The CFO evaluates all aspects of a middle market company’s business plan to ensure that it provides the optimal financial return on investments (ROI).  Of particular importance is a CFO’s input on key strategic decisions such as mergers & acquisitions, lending agreements, CAPEX investments,  IPO’s and stock offerings, strategic alliances and divestures.  The CFO’s objective in this capacity is to:

  • Support transactions that support the company’s strategy and educate management of drivers of valuation;
  • Define business plans that link the strategy for valuation with key goals and objectives;
  • Assess impact of transactions on debt and equity structure and cash flow;
  • Perform financial analysis and due diligence on all strategic potential transactions;
  • Evaluate and select external advisors (investment bankers, auditors, attorneys);
  • Lead or support the post-transaction integration/transition with the company

While the importance of having a strong CFO is often underestimated in regard to some of the other components of the role, nearly all middle market CEO’s understand the advantage of having a strong CFO in these situations which are often financially complex and significant enough to be considered make-or-break deals for a middle market business.

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