Acquisition work is hard, and I mean really hard. It can literally bring a management team to its knees from pre-diligence, to due diligence, to post-acquisition transition activities.
Even small deals for businesses under $10 million in revenues are not easy.
Acquisition work is both art and science. And does your current financial and accounting team have this experience?
For smaller deals, this work can be done in a consulting relationship. But once deals start getting into that range where the target is $50 million or more in sales, you’ll need someone that can bird dog this project from start to finish.
By having a CFO in a full-time position during this time period allows the current financial team to take care of its regular day-to-day business.
Part-time or full-time. It will really depend on a number of factors. In this situation, we just need to look at what needs to be done and build a project plan around the need. The plan will drive the CFO time needed for your acquisition.
Divestitures, Those Too
Selling is just as hard as buying a business. The most important work in liquidating a business is pre-diligence. Nail that down, and the rest is like falling off a log. Okay, maybe a slight exaggeration, but the work following pre-diligence becomes much, much easier.
Likewise, we just need to build out a plan. Long or longer deals may require a CFO on a near, full-time basis. Maybe, maybe not. The plan will reveal that need.