Situation
Preparing for an exit
Value is lost in diligence, and it is lost on things that were fixable years earlier — customer concentration nobody addressed, contracts that do not assign, a finance function that cannot produce a quality of earnings, key-person dependency written all over the org chart.
The work is temporary and the deadline is real. A fractional or interim mandate covering the eighteen months before a process is one of the highest-return uses of the model.
What this calls for
- Quality of earnings and normalised EBITDA a buyer will accept
- Contracts that assign, and customer concentration addressed
- Key-person dependency reduced and documented
- Clean corporate records, cap table and intercompany positions
- A management team that can present without the owner
Roles usually bought
CFO
Fractional CFO
Cash, controls, reporting and the numbers investors and lenders will actually believe.
COOFractional COO
Turning a business that works because people try hard into one that works because it is designed to.
CTOFractional CTO
Technical judgment for companies whose product decisions have outgrown their engineering.