Are you looking to exit?

Mike Henninger • May 26, 2025

Are you planning an exit?

Planning Your Business Exit: How a Fractional CFO Adds Value in the Final 12–36 Months


If you’re a business owner planning to exit your company within the next 1 to 3 years, congratulations! This is a major milestone, but make no mistake: Successful exits don’t happen by accident! Whether you're preparing for a sale, passing the torch to a successor, or merging with another company, your financial picture will be put under a microscope.



As fractional CFO’s, our job is to help you prepare your business for this scrutiny, to maximize its valuation, and create a smooth transition in the process. Here's how we help owners like you get ready for a successful exit.


1. Turning Financial Chaos into Clarity


Most businesses have some financial “dust” in the corners…old receivables, vague cost structures, or outdated reporting systems. A buyer/ investor will spot these issues immediately. You can clean house by:

  • Establishing accurate, current financial statements
  • Standardizing reporting and implementing accrual accounting (if needed)
  • Addressing revenue recognition or expense allocation issues

Value Add: A clean financial picture builds trust and speeds up due diligence can oftentimes increase perceived business value.


2. Increasing EBITDA and Improving Cash Flow


EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a key metric for business valuation. We perform a thorough analysis of your operations to:

  • Eliminate unnecessary expenses
  • Identify opportunities to improve margins
  • Restructure debt and vendor contracts to improve profitability
  • Increase working capital efficiency

Value Add: Every dollar of EBITDA increase can translate to $3–$7 (or more) in added enterprise value (depending on the industry).


3. Building a Forecast and Budget Framework


Buyers need a roadmap, not just a snapshot. A 12–36 month financial forecasts that aligns with your exit timeline should include:

  • Projected income statements, balance sheets, and cash flow statements
  • Scenario planning for various market conditions and deal outcomes
  • Capital expenditure and growth assumptions

Value Add: A clear growth story backed by sound financials can justify a premium valuation and reduce buyer skepticism.


4. Identifying and Reducing Owner Dependency


Many businesses are way too reliant on their owner. This can scare off buyers. You need to assess how dependent your business is on you and and find ways to:

  • Delegate/outsource critical tasks
  • Build dashboards and KPIs so others can manage and track performance
  • Establish operational processes and SOPs that allow the business to run independent of who is in charge

Value Add: Businesses that can run smoothly without the owner attract more buyers. Additionally, they can sell for higher multiples.


5. Preparing You for Due Diligence


When the time comes to open your books to a buyer, it’s go time. Prepare yourself for:

  • Pre-due diligence checklists
  • Document data room setup and document organization 
  • Stress-testing the numbers for consistency and defensibility
  • Coordination with your tax, legal, and M&A team of advisors

Value Add: Reduces surprises during diligence, this allows buyers to stay confident, so deals don’t fall apart.


6. Collaborating with You and Your Exit Team


You may be working with M&A advisors, CPAs, lawyers, and consultants. Having a  financial quarterback assists in:

  • Translating complex numbers into actionable insights for your advisors
  • Helping negotiate terms based on financial performance
  • Identifying post-sale tax strategies

Value Add: Ensures financials align with deal terms and support a tax-efficient exit.


Ready to Exit Smart?


Exiting your business is more than a transaction…it’s literally a transformation. The best exits happen when business owners plan ahead and partner with the right professionals.


A Fractional CFO becomes a key part of your transition team…focused on preparing your business for sale, maximizing value, and giving you the confidence to move forward.


If you're 12–36 months from an exit, now is the time to start. Let’s talk.


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Here’s how a fractional CFO can transform your business. 1. Cash Flow Mastery: The Foundation of Stability Cash flow isn’t just an accounting term; it’s the lifeblood of your business. Without a steady, predictable cash flow, even the most profitable business can quickly find itself in trouble. A fractional CFO’s job is to make sure cash is flowing smoothly and consistently—keeping operations running, covering payroll, managing debt, and making sure there’s always enough liquidity for strategic growth. They’ll dive into the numbers to help you understand where your money is coming from and, just as importantly, where it’s going. They'll set up systems to track receivables, payables, inventory, and more. With their expertise, they’ll ensure that cash flow is optimized, forecasted, and strategically managed so you can stay ahead of potential gaps and seize opportunities when they arise. Let’s face it: You can’t grow a business if you’re constantly worried about cash. A fractional CFO makes sure your business is not just surviving but thriving—setting you up to scale and increasing your chances of a profitable exit when the time comes. 2. Driving Revenue: Taking the Guesswork Out of Growth Growing your revenue is where the rubber meets the road, but it’s also where many small businesses hit a wall. You can’t just rely on random bursts of sales or hope that the market will favor you. You need a strategy—a smart, data-driven strategy to build sustainable growth. This is where your fractional CFO becomes invaluable. Utilizing deep financial insight, they’ll help you understand the levers that drive growth—whether it's optimizing your pricing, improving your sales funnel, or diversifying revenue streams. They’ll help you create solid financial models to forecast revenue, track key performance indicators, and make decisions based on hard data instead of intuition. It’s all about taking the guesswork out of growing your business. 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Whether it's tweaking your pricing strategy, adjusting supplier agreements, or improving your operating model, a fractional CFO will work to boost your profitability across the board. Profit is key, not just for keeping your business healthy, but for positioning yourself for a successful exit. Buyers or investors will want to see that your business is profitable and can maintain or increase that profitability after acquisition. A fractional CFO ensures you’re maximizing your profits in preparation for a sale, making your business more appealing to potential buyers. 4. Preparing for a Profitable Exit: Making Your Business Attractive to Buyers If you're thinking about selling your business down the line, you need to start preparing now . A successful exit doesn’t happen overnight, and a fractional CFO is the person you want in your corner to help you position your business for the highest possible return. They’re the ones who’ll guide you through the entire exit strategy process, from preparing your financials to managing negotiations. They’ll ensure that your business is running at its peak with well-documented financial records, a system to track KPI’s, strong cash flow, and optimized profit margins. They’ll also help you plan for the tax implications of the sale, ensuring that you get to keep as much of the sale price as possible.  Most importantly, your fractional CFO can assist in crafting a growth story that makes your business irresistible to potential buyers. They’ll help you showcase your business's strengths, growth potential, and profitability, which is what buyers are looking for. They’ll also identify any areas of concern that could hurt the sale price, allowing you to address them before you enter the market. 5. Strategic Guidance at a Fraction of the Cost One of the most powerful aspects of having an “on demand” fractional CFO is that you get all the expertise of a seasoned financial leader without the full-time salary . For many small businesses, hiring a full-time CFO is simply not feasible, but a fractional CFO gives you access to that level of expertise at a fraction of the cost. Think of them as a strategic partner who can provide high-level guidance and bring clarity to your financial decisions. Whether you’re making day-to-day financial choices or planning for long-term growth, having a fractional CFO on board means that you have someone who’s constantly looking out for your best financial interests. Conclusion: The Bottom Line The path to a profitable exit is paved with solid financial decisions, and a fractional CFO is the partner you need to make those decisions with confidence. 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