Act has successfully passed the Senate, the legislative journey continues. The bill now moves to the House of Representatives, where lawmakers may advance their own version (such as the STABLE Act) or merge it with broader crypto legislation like the CLARITY Act. 

Target Timeline – President Trump has indicated his intention to sign comprehensive stablecoin legislation into law by the August 2025 recess, creating urgency for House action. 

Potential Consolidation – Lawmakers may link stablecoin rules with wider crypto market reforms, potentially combining the GENIUS Act with the House’s Clarity or STABLE Acts for a more comprehensive digital asset framework. 

This timeline gives your organization a clear window to prepare. Rather than waiting for final passage, use this period to: 

• Assess your current stablecoin usage and future needs 

• Review existing compliance frameworks and identify gaps 

• Engage with legal, tax, and accounting professionals to understand implications 

• Monitor legislative developments and industry best practices 

Navigating regulatory complexity 

As stablecoin regulation moves toward final implementation, your business will face new compliance and reporting requirements. The intersection of traditional financial regulations with the newly established digital asset framework creates complexity that requires careful navigation. 

Understanding how these requirements apply to your specific situation—whether you’re a potential issuer, custodian, or user of stablecoins—will be crucial for maintaining compliant operations and capitalizing on new opportunities. 

Moving forward with confidence 

The GENIUS Act’s Senate passage represents a pivotal moment for stablecoin regulation in the United States. With bipartisan support and a clear path toward becoming law, this framework provides the foundation businesses have been waiting for to confidently integrate digital payment solutions. 

Your organization doesn’t have to navigate this evolving landscape alone. Having knowledgeable advisors who understand both traditional financial regulations and the emerging digital asset requirements can help you make informed decisions and position your business for success in this new regulatory environment. 

Ready to discuss how the new stablecoin regulations will impact your business? Our blockchain and digital assets team stays current with regulatory developments and can help you understand the implications for your specific situation. Contact BPM today to explore how we can support your digital asset strategy and compliance planning as we move toward final implementation. 

Mergers and acquisitions transform businesses, but success hinges on thorough preparation during the due diligence phase. You need comprehensive documentation to evaluate risks, validate assumptions and negotiate fair terms. Without proper organization and complete records, deals stall, parties lose confidence and opportunities disappear.  

8 categories of documentation due diligence checklist must include 

This article will outline the eight essential categories of documentation you need and explain why each component matters for successful M&A transactions. 

1. Corporate structure and legal foundation

 Start with your corporate documents, as these establish the legal framework of your business. You’ll need current articles of incorporation, bylaws and shareholder agreements that define ownership structures and voting rights. Board and shareholder meeting minutes reveal governance patterns and decision-making processes that impact operations. 

Stock certificates, capitalization tables and any preferred stock agreements show exactly who owns what percentage of the company. These documents prevent surprises during discussions and help buyers understand potential complications in ownership transfer.  

2. Financial performance and health  

Financial records paint the clearest picture of business performance over time. Compile three years of financial statements, including balance sheets, income statements and cash flow statements. Monthly management reports provide granular detail that annual statements might obscure. 

You’ll also need bank statements for all business accounts, credit agreements and documentation of outstanding debts or liabilities. Accounts receivable aging reports show collection patterns, while accounts payable details reveal vendor relationships and payment practices. 

Working capital analysis helps buyers understand seasonal fluctuations and cash requirements. Include budget forecasts and variance reports that demonstrate management’s planning accuracy and operational control. 

3. Tax compliance and obligations 

Tax documentation extends far beyond basic returns. Gather federal and state tax filings for the past three years, plus any correspondence with tax authorities regarding audits, disputes or settlements. Property tax assessments and payments show real estate obligations that transfer with ownership. 

Document any tax credits, incentives or special agreements that reduce tax burdens. Buyers need to understand whether these benefits continue post-acquisition or require renegotiation with local authorities. 

4. Revenue streams and market position 

Sales documentation validates growth claims and market positioning. Organize revenue data by customer, product line and geographic region to show diversification and concentration risks. Large customer dependencies become apparent through this analysis. 

Include sales pipeline reports, conversion rates and customer acquisition costs that demonstrate business development effectiveness. Customer contracts, especially multi-year agreements, provide visibility into future revenue stability. 

Marketing materials, competitive analysis and market research support growth projections and strategic positioning claims. SWOT analyses reveal management’s understanding of market dynamics and competitive threats. 

5. Human capital and organizational structure

People drive business success, making human resources documentation critical for integration planning. Compile employee lists with roles, compensation levels and reporting relationships. Organization charts show decision-making hierarchies and potential redundancies between merging entities. 

Employment agreements, especially those with key personnel, contain retention provisions, non-compete clauses and change-of-control triggers that affect post-acquisition operations. Benefits summaries help buyers calculate ongoing personnel costs and integration challenges. 

Document any pending employment disputes, discrimination claims or regulatory violations that create legal exposure. Union agreements and collective bargaining arrangements require special attention in unionized environments. 

6. Intellectual property and competitive advantages 

Intellectual property often represents the most valuable business assets in M&A transactions. Create comprehensive inventories of patents, trademarks, copyrights and trade secrets. Include pending applications and renewal schedules that require ongoing attention. 

License agreements, both inbound and outbound, define usage rights and revenue streams that may not appear in standard financial reports. Joint development agreements and research partnerships create shared ownership situations that complicate valuation and transfer. 

7. Technology infrastructure and security 

Technology systems enable modern business operations and require detailed documentation. Inventory all hardware, software licenses and cloud services with associated costs and renewal dates. Vendor contracts reveal dependencies on third-party providers and potential integration challenges. 

Cybersecurity policies, incident reports and audit results show risk management maturity. Data backup procedures, disaster recovery plans and business continuity protocols demonstrate operational resilience that buyers evaluate carefully. 

Document any security breaches, regulatory compliance issues or pending technology upgrades that require capital investment. Integration planning depends on understanding system compatibility and modernization needs. 

8. Regulatory compliance and risk management 

Industry-specific regulations create compliance obligations that buyers must understand and maintain. Compile all regulatory filings, inspection reports and correspondence with oversight agencies. Environmental assessments and remediation costs represent significant potential liabilities. 

Insurance policies, claims history and risk assessments help buyers evaluate ongoing coverage needs and potential exposures. Professional liability, product liability and general liability coverage gaps could create unexpected costs. 

Working with BPM for due diligence

Successfully navigating M&A due diligence requires meticulous preparation and professional guidance throughout the process. BPM provides comprehensive transaction advisory services that help you organize documentation, identify potential issues and present your business in the best possible light to prospective buyers or partners. 

Our transaction advisory team works alongside your existing advisors to ensure nothing falls through the cracks during this critical phase. We help streamline the due diligence process, address buyer concerns proactively and position your company for successful deal completion. To discuss how our transaction advisory services can help you achieve your strategic objectives, contact us.