How an Outsourced CFO Can Help Your New Acquisition
Newly acquired companies, particularly in the lower-middle market, often lack the financial and accounting sophistication investors expect and need.
These companies likely have limited financial resources on staff and do not have the experience to meet these new expectations. On the other side, investors need to focus on operations and executing their strategic plans for the company.
An outsourced CFO, like CFOx, can bridge the gap between you and your new acquisition to ensure the investment gets started on the right foot. A few key areas an outsourced CFO can help:
Clean Up the Books
Lower-middle market companies often have messy, mishandled books. An outsourced CFO can get them cleaned up to give you confidence that the numbers the company is reporting are accurate.
Implement Proper Accounting Policies and Procedures
By identifying and implementing accounting ‘best practices,’ your new acquisition will not only operate more efficiently, but also have the proper controls in place, so nothing slips through the cracks.
Develop Financial Reporting
An outsourced CFO can set up and develop proper financial reporting, so you know exactly what is happening with the business. Examples include a ‘Monthly Reporting Package’, weekly KPI reports, budgets, and lender compliance requirements.
Flexible and Cost-Effective
A full-time CFO might not make sense right away for all acquisitions, especially those tight on cash. An outsourced, part-time CFO can provide the ongoing financial leadership you need without the price tag or commitment of a full-time CFO.
You invested in this company because you have growth plans, and you need the financial and accounting capabilities to be able to support those plans. An outsourced CFO can make sure your acquisition’s financial infrastructure and systems are set up for its future growth.
If you would like to learn more about how CFOx can help your new acquisition, please schedule a free consultation via email (email@example.com) or by scheduling a call directly on our website homepage.