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Erudite AfricaCenter of Excellence
← Financial Management for SMEs: Strategic Financial Management

Investment Readiness

Module 02 / 6 · 60 min

Prepare investor-ready financials, show the true earnings of the business, pass financial, tax and legal due diligence and meet what banks need before they lend.

In this module you will learn to

  • Describe what investors and banks look for before they commit money to an SME
  • Prepare an investor-ready financial package built on audited IFRS for SMEs statements
  • Normalize EBITDA honestly for owner costs, one-off items and related party terms
  • Organize due diligence and a data room, including a tax health check
  • Assess bank financing readiness using capacity, capital, collateral, conditions and character

Built on

  • Erudite Africa training curriculum: Financial Management for SMEs, Level 3 Advanced, Strategic Financial Management (October 2026)
  • Income Tax Proclamation No. 979/2016 as amended by No. 1395/2025; VAT Proclamation No. 1341/2024 and VAT Registration Directive No. 1104/2025; Federal Tax Administration Proclamation No. 983/2016 as amended by No. 1434/2026
  • Capital Goods Leasing Business Proclamation No. 103/1998 as amended by No. 807/2013; Investment Proclamation No. 1180/2020; Investment Incentive Regulation No. 586/2026
  • Commercial Code Proclamation No. 1243/2021 and Financial Reporting Proclamation No. 847/2014 (IFRS for SMEs, AABE filing)
  • NBE Directives No. NBE/INT/13/2026 (interest rates), SBB/95/2025 (capital adequacy), FXD/01/2024 and FXD/05/2026 (foreign exchange)
  • Published good practice on financial modeling, quality of earnings review and the balanced scorecard (Kaplan and Norton)

Examples and companies are fictional. Tax rates and rules are shown as they stood when the course was written; always check the current proclamations, directives and guidance from the Ministry of Revenues before filing, and take professional advice for your own case.