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Getting Investable

One version of the truth: why disconnected data discounts your deal

Ric Wilson ·

Which number is the real one?

Ask most owners a simple question. What was your margin last month? Watch what happens.

They open the accounts package. Then someone pulls a spreadsheet. Then sales quote a different figure from the CRM. Then there's a caveat about a big invoice that hasn't gone in yet, and a stock number nobody fully trusts. Three sources, three answers, and a room slowly agreeing on a figure that's roughly right.

That's the problem. Roughly right is a killer at exit. A buyer wants one number that's true, and wants to see where it came from.

"Multiple versions of the truth don't just confuse you. They discount you."

Why disconnected data costs real money

When your data lives in separate systems that don't talk, every important number becomes a negotiation. Sales says one thing, finance says another, the warehouse says a third. Nobody's lying. The systems just don't agree, so someone has to reconcile them by hand and pick an answer.

That works, more or less, while you're running the business. It falls apart the moment a buyer looks under the bonnet.

Here's what a buyer sees when the data is fragmented. They see numbers they can't verify. They see a business that depends on a few people manually stitching reality together every month. They see risk they can't measure. And when a buyer can't measure risk, they don't pay you the benefit of the doubt. They price for the worst case.

Every unverifiable number is a discount waiting to happen. Not because the business is bad, but because the buyer can't prove it's good.

Due diligence is where it bites

You might get away with messy data for years. Diligence is where it stops being a nuisance and starts being expensive.

In diligence, a buyer's team pulls at every thread. They ask for the same figure three different ways and check that it matches. When it doesn't, and with disconnected systems it won't, one of two things happens.

They lose confidence in all your numbers, not just the one that didn't reconcile. Once trust cracks, it spreads. If the revenue figure was shaky, what about the margin? What about the pipeline? The whole story is now suspect.

Or they chip the price. Every discrepancy becomes a reason to knock the offer down or hold money back in the deal. Your messy data literally shows up as a lower number on the final page.

What one version of the truth looks like

The fix isn't complicated to describe. It's one place where the important numbers live, fed by the systems that actually run the business, agreeing with each other because they share the same source.

When you've got that, a few things change.

  • You can answer "what's our margin" in seconds, and it's the same answer whoever asks.
  • The numbers a buyer verifies in diligence match the numbers you gave them. Trust holds.
  • Reporting stops eating your finance team's week.
  • You spot problems while they're small, because you can see them, instead of finding out at month-end.

This is the visibility a buyer pays for. It's the difference between a business that can show what's true and one that can only tell a story about it.

It's a platform decision, not a spreadsheet fix

Owners try to solve this with a better spreadsheet. A cleverer dashboard. Another person to do the reconciling. That's patching the symptom.

The real fix sits deeper. It's the systems underneath the business, the platform that all the data runs on. When that platform ties the moving parts together, the single version of the truth is a by-product. It just falls out of how the business works. When the platform is a patchwork, no amount of spreadsheet heroics gives you numbers a buyer will trust.

This is core Build work. Before you Scale by acquisition, you want a platform that produces clean, trusted numbers, because the day you buy another business, you've got to fold its data into yours. Try doing that with a patchwork and you get two messy businesses, tangled together. Buy on top of a clean platform and integration is a task. Buy on top of chaos and it's a crisis.

Where to start

Start with the honest question. If a buyer asked for your key numbers three different ways tomorrow, would they match?

If you hesitated, that's your answer, and it's worth acting on long before you go to market. Cleaning up your version of the truth is one of the highest-return things you can do ahead of an exit, and it takes time, so start early.

A strategy call includes a hard look at how your data holds together and where a buyer would lose confidence. It shows you the gaps while you've still got time to close them. Book one and we'll map it out.