Building Financial Trust for Business Growth
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A pre-revenue biotech company (the Company) was on the brink of groundbreaking discoveries in medical R&D. To continue their innovative research and eventually move to market, they required substantial funding. The challenge lay in securing this financial backing due to their pre-revenue status, necessitating validation of the financial statements to attract potential investors.
Challenge:
The Company faced the dual challenge of not only securing funding but also establishing credibility and trust with potential investors and partners. Given the firm's pre-revenue nature and the high risks associated with biotech R&D, the task was to find a competent CPA firm experienced in the biotech sector. This firm needed to validate their financial statements swiftly, within a tight six-week window, to meet critical funding timelines.
Approach:
To address these challenges, the CEO identified and selected H&B, a reputable CPA firm, with expertise in biotech and an agile, client-centric service approach. The audit team, led by seasoned CPA Geri Wood, adopted a strategic and transparent audit process:
Clear Communication:
Wood and her team meticulously outlined the audit process, ensuring their client understood each phase, fostering transparency and trust.
Customized Services:
Recognizing the unique needs of a biotech firm, H&B tailored its audit services to specifically address the intricacies of biotech financials and proper R&D classifications.
Regular Updates:
A structured communication schedule was put in place, allowing for constant updates and adjustments. This ensured that both H&B and the Company were aligned at every audit phase.
Year-Round Support:
Beyond the initial audit, H&B committed to providing ongoing support to the Company, including regular updates on industry-specific financial practices.
Staff Continuity for Consistent Results:
H&B demonstrated its commitment to staff continuity by retaining the same core team throughout the project with the client and will continue to do so for all future work, recognizing that this approach enhances outcomes and strengthens client relationships.
Result:
The precise and swift validation of the biotech company’s financial statements played a pivotal role in building trust with potential investors. The Company successfully secured the necessary funding to progress their research and move closer to market readiness. They valued H&B’s collaborative and customized approach, which not only met their immediate needs but also positioned them favorably for future financial engagements and strategic growth. The Company now looks forward to a sustained partnership with H&B.