Rutherford Cross recently ran another instalment in the Interim CFO Roundtable event series, this time in partnership with Interpath Advisory. We were delighted to have Tom Rawlinson, Director and Alan Flower, Managing Director leading the conversation, exploring ‘exit readiness’ for a business. Rutherford Cross Director, Derek Lauder, provides an overview of the event below.
We were joined by twelve CFOs, incorporating a mixture of interim, fractional and permanent CFOs from the Scottish market from a range of sectors including Tech, Construction, Financial Services, Corporate Finance, Manufacturing, Public & Not for Profit, and Energy. These CFOs have worked in Scotland and the UK, but also internationally including Hong Kong, Singapore and Australia.
After introductions were made, Alan and Tom introduced the services of Interpath Advisory which are wide-ranging: M&A Advisory, Transaction Services, Restructuring, Debt Advisory, Valuations and Tax. Tom then led the discussion on exit readiness for a business and related it to the role of the interim CFO (and also the permanent CFO).
Exit readiness should be considered 2-3 years in advance of the exit, incorporating a focus on value add programmes as well as preparing for any diligence and scrutiny the business will be put under by prospective buyers in due course.
The ‘5 Core Pillars of Exit Readiness’ that Interpath follow are:
- Strategy
- Financial and management reporting
- Enterprise value drivers
- EV to equity considerations
- Robust financial modelling
The key components of a successful exit include:
- A clear understanding of who the buyer is
- Clearly defined parameters of the transaction
- Confirming you have the capacity and knowledge to complete the transaction
- Whether you have the key management and personnel aligned to the eventual end objective
After a short Q&A, the session came to a close. Many thanks to Tom and Alan for delivering their presentation, it was hugely insightful. If you are interested in the services of Interpath Advisory please get in touch with either [email protected] or [email protected].
If you have an enquiry about interim CFO opportunities or availability, please contact [email protected].
