Stories Win Interest. FDs Win Deals.

For most owners, selling a business will be the biggest financial transaction of their lives.

It reflects years of work, risk and sacrifice.

Yet many businesses start that process without experienced financial leadership in place.

The usual sequence looks like this:

1. Decide to sell
2. Appoint a broker or corporate finance adviser
3. Go to market
4. Hope the numbers survive scrutiny

In reality, the order should usually be:

1. Consider selling
2. Appoint an FD
3. Appoint the broker
4. Sell the business
5. Trust that the numbers will survive scrutiny

It is a bit like putting a house on the market before tidying up, cutting the lawn and fixing the leaky tap. You may still attract interest, but avoidable issues quickly become part of the buyer’s assessment.

Stories win interest. FDs win deals.

The Problem Is Rarely the Business

Most owner-managed businesses are fundamentally good businesses.

The issue is not performance.

It is preparedness.

Because once a sale process begins, the business is no longer judged on ambition or intent. It is judged on evidence.

And that evidence is almost always financial.

Buyers are looking to understand:

• Quality and sustainability of earnings
• Cash generation and conversion
• Working capital dynamics
• Margin consistency
• Customer concentration risk
• Forecast credibility
• Accuracy and discipline of reporting

Without clear, consistent answers, uncertainty starts to build.

And uncertainty has a direct cost in a transaction.

Stories win interest. FDs win deals.

I Saw This First-Hand Recently

I saw this recently with a business that had tried and failed to sell the previous year.

After that failed process, I was brought in to strengthen reporting, controls and commercial information.

A year later, we were back around the table with the same buyers.

They were asked why the deal was progressing this time. Their answer was simple:

“Last time we didn’t trust your financial information. This time we do.”

That was the difference.

The business had not fundamentally changed — but the credibility of the numbers had.

Stories win interest. FDs win deals.

Due Diligence Can Quickly Spiral

In my experience, difficult transactions are rarely caused by poor businesses.

They are caused by poor preparation.

And due diligence rarely breaks in one place.

It escalates.

One weak answer creates more questions.

Those questions create further follow-ups.

Before long, the process shifts from confidence to scrutiny, and from scrutiny to doubt.

Why does this not reconcile? Why has this margin moved? Why is this adjustment included? Why doesn’t the forecast tie out? Why is this balance sheet item unresolved?

It becomes what I often describe as The Sorcerer’s Apprentice effect, one loose thread turns into a flood of questions.

And at that point, momentum is lost.

Stories win interest. FDs win deals.

A Good FD Changes the Outcome

A strong FD does far more than produce numbers.

They shape how the business is understood in a transaction.

Because buyers are not just buying performance to date.

They are buying future confidence.

A good FD ensures:

• Earnings are explained, not just reported
• Margins are understood and defensible
• Cash conversion is visible and predictable
• Forecasts are grounded and testable
• Risks are identified early and managed properly
• The financial narrative holds up under scrutiny

I have seen strong growth stories lose credibility quickly when the financial underpinning is weak.

Because once confidence is gone, it is difficult to rebuild.

Stories win interest. FDs win deals.

The Most Expensive FD Is the One You Didn’t Hire

Some owners see an FD as an optional cost ahead of a sale.

In reality, it is often one of the highest-return decisions in the entire process.

Because poor preparation typically results in:

• Lower valuation
• Slower transactions
• Increased friction in diligence
• Greater deal fatigue
• Reduced buyer confidence

Whereas well-prepared businesses tend to achieve:

• Stronger valuations
• Smoother processes
• Faster completion
• Better buyer engagement
• Less stress on management teams

Good deals feel organised.

Not because they are simple.

But because the numbers hold up.

That rarely happens by accident.

It usually comes from strong financial leadership long before the business goes to market.

So if you are thinking about selling, the sequence should probably be:

Step 1 — Appoint an FD

Step 2 — Appoint the broker

Step 3 — Sell the business

In that order.

Because stories win interest.

FDs win deals.