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The Deal Economy

Our products drive profitable growth with your trading partners. We’re rethinking the way the deal economy works.

How our software can assist  pre-merger due diligence

The Deal EconomyMay 18, 2017

Merger and Acquisition (M&A) activity often starts well before the actual merger with a period of due diligence where the value of the acquisition is assessed. For businesses in the building materials, food, pharmaceuticals and other sectors who buy and sell finished goods, the driver is often increased buying power, and the imperative for due diligence is to clearly understand the value that new buying power could achieve. Carrying out that due diligence work demands extracts of purchase vo...Continue reading

Managing B2B deals post merger and acquisition

The Deal EconomyMay 11, 2017

We are witnessing a huge volume of merger and aquisition activity. 2015 saw the highest level of merger and acquisition activity in the UK with over 6500 mergers and acquisitions being completed in the UK with a total value of £433bn. Fast forward to today and merger and aquisition deals have totalled $42.9bn (£35bn), down 69 per cent on the same time last year, according to data from Refinitiv. But despite the large drop in value, the number of deals has fallen only five per cent. What are mer...Continue reading

5 sales tips for building materials distributors

The Deal EconomyApril 19, 2017

The worldwide building materials sector is buoyant at the moment. According to StrategyR the global construction materials market is expected to grow to $US1.1 trillion by 2020. The biggest growth area is expected to be AsiaPac, closely followed by the US. This should be music to the ears of those in the building materials distribution industry as the demand for construction materials will ripple through to increased demand for industrial, plumbing, HVAC, electrical and other building supplies....Continue reading

129 million reasons to address the symptoms of poor rebate accounting

The Deal EconomyMarch 28, 2017

Today it was announced that Tesco has agreed to a £129m fine to avoid prosecution by the FCA for overstating its profits in 2014. The root of the problem is believed to be premature recognition of rebate income from suppliers. For organisations that benefit from supplier or vendor rebates, the spectre of incorrectly reported rebate income and any resulting audit investigation should weigh heavily on the minds of finance teams and at board level. There have been calls from the Financial Reportin...Continue reading

6 ways to improve your rebate accounting processes

The Deal EconomyMarch 22, 2017

The complexities involved in managing complex trade agreements and rebate accounting and retrospective discount payments are often difficult to model in manual systems such as spreadsheets and basic accounting software. Organisations opting to calculate, forecast and accrue rebate income in this way leave themselves at risk of inaccuracies, missed opportunities and supplier disputes. Below are 6 ways to improve your rebate accounting processes in order to: remove the risks associated with manu...Continue reading

4 rebate accounting mistakes to avoid

The Deal EconomyMarch 14, 2017

Businesses managing complex trading agreements face several hurdles that are difficult to overcome entirely when using manual processes and spreadsheets. Lack of transparency, inaccuracy and limited control of rebate accounting processes is common and the ramifications of these can have a damaging effect on profit, compliance, cash flow and business growth. For example, an accounting mistake that supermarket retailer Tesco made meant a £129m fine to avoid prosecution by the FCA for overstating i...Continue reading

IFRS 15 — Creating SMART deals to aid purchasing compliance

The Deal EconomyMarch 9, 2017

In our online guide “IFRS 15 — 7 steps to prepare for January 2018” one of our suggestions is to review every deal in every contract and make it SMART. We think that whilst it’s a good idea as part of financial compliance, SMART deals are good for anyone who manages a contract with complex rebate deals, so we thought we would share it with you. A SMART deal is like a SMART objective in project management terms, namely: Specific Be VERY specific. If a deal refers to “across all product lines”, i...Continue reading

Rebate management for building materials distributors

The Deal EconomyMarch 1, 2017

Missing out on claiming manufacturer’s rebates is like negotiating a higher price with your suppliers. It simply shouldn’t happen! That's why we created {{cta('a2f66229-8bba-41bc-b443-cb17df844880')}} — rebate management system chosen by several building materials wholesale distributors and buying groups. There are many examples in the building materials business where, instead of agreeing an up-front discount, discounts are given in the form of rebates based on actual volumes purchased. For th...Continue reading

IFRS 15 — seven steps to prepare for January 2018

The Deal EconomyFebruary 16, 2017

IFRS 15 ‘Revenue from Contracts with Customers’ comes into force on 1st January 2018. The new financial reporting standards (IFRS 15) have a particular impact for businesses who regularly have contracts that contain “elements of variable consideration”. IFRS 15:51 provides us with examples of “variable consideration” which include rebates, incentives, refunds, performance bonuses, credits, price concessions, penalties or other similar items — items that impact the real net-net price and ultima...Continue reading

3 major risks of NOT having a robust rebate management system

The Deal EconomyFebruary 15, 2017

It isn’t unusual to find that rebate agreements cannot be fully represented within ERP systems and spreadsheets, resulting in disparate sources of information being stored within ERP systems, spreadsheets and even people’s heads! This management headache is multiplied when you consider these 3 major risks: lack of control over profitability, with poor understanding of true margin at point of sale, and roughly estimated true product costs feeding into profit calculations missed revenue opportun...Continue reading

4 alternative solutions for rebate accounting

The Deal EconomyFebruary 7, 2017

Most businesses have a choice of 4 types of system to manage their trading agreements, but that doesn’t mean each one is the right fit for every business. We explore all options below. 1 — Your core ERP system Basic ERP systems do not cope with vendor rebates very well at all. Some ERP systems do have bolt-on vendor rebate modules. They tend to provide some flexibility but in a very complex environment the standard module is often not up to the job and incapable of modelling all the product / pr...Continue reading

What is rebate management software?

The Deal EconomyFebruary 1, 2017

What is a rebate? And how do they work? Rebates were “invented” as a way of driving sales growth without simply reducing the contract price. By agreeing these retrospective financial incentives based on actual sales, both the supplier and the distributor are working together to drive market share and growth.Rebates often act as either a reward for loyalty or as an incentive for increasing trade with a specific trading partner because the benefits of a rebate agreement tend to improve as trade wi...Continue reading

Buyers considerations for contract management software

The Deal EconomyJanuary 10, 2017

If you’re responsible for procurement in a buying group, wholesale distributor, multi-site or large business (such as building materials, HVAC, plumbing and electrical supplies businesses or buying groups of all types) then it’s likely you have a need for a contract management system that can accurately deal with supplier rebates. Rebates were originally designed to aid both the manufacturer and the distributor to grow product sales without resorting to a price war. By maintaining a set price th...Continue reading

Why ERP won’t solve your complex vendor rebate accounting problems

The Deal EconomyJanuary 3, 2017

Complex ERP and supply chain systems such as SAP are built to cover a broad range of requirements for organisations in a lot of different sectors. If you have a need for niche, deeper industry specific functionality such as complex vendor rebate management, then trying to force your organisation’s needs and processes to fit with general ERP functionality limits your ability to maximise value from your vendor rebates.The best of breed vs ERP debate has raged ever since ERP packages became availab...Continue reading

ROI calculator for rebate management systems

The Deal EconomyAugust 23, 2016

Our rebate management system: DealTrack is aimed at those businesses for whom a significant portion of their margin results from vendor rebates, retrospective discounts, tiered discounts and the like. Businesses in the building materials, wholesale distribution and those who are part of buying groups frequently trade on these deal types. Since we first released DealTrack we have monitored the return on investment that has been enjoyed by users of this rebate management system and I wanted to sha...Continue reading

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