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September 25, 2024

Laura Berry

Principal, Advisory Service Leader

Atlanta, GA

678-510-2790

[email protected]

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Top Questions to Determine if Your Transaction Needs a Deal CFO

Navigating a business transaction requires more than just a basic understanding of finances. It demands a strategic and tactical approach, especially when the stakes are high and the operational landscape is shifting. This is where a Deal CFO comes into play. If you’re in the midst of a significant transaction, consider these key questions to determine if you need the specialized expertise of a Deal CFO.

  1. Is Your CFO Overwhelmed by Day-to-Day Operations?

During a complex transaction, your existing CFO might be bogged down by routine operational responsibilities, and making it challenging for them to focus on the intricacies of the deal. A Deal CFO can provide the extra horsepower needed to drive the team, ensuring that both the transaction and daily operations are managed effectively. By stepping in temporarily, a Deal CFO allows your regular CFO to concentrate on their core responsibilities, reducing the risk of operational disruption.

  1. Have You Recently Experienced a CFO or Controller Departure?

The sudden departure of a CFO or controller can leave a significant gap in your financial management, particularly during a transaction. A Deal CFO can fill this void, providing interim leadership and continuity. This is especially crucial if you’re in the process of preparing for a sale. They can help maintain stability, manage ongoing financial activities and ensure that the transaction progresses smoothly.

  1. Are You Preparing for a Sale and Need Specialized Financial Guidance?

When preparing a business unit or entire company for sale, the process involves complex financial adjustments and strategic planning. A Deal CFO can assist in preparing your company for the transition by managing financial reporting, ensuring compliance with new regulations and implementing necessary changes to maintain business operations as a separate entity. For instance, if a small business is being sold where the existing accounting practices are rudimentary, a Deal CFO can help establish new accounts, handle business licensing and integrate these changes seamlessly.

  1. Do You Need Assistance with Due Diligence and Integration Post-Acquisition?

For companies on the buyer’s side, especially when acquiring a carve-out, the process can be complex. A Deal CFO can play a crucial role in due diligence, assessing financial risks and making sure that the acquired entity integrates smoothly into the parent company. This is particularly important when the acquired business has unique financial practices or lacks adequate operational support. A Deal CFO can bridge the gap between the buyer and seller’s accounting practices, contributing to an efficient transition. Additionally, a Deal CFO can help manage the process of software migration resulting from a deal, which can help take the pressure off of existing staff.

  1. Are You Facing Challenges with Financial Processes and Procedures?

Effective financial management during a transaction often involves creating or improving processes and procedures. This includes everything from setting up internal controls to overseeing proper cash forecasting. If your organization is struggling with these aspects—whether due to deficiencies in current practices or the need for new processes—a Deal CFO can provide the expertise required to address these issues for a successful transaction, such as streamlining procedures, enhancing internal controls and preparing documentation.

  1. Is Your Transaction Complex or Unique to Your Industry?

Certain industries, such as service industries or manufacturing, have specific financial and operational nuances that can complicate transactions. If your business operates in a specialized sector, the expertise of a Deal CFO can be invaluable. They bring industry-specific knowledge that can address unique challenges so that the components of your transaction can adhere to industry standards and practices.

  1. Do You Need Support in Reporting and Compliance as a Separate Entity?

If your transaction involves reporting as a separate entity, a Deal CFO can assist in setting up and managing financial reporting structures that meet regulatory and compliance requirements. This is essential for maintaining transparency and accuracy throughout the transition period.

Windham Brannon’s Deal CFO Service

Windham Brannon’s Deal CFO Service offers more than just temporary financial oversight; we provide strategic guidance and operational support that is crucial for navigating complex transactions. If you are planning for a future transaction or need help with a current one, reach out to your Windham Brannon advisor today, or contact Laura Berry.

 

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