The CFO'S Perspective

Our CFOs get asked about business exit options a lot, especially these days. Business owners that are looking to step away to pursue other endeavors, interested in cashing out to get the full value of their hard work, or nearing retirement all wonder when they should make their move to maximize their gain.

While last year’s expected Federal tax rate increases did not happen, there is still lingering apprehension around the timing of exiting your business. So, though the urgency we witnessed last year has dissipated, the ongoing question still remains: should you sell your business this year, next year, or not at all?

Downsizing is never a light topic to broach, but for businesses that are financially compromised or experiencing a reduction in demand, it is important to fully understand before any strategic planning can begin.

Downsizing is often tied to a reduction in headcount. Headcount is more than just a number, which is why downsizing should be approached with the utmost care and consideration. Knowing why a company should downsize, what kind of risk is associated with doing so, and how to avoid common mistakes is key to increasing the likelihood that your reduction efforts will be successful.

Use this guide to get a better understanding of the implications of downsizing and help inform your strategic planning as it relates to both maintaining your business and preparing it for sale.

When a business changes ownership, the CFOs of both businesses have a particular set of duties and responsibilities. This article discusses the role of the CFO in the selling entity.

Preparation, and expert guidance are key for a successful middle-market business transaction.

READY OR NOT?

Owners and CEOs of middle-market companies may encounter a business acquisition or divestiture opportunity without the benefit of prior transaction experience. Likewise, such organizations may be supported by a finance and accounting function that has not participated in the purchase or sale of a business.

While investment bankers and other advisors are well-positioned to initiate transactions, and provide guidance throughout the process, the company’s own management team – particularly in the area of finance and accounting – may need to be augmented by additional deal-experienced resources.

The assessment by a first-time buyer or seller of the transaction-readiness of its finance and accounting resources is an important step toward achieving the objective of accelerating the completion of a transaction while minimizing the disruption of the underlying business.

The sections that follow identify a number of concepts a first-time middle market buyer or seller may wish to consider in assessing its level of preparedness for a transaction.