Finance
Six months preparing the numbers, capital structure and growth story so the company could enter due diligence without having to explain itself after the fact.
48 daysDue diligence time
OVERVIEW
CONTEXT
Investors were interested, but every time they asked for a number they got a different version depending on who answered.
The company was growing its user base well and already had recurring revenue, but its data was scattered across three systems: tax accounting, the sales team's internal tracker and the product dashboard. Three sources gave three different revenue figures, far enough apart for any serious investor to raise an eyebrow.
The ownership structure wasn't ready either: the founders' shares, a planned ESOP and the stake of a former partner had not been documented clearly. Problems like these don't ruin a first meeting — they ruin a deal in week six of due diligence.
SOLUTION
Aligning the definitions of revenue, active customers and contribution margin across the three systems.
Finalizing the shareholder register, options and past commitments in writing before opening the data room.
Conservative, base and accelerated plans, each tied to assumptions that can be verified.
All legal documents, contracts and figures organized ahead of time by the categories investors usually ask about.
The pitch deck and the numbers say the same thing — including on the risks.
Meeting rules, veto rights and reporting lines agreed before investors come on board.
Every metric definition was reviewed, the three systems were reconciled and a single set of numbers was signed off by both the CFO and the CPO. In parallel, the legal file and ownership structure were cleaned up so that no item had to be explained verbally.
The financial model and the pitch deck were built on the same data source. The team rehearsed answers to the hardest questions before meeting investors. When due diligence began, most of the documents were already in the data room.
WHAT'S DIFFERENT
Fundraising doesn't start at the investor meeting — it starts with the quality of the numbers six months earlier.
Risks were put in the file from the start, instead of leaving the buyer to find them.
The advisor prepared and rehearsed; the team still did the talking in front of investors.
Every number in the plan traces back to operating data that actually happened.
The data room was completed before the round opened, not rushed together mid-diligence.
RESULTS
The hardest part wasn't meeting investors. The hardest part was the six months before, when we had to admit that our three reports didn't match.
At least two quarters before you plan to open the round. Cleaning up the numbers and the ownership structure almost always takes longer than expected.
No. Valuation is set by the market. Preparation only ensures the business doesn't lose points for reasons that could have been avoided.
It still works. In that case, part of the work is deciding the right time and criteria for hiring the first CFO.
Most of the value stays with the business: clean numbers, a clear ownership structure and a management reporting rhythm that can be reused next time.
A NEW JOURNEY STARTS HERE
A thirty-minute conversation is usually enough to name the bottleneck. The rest is designing a roadmap that fits your size and resources.
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