CFO Consulting Partners Helps Family Office Navigate M&A Risk and Structure a Smarter Acquisition

CFO Consulting Partners Helps Family Office Navigate M&A Risk and Structure a Smarter Acquisition

M&A and liquidity events put intense pressure on the finance function. Sellers face leadership gaps, tight timelines, and critical details—like working capital adjustments, tax exposure, and audit readiness—that can derail a deal if mishandled.​

CFO Consulting Partners steps in to steady the operation and guide strategy. We take on day-to-day finance leadership, help evaluate options, and manage pre- and post-close financial obligations. We also work alongside legal and tax advisors to keep the transaction on track—so the deal gets done cleanly, and the business is positioned for what’s next.

 

 

The Challenge

A new Family Office engaged CFO Consulting Partners (CFOCP) to build its finance function. Mid-engagement, the client spotted a chance to buy a young but promising social media consultancy. The target had weak financial controls and no CFO, with bookkeeping spread across vendors. Lacking an internal M&A team, the Family Office relied on CFOCP for a Quality of Earnings review and deal support.​

The Solution

CFOCP analyzed revenue streams and expenses to clarify how money flowed through the business. While the purchase price wasn’t tied to earnings, they still provided an adjusted EBITDA analysis—removing one-time costs and owner expenses—to gauge underlying financial health. The Quality of Earnings review included a proof of cash analysis, a review of the business model and customer revenue, a tax review, and an assessment of HR and contractor records. CFOCP flagged issues such as inconsistent revenue recognition, potential state tax exposure, and misclassified workers, and incorporated these concerns into the deal structure. As part of that structure, they set 60% of the purchase price to be paid over a five-year earnout and modeled different scenarios to advise on payment terms and logistics.​

The Outcome

By working with CFOCP to flag compliance and tax risks and structure performance-based terms, the Family Office avoided hidden liabilities, ensured cash was only released upon actual results, and navigated negotiations with accurate data in hand. In the end, they closed the deal smoothly, with clear schedules, working capital targets, and accurate funds flow mapping.

​Wants to find out more ways to navigate M&A and liquidity challenges, please contact:

Joseph VonEhr, Director

Email: jvonehr@cfoconsultingpartners.com

M: 203.349.2076 x710