Topics: Finance & Accounting Outsourcing, Finance and Accounting Transformation, PBSA, Student accommodation, Student Housing

The Investor’s Perspective: Why Streamlined F&A Operations are Crucial for PBSA Companies

Posted on May 04, 2023
Written By Vatsal

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The purpose-built student accommodation (PBSA) sector has seen a lot of merger and acquisition (M&A) activity in recent years. According to KnightFrank research: “student housing across Europe continued at pace in 2022 with a record £13.1 billion deployed across approximately 270 transactions.”

For PBSA owners looking to sell properties or attract investment, having streamlined operations is a key factor in the success of these endeavors. Institutional investors consider operational efficiency to be a top priority when evaluating investment opportunities. In this article, we will discuss why having streamlined F&A operations is particularly important for PBSA companies, and the benefits they can reap by investing in this area.

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Student housing was the only asset class with higher YoY investment in 2022.

Streamlined F&A Operations are Crucial for PBSA Companies

Streamlined F&A operations can have a significant impact on the ability of PBSA companies to secure investment or loans. When potential investors or lenders see a company with well-organized financial and accounting processes, it inspires confidence and trust in the business. Here are some of the specific ways in which streamlined F&A operations can help:

Improved Financial Visibility: A streamlined F&A process enables companies to quickly access accurate financial information, including cash flow statements, income statements, and balance sheets. This level of transparency makes it easier for investors to understand the company’s financial position, and can make them more likely to invest or provide financing.

Better Risk Management: Efficient F&A processes also help companies manage risk effectively. By ensuring that all financial data is accurate and up-to-date, companies can make more informed decisions about investments, identify potential areas of risk, and take corrective action before issues become critical. This level of risk management is an attractive feature to investors and lenders who want to ensure that their investments are protected.

Easier Access to Capital: Companies with streamlined F&A operations are better positioned to access capital when needed. Lenders and investors are more likely to provide financing to companies with transparent financial reporting and efficient accounting processes. Additionally, when seeking investment or financing, companies with streamlined F&A operations are more likely to be able to quickly provide the necessary financial information, which can speed up the approval process.

Improved Valuation: Finally, companies with streamlined F&A operations may be valued more highly by investors or lenders. By presenting accurate and up-to-date financial information, companies can demonstrate their financial health and growth potential, which can make them more attractive investment targets. This can result in better valuation and more favorable financing terms.

Improved Operational Efficiency: Streamlined F&A processes can also improve operational efficiency in other areas of the business. By automating certain financial processes, companies can reduce the time and resources required for manual data entry and other administrative tasks. This can free up staff time to focus on other areas of the business, such as improving the customer experience or developing new products and services.

RELATED CASE STUDY: Delivering process efficiency through end-to-end F&A outsourcing solutions

Better Compliance: Companies with streamlined F&A operations are better equipped to comply with regulatory requirements. By ensuring that all financial records and reports are accurate, up-to-date, and easily accessible, companies can quickly provide the information needed to comply with regulatory standards. This level of compliance can make companies more attractive to lenders and investors who want to minimize their own risk exposure.

More Accurate Financial Forecasting: With streamlined F&A operations, companies can generate more accurate financial forecasts. This is particularly important for PBSA companies, which may have long-term contracts with universities or other educational institutions. By having a better understanding of future revenue streams, companies can make more informed decisions about investment and expansion, and can communicate more effectively with investors and lenders.

Better Communication with Stakeholders: Streamlined F&A operations can also improve communication with stakeholders. By having accurate and timely financial information available, companies can communicate more effectively with investors, lenders, and other stakeholders. This level of transparency can help build trust and confidence in the business, which can in turn make it easier to secure investment or loans.

Improved Business Performance: Finally, streamlined F&A operations can lead to improved business performance overall. By having accurate and up-to-date financial information available, companies can make better decisions about where to allocate resources, which investments to pursue, and which areas of the business to prioritize. This can result in better business performance, which can make the company more attractive to investors and lenders.

RELATED CASE STUDY: Improved financial reporting for PBSA giant through consolidated group budget template

Transform your Finance & Accounting Operations

To stay competitive and profitable, every aspect of your business needs careful attention. By investing in streamlined F&A operations, you can attract investment and loans, gain improved financial visibility, better risk management, and more accurate financial forecasting.

With mergers and acquisitions activity on the rise in the PBSA sector, having streamlined F&A operations is crucial. QX Global Group is the partner of choice for the top 9 out of 20 PBSA companies in the UK and US, and we can help you transform your F&A operations. Our expert consultants and transformation experts offer a free no-obligation consultation to help you achieve your business goals.

Investing in streamlined F&A operations is key to success in today’s competitive business landscape. With QX Global Group as your partner, you can be confident that your F&A operations are in good hands. Contact us today to learn more.

Originally published May 04, 2023 07:05:04, updated May 04 2023

Topics: Finance & Accounting Outsourcing, Finance and Accounting Transformation, PBSA, Student accommodation, Student Housing


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