In regard to liquidity event execution, a F-CFO will act as an important representative of the selling company, while performing important functions. Specifically, a F-CFO will facilitate or handle all of the financial due diligence tasks and responsibilities thereby relieving the management team from this burden. Notably, this will include assisting with the buyer’s “quality of earnings” review, and possibly an assessment of the seller’s auditability, via directly interacting with the buyer’s CPA. Further, the F-CFO will engineer a favorable purchase price adjustment mechanism related to working capital, provide tax advisement related to possible gross-up calculations, suggest parameters associated with representations and warranties, and even opine as to whether the owner should “roll” some equity into the buyer.

 In summary, F-CFO’s are underutilized assets in regard to both assisting with normalized matters, and exit preparation and execution. Their contributions upgrade any selling company, and many times function as “transformative catalysts.” As such, all trusted advisors to owners and companies should understand this value and proactively involve F-CFO’s on behalf of their clients.