Financial clarity before and during the deal
A transaction creates financial questions that ordinary monthly reporting may not answer. Buyers want to understand earnings, cash requirements, and potential risks. Sellers need to explain performance, support proposed adjustments, and understand how deal terms affect the outcome.
BP CFO Services helps clients organize the information, examine the financial questions, and work through the findings with the appropriate advisors.
Sell-side vs. buy-side
Sell-side
For sellers, support begins with understanding the financial story and identifying gaps before they become urgent buyer questions. We help organize records, review proposed earnings adjustments, evaluate financial aspects of the offer, and coordinate responses during diligence.
The goal is to give ownership clear information and consistent financial guidance throughout the process.
Buy-side
For buyers, support focuses on understanding the target’s reported performance and the financial assumptions behind the opportunity. Depending on scope, the work may examine customer concentration, revenue and margin trends, earnings adjustments, working capital, and cash requirements.
Findings help inform valuation discussions, follow-up questions, and planning for the acquired business.
Working capital adjustments, debt-related deductions, payment timing, and contingent consideration can affect the seller’s proceeds and the buyer’s funding needs. Review the calculations and assumptions with your financial and legal advisors before agreeing to the terms.
Plan the financial transition
A completed transaction creates new reporting and coordination needs. Define who owns accounting activities, how financial information will be transferred, and which reporting changes are required.
Where included in scope, we help coordinate account mapping, reporting responsibilities, close procedures, and the initial post-close finance priorities.
What good looks like
- Significant financial figures can be traced to supporting records.
- Proposed earnings adjustments have documented calculations and explanations.
- Financial questions and outstanding requests have owners and deadlines.
- Management understands the financial implications of the proposed terms.
- Advisors receive consistent information and timely responses.
- Closing and post-close financial responsibilities are clearly assigned.
Mistakes to avoid
- Waiting until diligence begins to organize financial records.
- Presenting earnings adjustments without adequate support.
- Focusing on headline price without understanding other financial terms.
- Providing inconsistent information to different parties.
- Leaving financial requests without an owner or deadline.
- Failing to plan the handover of accounting and reporting responsibilities.
Whether you are buying or selling, financial guidance should help you understand the opportunity, address questions, and make informed decisions. BP CFO Services provides analysis and coordination tailored to the transaction and the people responsible for completing it.