The Role of Your Accountant in the Sale of Your Business

About the Episode

What is a fractional CFO? How can they help grow a business? Can they help sell a business? Get all the details on this growing position in the middle market with fractional CFO John Hannum. He offers a wide-ranging discussion with insights into how a fractional CFO can fit into a company’s growth plans, the role of different financial team members, how they play a role in preparing a company for sale, and how sellers can avoid the most common mistakes in dealing with finances during the M&A process. 

“If you don’t focus on having good financial books, you’re not going to be able to use those pieces of information to make good decisions.”

John Hannum

What You’ll Learn

  • Details on the Fractional CFO role – John discusses the relationship between owner and accountant, the benefits of having a fractional CFO, and the importance of the strategy component. 
  • Financial Team –  What’s the relationship between a bookkeeper, a controller, a CFO, and a fractional CFO? Learn how this impacts the development of a company and when to grow from bookkeeper to controller to CFO.
  • Seller’s Mistakes – Learn about the biggest mistakes sellers make and how not having your financial paperwork in order leaves value on the table. 
  • How the Company’s Run – The financial books tell more than just the numbers – they can tell how well-run a company is and what the owner values most in the business. 
  • Gaining Value and Preparing to Sell – Gain insights into how good financial records can make a company more profitable on a daily basis, more valuable, and ready to sell at any time.

Topics Covered

What is the biggest mistake sellers make when it comes to their financial team? [3:04]
Is there a difference between running a company versus preparing financials for an exit? [8:47] 
How do you know if your accountant is doing a good job? [10:53]
What’s the difference between a controller and a CFO? What are their different roles? [17:11]
What is the role of a fractional CFO? How does a fractional CFO fit into a company? [23:50]
What role does the seller’s financial team play during the M&A process? [33:10]
What information is going to be used in the due diligence process? [40:21]
If you are selling your company and you have clean books, do you still need to do a QoE? [44:01] 
When preparing a company for sale, is there anything different than having clean books? [50:16]

Want More? Related Resources: 

Meet Our Guest

John Hannum

John Hannum

CEO, PPS Solutions PC | Los Angeles, California

John Hannum is the founder and CEO of PPS Solutions PC, which provides Fractional CFO services, full-service accounting and finance packages, and diligence services to growing businesses and new or aspiring entrepreneurs. With a 25+ year background at the top of the finance organization for companies with incredible growth trajectories, he now focuses on providing the financial firepower normally available only to larger successful companies to smaller growing businesses that need it most.

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