Updated · I need a Fractional CFO

Start exit preparation with the gaps in the evidence

A compelling sales narrative needs reliable financial support. If annual accounts, monthly reports and the forecast tell different stories, investigate the differences before sending information to a buyer. Preparation can begin before a sale timetable is fixed, especially where records or reporting need improvement.

Prioritise information that affects the buyer’s understanding: customer concentration, recurring versus one-off income, delivery costs, working capital and reliance on the owner. Good preparation does not guarantee a higher price or a completed transaction.

A practical financial readiness checklist

  • Reconcile management accounts to annual accounts and explain material adjustments.
  • Analyse revenue and margins by the categories relevant to the business.
  • Document proposed earnings adjustments with evidence and rationale.
  • Review debtor ageing, stock and other working capital movements.
  • Make forecast assumptions traceable to contracts, capacity or a stated management estimate.
  • Index financial schedules, agree document owners and maintain version control.
  • Assign responsibility for buyer questions while normal reporting continues.

Our management reporting support can address recurring information gaps before transaction pressure builds.

Example: owner costs and replacement costs

Assume an owner receives £120,000 a year and proposes adding all of it back to reported earnings. If the owner performs an essential role that would cost £90,000 to replace, the simplified potential difference is £30,000, not £120,000.

These invented figures ignore employment on-costs and other factors. The role, total replacement cost and proposed adjustment need evidence and buyer assessment. An adjustment is not automatically accepted because it increases earnings.

Apply the same discipline to exceptional expenses, related-party arrangements and changes in accounting policy. Distinguish facts, estimates and negotiation positions.

Prepare the financial data room and response process

Use a clear folder index, consistent period labels and an owner for each schedule. Keep source records linked to summaries so questions can be answered without rebuilding the analysis. Log what was shared, when it changed and why.

Agree confidentiality and access arrangements with your legal advisers. Sensitive customer, employee and commercial material should be shared through the agreed process. Use the website enquiry form only to start the conversation, not to upload transaction documents.

What exit preparation support can deliver

An agreed engagement can provide a readiness gap assessment, a prioritised action list, reconciled reporting schedules, an earnings adjustment register and a financial questions tracker. Responsibilities should be coordinated with your accountant, corporate finance adviser and lawyer.

This is finance preparation support. It does not promise buyer introductions, a sale price, a completion date or a formal vendor due diligence report. See financial due diligence support for the distinction between preparation and report requirements.

Tell us your broad timetable, reporting position and main concern. Scope and fees can then reflect the work needed. For broader transaction planning, explore M&A CFO support.

Your questions, answered.

How early should I prepare the financial information for a sale?

Begin when a sale becomes a realistic possibility, especially if reporting or records need improvement. The time required depends on the gaps and the transaction timetable.

Will this increase the value of my business?

No increase is promised. Preparation can make information clearer and help identify questions, but value and deal terms depend on the business, buyer and transaction.

Can you manage financial questions from a buyer?

An agreed scope can include coordinating financial information and responses. The owner and appointed advisers retain their respective decision-making and professional responsibilities.