CASE STUDY: Pre-Exit Playbook — Financial Transformation to Maximize Exit Value
PRE-EXIT PLAYBOOK: STRATEGIC FINANCIAL TRANSFORMATION TO DE-RISK DUE DILIGENCE & MAXIMIZE EXIT VALUE
BACKGROUND
The investment banker representing Chemistry Communications, a nationally recognized and award-winning advertising agency, recommended Fahrenheit Advisors to provide an interim CFO with deep transaction experience to partner with the on-staff CFO and accounting team during the sale process.
OBJECTIVES
- Provide experienced deal leadership to guide and support the due diligence process.
- Drive financial and process improvements to maximize deal value and ensure a successful closing.
RESULTS
TRANSACTION COMMUNICATION:
Acted as the liaison between internal executives and external parties to facilitate an efficient information flow and diligence process.
MONTH-END CLOSE AND FINANCIAL REPORTING IMPROVEMENTS:
- Clarified profitability and established a documented defensible position on EBITDA for the Quality of Earnings.
- Integrated financial reporting by using a simplified chart of accounts and streamlining select areas to provide accurate reporting across Chemistry’s five companies.
- Shortened month-end close cycle from 3+ weeks to < 9 days.
ENHANCED DEAL VALUE FOR SELLERS:
Identified key FP&A initiatives that drove significant mid 7-figure deal value for the seller by:
- Aligning current liabilities to deferred revenues, and
- Reducing tax liabilities while successfully navigating an IRS audit.
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