Mergers & Acquisitions
Frequently Asked Questions
As a first step, a fractional CFO leads a buy-side search by working with the client’s owners to formulate the criteria for making an acquisition. The CFO then proceeds to research acquisition targets, using a variety of tools, including business databases and industry networks. Contacting target companies is a delicate matter that requires professionalism and sensitivity. A good CFO can handle this process. After a target indicates interest, a CFO will help conduct qualitative and quantitative due diligence. Financial models should be used to assess targets’ financial health, growth potential, and synergies. At the end of the process, a fractional CFO can help negotiate deal terms, secure financing, and mitigate transaction risks.
A fractional CFO drives post-transaction integration by aligning systems, processes, and teams to realize deal synergies. They oversee the integration of accounting, budgeting, and reporting systems, streamline operations management, and address cultural or workflow conflicts. Furthermore, they may consolidate ERP systems or restructure internal teams to improve efficiencies. By monitoring KPIs and managing integration steps, a fractional CFO helps a company navigate the transition to consolidated operations.
A fractional CFO prepares your business for sale by optimizing financial reporting integrity, improving profitability, and ensuring clean, transparent records. They also may conduct a valuation, identify value drivers, and address any operational weaknesses. When the time comes to market your business, a fractional CFO can handle the technical accounting questions that will likely be raised by the business broker, bankers, or the buyer’s advisors. Through these types of planning activities, a fractional CFO will help maximize sale value and facilitate a smooth transaction process.