Mergers and acquisitions are a way to grow your business and increase your company’s value. They are, however, complicated processes that begin well before and extend long beyond the close of the deal. If your company is considering a merger or acquisition, you may want to retain the services of an outsourced chief financial officer (CFO) to help make sure the transaction is successful. Some of the ways a CFO can be involved in a merger include:
Due diligence and analysis. By rigorously analyzing the both target of acquisition or merger and the company that is making the offer, a CFO makes certain that the proposed transaction is solid and the performance of both companies is consistent with the assumptions used when developing the deal.
Conducting the transaction. A CFO makes certain that the structure and execution of the merger or acquisition is smooth, and provides the operational oversight that ensures the newly merged or acquired company is run effectively.
Establishing controls. In the initial period following a merger or acquisition, there are myriad details involved in integrating two companies with different accounting, human resource, and other organizational policies. A CFO can create a stable organizational structure, training existing and new employees on procedures and ensuring compliance with regulations.
Providing guidance for the post-merger environment. Many decisions are made during mergers and acquisitions that affect a company for years to come. CFOs are a critical resource for fact-based information about budgets and possible commitments. CFOs can also help integrate management teams, showing them how their processes and programs can fit together synergistically.
With any merger or acquisition, it’s critical to develop a clear plan, with a structure that lays out each stage of the process, outlining what decisions and actions need to be made at each stage. A CFO will help you both in creating a plan prior to the deal and in developing a structure that allows your company to be successful after the transaction. If your business is considering an acquisition or a merger, you can take advantage of the services of an outsourced financial professional from CFO Strategic Partners. For a free analysis of your business, contact us at 407-426-8288.