The Role of a CFO in an Exit Process

Sapphire CFO Solutions
Jun 30
3 min read

By Sapphire CFO Solutions

Whether it’s a strategic acquisition, private equity deal, or IPO, a successful exit is one of the most significant milestones for any company. It’s also one of the most complex. Amid the legal, operational, and financial choreography required, one role stands out as mission-critical: the Chief Financial Officer.

At Sapphire CFO Solutions, we’ve led companies through every stage of the exit lifecycle. Our view is clear: when a CFO is fully engaged early in the process, they don’t just protect value - they unlock it.

1. Setting the Foundation Before the Exit

An exit doesn’t begin when the term sheet arrives. It starts months (often years) before, through intentional planning, clean financials, and strategic foresight.

A CFO lays the groundwork by:

Ensuring audit-ready financials: Historical statements must be GAAP-compliant and reconciled. Discrepancies or late close processes can derail deals or reduce valuation.
Building forecasting credibility: A buyer will scrutinize your projections. CFOs provide defensible models tied to operational levers, not wishful thinking.
Identifying red flags: From cap table inconsistencies to revenue recognition gaps, a seasoned CFO spots and resolves issues proactively.

2. Driving Strategic Readiness and Positioning

Buyers buy stories, but they pay for systems. A CFO translates the founder’s vision into financial narratives that resonate with acquirers or investors.

Key roles include:

Crafting the equity story: What are your key value drivers? Where is your growth coming from? A CFO distills the numbers into a compelling strategic narrative.
Packaging KPIs and metrics: Unit economics, retention, LTV:CAC ratios—buyers want fast insight into performance. Your CFO ensures that data is investor-grade.
Shaping deal structure: Whether it’s cash vs. equity, earn-outs, or escrow terms, the CFO models scenarios and partners with legal to shape terms that protect shareholder interests.

3. Leading the Diligence Process

Due diligence is where deals go to live or die. A CFO is the quarterback of this phase, owning data integrity, timeline control, and stakeholder coordination.

Responsibilities include:

Managing the data room: From financials and customer contracts to tax filings and board minutes, the CFO ensures the right documents are available and accurate.
Responding to buyer requests: Diligence often brings a flurry of questions and follow-ups. A CFO ensures responses are timely, thorough, and aligned with the company’s narrative.
Maintaining calm under pressure: Deals get emotional. A CFO provides stability—anticipating concerns, troubleshooting issues, and bridging founder-buyer communication gaps.

4. Maximizing Value and Navigating Close

The final stretch of an exit is about optimizing outcomes while minimizing surprises. A CFO leads this phase with precision.

Key contributions:

Negotiating working capital and adjustments: Missteps here can result in value leakage. CFOs model and defend the company’s position.
Facilitating third-party relationships: From bankers and accountants to legal and tax advisors, the CFO keeps the ecosystem aligned and moving.
Preparing for life post-close: Whether it's earn-out tracking, integration planning, or shareholder distributions, the CFO ensures a seamless transition.

Why It Matters

Buyers and investors don’t just look at revenue and EBITDA. They assess operational maturity, risk, and the team’s ability to execute. The CFO isn’t just a number-cruncher - they’re a credibility anchor, risk mitigator, and value maximizer.

At Sapphire CFO Solutions, we’ve supported founders through exits ranging from strategic M&A to private equity recapitalizations. We know the stakes, and we know how to win them.

Final Thought: Be Exit Ready Before You Think You Need to Be

Waiting until you’re “ready to sell” is waiting too long. The best exits are engineered well in advance. They reflect disciplined financial leadership, operational rigor, and strategic clarity -

hallmarks of a great CFO.