Case Study: Strengthening Finance to Maximize Exit Value

Preparing for a sale requires more than getting through due diligence. When a nationally recognized advertising agency entered the sale process, it needed experienced financial leadership to strengthen reporting, improve key finance processes and help position the business for a successful transaction. An interim CFO joined the existing CFO and accounting team to help prepare the organization for diligence and maximize value at exit.

The Challenge

The company needed to strengthen its financial foundation while navigating an active sale process.

With due diligence ahead, leadership needed greater clarity and consistency across the company’s financial reporting. The organization operated across five companies, creating additional complexity as the team worked to establish a clear view of profitability and prepare financial information for external review.

The month-end close process also took more than three weeks, limiting the speed at which leadership could access accurate financial information. At the same time, the company needed an experienced finance leader who could work alongside its existing team and coordinate effectively with executives and external parties throughout the transaction.

The objective was not simply to prepare for diligence. It was to strengthen the finance function, address issues that could affect transaction value and help the organization enter the sale process from a stronger position.

Our Approach

Smith + Howard combined experienced financial leadership with targeted process and reporting improvements.

Working alongside the company’s CFO and accounting team, an interim CFO provided transaction leadership and served as a liaison between internal executives and external parties. This helped create a more efficient flow of information throughout the diligence process.

The team strengthened financial reporting by simplifying the chart of accounts and integrating reporting across the company’s five entities. We also clarified profitability and established a documented, defensible EBITDA position to support the Quality of Earnings process.

Beyond reporting, the team identified opportunities to improve the company’s financial position ahead of the transaction. This included aligning current liabilities with deferred revenue and addressing tax liabilities while successfully navigating an IRS audit.