Deals are often contentious. You have a seller who’s looking to get as much money as they can and looking to keep as much control as they can. You have an acquirer or an investor who’s looking to get the best deal possible. Then the deal closes, and now you have two people who are just contentious entering into a familial relationship.
A CFO now has to be that bridge. The CFO has to be honest and open and explain to both parties, build trust with both parties by saying to the seller, “This is why the private equity is looking for this. This is the benefit of what we’re trying to do. They’re not asking for it just for the sake of asking for it.”
And they also have to go to the private equity and say, “This is what’s capable right now. We may not be able to offer everything you’re looking for today, but we’re gonna build to that.” That type of communication builds trust amongst both parties. When you’ve done that, then the company can really grow and truly create new value.