Exiting Your Business in The Next 10 Years? When Should You Use Fractional Finance Experts?

It’s easy to get caught up in the excitement of starting and running a successful business, but one critical aspect is often overlooked: exit planning. Of course, every owner dreams of achieving a prosperous exit, but many get too busy to sort out the finances. This short article will examine why you should address your finances and the benefits of engaging fractional Finance Directors, Financial Controllers and Finance Managers.

Why Sorting Out Finances is Overlooked in Exit Planning:

Exit planning is complex; many business owners either fail to acknowledge they need to address the financial aspect of their business in the process or hope it will disappear if they ignore it. However, you need to understand your company’s financial health before anyone else does, but sometimes, in the hustle and bustle of day-to-day operations, the finances can be overlooked.

Organising your finances ahead of time can positively affect the valuation of the business and help with a smooth transition at the point of exit. You can address issues now and make the business more appealing to potential buyers or investors.

The Benefits of Fractional Finance Experts:

Fractional Finance Directors (sometimes called CFOs), Financial Controllers, and Finance Managers are vital in ensuring your business is in the best state ahead of sale. Here is how they can help.

1. Expertise Without the Overhead:

Fractional finance professionals provide expertise without a full-time equivalent’s annual income, recruitment costs and HR issues. They bring in their years of experience and insight, helping you make informed financial decisions.

2. Strategic Financial Planning:

They can concentrate on achieving finance function effectiveness while you focus on what you’re good at, running your business. They analyse cash flow, measure profitability, identify financial risks, and offer invaluable advice to ensure your business is in the best financial state.

3. Risk Management:

Risks must be identified ahead of time to ensure a smooth exit. Good fractional finance professionals will make your business resilient and attractive to potential buyers or investors.

4. Streamlined Operations:

By reviewing your business’ financial process, fractional finance experts can enhance efficiency and reduce costs. This will not only add value to your business, but it will also make the exit process easier for you and more appealing to investors or buyers.

When Should You Consider Fractional Finance Experts?

Businesses at every stage can benefit hugely from utilising an FD, FC or FM, so it’s never too early (but make sure it’s not too late)!

  • Craig Buchan

    Craig Buchan specialises in placing fractional finance professionals in businesses of various sizes, ensuring tailored financial expertise for optimal performance and growth.