CFO Acquisition Preparation: From Numbers to Narrative in Mid-Market Deals

Introduction: Why CFOs Must Lead the Prep—Even Before a Deal Is in Sight

For many mid-market companies, acquisition is one of the paths often taken to scale or exit. Yet when the opportunity arises, few are fully prepared. This is where CFO acquisition preparation makes the difference; turning disorganized financials and vague narratives into compelling case for buyers.

From our experience supporting clients through acquisitions—and having led finance functions of strategic buyers—we’ve seen how the CFO’s office can be a powerful force in shaping deal success. This post offers practical steps CFOs can take to lay the groundwork well in advance of any transaction.

1. Financial Preparation: Get Your Books in Order

The Challenge:

Buyers scrutinize the financials. Inconsistent reporting, unresolved liabilities, or audit issues not only slow the process—they can materially affect valuation.

How CFOs Drive Readiness:

Reliable, GAAP-compliant reporting, clean audits, and a solid financial control environment build credibility with buyers and can directly impact the company’s purchase price and deal structure.

Key Actions:

• Reconcile accounts and ensure revenue recognition aligns with standards.

• Address liabilities like unresolved tax exposures or contingent obligations.

• Standardize reporting across all business units to facilitate comparisons.

• Resolve audit findings to secure a clean opinion.

Pitfall to Avoid:

Attempting cleanup only after buyer interest arises. Financial gaps or inconsistencies discovered during diligence often lead to value erosion or deal delays.

2. Operational Efficiency: Make It Easy to Scale or Integrate

The Challenge:

Buyers want confidence that the business can run smoothly without heroic effort from founders or key employees. Strategic buyers may also want to integrate quickly to realize synergies.

How CFOs Drive Readiness:

Finance can lead the charge in documenting key workflows, reducing manual dependencies, and helping the business present as scalable and integration-ready.

Key Actions:

• Map and document key operational processes (e.g., order-to-cash, procurement).

• Identify automation opportunities to increase margin and reduce reliance on individuals.

• Ensure key contracts (vendor, customer, employee) are current and transferable.

Pitfall to Avoid:

Relying on undocumented “tribal knowledge.” When key people leave post-deal, the absence of documentation becomes a risk to continuity—or integration success.

3. Strategic Positioning: Support the Value Narrative with Data

The Challenge:

Buyers are investing in future potential, but many companies fail to clearly communicate their growth story and differentiation.

How CFOs Drive Readiness:

While strategy may sit with the CEO or commercial leads, the finance organization plays a critical role in quantifying and validating the business case behind the vision.

Key Actions:

• Quantify customer retention, margin expansion, and market share growth.

• Ensure key assets—like IP, proprietary data, or internal systems—are protected and transferable.

• Help develop growth models that balance opportunity with credible assumptions.

  
  

Pitfall to Avoid:

Assuming the company’s value proposition is self-evident. Even if Finance isn’t driving the narrative, it must support and reinforce it with defensible metrics.

4. Managing Risks: Don’t Let Red Flags Derail the Deal

The Challenge:

Unresolved risks or unrealistic expectations can kill momentum during diligence.

How CFOs Drive Readiness:

Finance should lead the identification of potential deal blockers and proactively mitigate or disclose them. This includes preparing for black swan events that might otherwise blindside buyers.

Key Actions:

• Disclose issues early (e.g., litigation, customer concentration, compliance gaps).

• Run scenario analyses to model impacts of downside events.

• Benchmark against recent deals to ground valuation expectations.

• Focus forecasts on defensible, sustainable performance—not aggressive stretch goals.

  
  

Pitfall to Avoid:

Avoiding difficult conversations. Transparency builds trust, while omission or deflection invites skepticism—potentially affecting terms or timelines.

Conclusion: CFOs Set the Tone for Transaction Readiness

The Bottom Line:

Acquisition readiness isn't about predicting when a deal will happen—it's about building a company that stands up to scrutiny, scales with discipline, and communicates value clearly. Whether or not a transaction is in motion, CFOs who take ownership of this process position their companies—and themselves—for stronger outcomes.

Enjoyed this perspective? We share periodic insights like this through Kebla Insights — short, practical updates drawn from real work with finance and operations leaders. Subscribe here

The information provided on this blog is for general informational purposes only and should not be construed as professional advice. Please consult a qualified professional before making any decisions based on this information.