Let’s drill down on the specific responsibilities, skills, and benefits of the role. These may include:
- Detailed financial research, analysis, and strategy
- Risk management
- Periodic operating and financial reports
- Facilitation and insight during mergers & acquisitions
- Internal controls to prevent fraud
- Negotiating more favorable terms with suppliers, vendors, and insurers
- Assuring compliance with all financial regulations
- Minimizing tax liabilities
- Scaling finances across multiple rooftops
- Building relationships with lenders and other funding sources
- Improving profitability and cash flow
The CFO can identify the financial strengths and weaknesses of your organization. This lets you plan ways to further improve the performance of the profitable elements (and stop the bleeding of the unprofitable ones).
When searching for a CFO, automotive dealership experience is an enormous plus. The many unique aspects of our industry require knowledge that can only be acquired from hands-on experience in the business.
If you have an in-house CFO, they can be a valuable member of your team during the acquisition process. The CFO’s financial knowledge can greatly facilitate the acquisition process.
At DCG Acquisitions, we perform our own comprehensive due diligence on any transaction. If you’re working this us and you don’t have an in-house CFO, we’re happy to provide that strategic financial eye.
It starts with the identification of potential targets, which the CFO can analyze and qualify. They can also take the lead on your team’s due diligence and other financial steps when assessing a potential acquisition. The CFO has the knowledge to uncover any financial red flags and ask the tough questions if issues are revealed in the acquisition target’s books.
They can help determine whether a particular acquisition will enhance your business’s profits without undue risk. Your CFO may also have input into how the deal is structured, keeping the business’ best interests in mind. When the CFO can say that such a deal makes financial sense, it reinforces the CEO’s strategic approach to the acquisition, and makes it much more likely that the rest of the deal will proceed smoothly to a positive conclusion.
In today’s M&A environment of high valuations and fast-moving transactions, a bad deal structure can cost a dealership millions of dollars. The CFO is there to support a successful outcome.