In the realm of exit planning, assembling a skilled advisory team is essential. But what if one of those advisors could work even more closely with your client, acting as a strategic insider focused on value creation? That's exactly what happened when FocusCFO, a leading provider of Fractional CFO services, partnered with Jax Kar Wash to navigate a complex exit.
Jax Kar Wash, a multi-generational family business, was enjoying solid growth. FocusCFO joined the Jax Kar Wash team as a fractional CFO, with the goal of providing support in the value acceleration phase. FocusCFO stepped in, not as an external advisor, but as an Embedded CEPA and Fractional CFO. This meant they worked side-by-side with Jax Kar Wash's leadership team, deeply integrating into the company's operations and helping to help the Jax team increase earnings and improve operations to achieve their target business value.
However, when a competitor's IPO signaled that Jax could potentially get their target value now, the company recognized the need for expert guidance to shift from "growth mode" to "deal mode."
From crafting the Confidential Information Memorandum (CIM), to navigating due diligence, they ensured the company was ready to shine.
The deal structure benefited all stakeholders, from cash payouts for non-operating family members to continued involvement for the operating generation.
Jax Kar Wash found a buyer aligned with their values, allowing the business to thrive under the next generation.
As the embedded CEPA, the Fractional CFO worked closely to coordinate work between Jax’s leadership and the advisory team, including the Investment Banker, Transactional Attorney, CPA/Tax Planner, and the Wealth Manager.
Most exit planning advisors offer valuable guidance, but few can dedicate the time and resources required to help clients actively build value and prepare for a transition. An embedded Fractional CFO, however, fills this critical role. As the Embedded CEPA they provide ongoing, hands-on support in areas like:
FocusCFO’s Embedded CEPA / Embedded Fractional CFO model, as demonstrated with Jax Kar Wash, empowers clients to achieve their desired outcomes and leave a lasting legacy. Download the full Jax Kar Wash case study.
Traditional exit advisory teams often operate in an "orbit" around the business owner, meeting periodically but not fully immersed in day-to-day operations. An embedded CEPA, on the other hand, becomes part of the executive leadership team, working directly alongside the owner and internal stakeholders.
An Embedded CEPA is the advisory team’s ‘boots on the ground,’ helping to keep focus on transformative value acceleration initiatives in the years leading up to the exit. This fosters deeper collaboration and allows for a more agile response to challenges and opportunities as they arise.
At FocusCFO, our mission is to help entrepreneurs build sustainable, transferable business value. Our embedded CEPA / Embedded Fractional CFOs work with business leadership and external advisors to create the best possible exit outcome for clients.
Are you a CEPA looking to provide even greater value to your clients? Consider the power of an embedded Fractional CFO and reach out today. We're better together in the pursuit of successful business transitions.