By Scott Webb, Managing Director of Strategic Financial Consulting
For many family- and founder-owned businesses, taking on their first round of institutional capital, often from a private equity firm, marks a major inflection point. While it can be a catalyst for growth and professionalization, it also introduces unfamiliar pressures, new stakeholders, and heightened reporting expectations. At LCG, we specialize in guiding companies through this critical transition to ensure a successful partnership for both the seller and the investor.
However, when private equity comes in, there’s suddenly an expectation for targets, regular tracking, and clear accountability, which can be a jarring transition. We’re here to share that it doesn’t have to be.
Managing a Delicate Transition
Founders are often emotionally invested in their business, and handing over a stake to outside investors can feel both empowering and vulnerable. Additionally, many founders have successfully grown their business doing things their way, sometimes without a professionalized or strategic finance function. However, new stakeholders, like private equity firms, need a clear and accurate understanding of the business to make strategic decisions and uphold financial covenants.
During this transitional phase, LCG steps in as a trusted advisor to help the seller present a credible, investor-ready narrative while ensuring the buyer gets the insight they need, without alienating the existing management team
Translating Imperfect Financials into Investor-Ready Insights
Since many founder-led businesses haven’t had to maintain institutional-grade financial reporting, we come in to work behind the scenes to decode the general ledger, clean up fragmented data, and create polished reporting packages that private equity firms can rely on. This includes:
- Creating clean, investor-facing narratives from operational chaos
- Delivering weekly KPI reports to provide real-time visibility into business performance
- Building dashboards and reporting tools that enhance financial clarity
Tools and Accountability That Drive Results
The job doesn’t stop at building reports. We implement the systems that allow leadership to stay on top of financial performance and covenant compliance, while helping them understand why it matters. This often includes:
- Monitoring leverage ratios and other key financial metrics to stay ahead of lender and investor requirements
- Standing up reporting tools and processes, then ensuring the team adopts and understands them
- Supporting quarterly covenant calculations and clarifying expectations around timing
A Trusted Partner on Both Sides of the Table
LCG is unique in that we are able to support both sides of the transaction. We guide the recent sellers and their C-management teams with empathy and hands-on support, while delivering the transparency and structure buyers need to drive value post-close.
For founder-led companies navigating their first institutional deal, LCG is more than just a consulting firm—we’re a translator, a bridge-builder, and an enabler of long-term success.
LCG’s Strategic Financial Consulting division provides tailored advisory services to private equity firms and family and founder-led businesses that address complex financial or operational challenges. For questions or to schedule a consultation, contact Scott Webb at [email protected].