A lot of entrepreneurs think of their business like their child. After all, they created it and watched it grow over the years. But when a business owner is ready to sell, they need to look at it through the eyes of a shrewd business person, not a proud parent. After all, a sale of this magnitude will undoubtedly be the most important one ever.
With so much at stake, it’s critical to have the right person as CFO. After all, the CFO has a lot to do with the success of the sale.
- The pre-sale phase. When a business owner decides to sell, it’s the CFO’s responsibility to ensure the company’s financial records are up-to-date, accurate, and favorably represent the business. This systematic and sometimes painful assessment often leads to changes that improve financial performance.
- The sales process. The CFO plays a significant role in this process. Selecting suitable brokers and mergers & acquisition professionals for the sale is critical, and the task often falls on the CFO. CFOs are also involved in meetings with prospective buyers, evaluation of offers, and negotiations. During this phase, they work closely with tax advisors to maximize the tax benefits of any deal. They work with legal advisors to outline the seller’s expectations in a letter of intent (LOI) and to maximize benefits and finalize a purchase and sales agreement (PSA).
- The due diligence period. Once the PSA is finalized, the buyer will request a due diligence review. It’s the CFO’s job to ensure the information is delivered timely and accurately.
- Post-sale stage. After the sale, when systems and departments need merging, CFOs lead discussions on the least disruptive ways to unify financial processes and procedures.
CFOs have a critical role in the sale of a business, one that significantly impacts the success of the sale. Having the right team in place is essential. Miami CFO has the executive-level financial team and financial perspective to support you through a successful sale. Use this link to schedule a meeting and get the help you need now: https://calendly.com/miami-cfo.