Question 1

What does Zenith do?

Accepted Answer

Zenith is a transaction advisory and CFO services firm. We prepare growth-stage companies for capital events — equity raises, debt raises, and M&A exits — and match founders with industry-specific fractional CFOs within 24 hours. We serve growth-stage companies across the United States, with specialist depth in life sciences at $2–20M ARR.

Question 2

What is transaction readiness?

Accepted Answer

Transaction readiness means your financials would survive institutional due diligence today — clean three-statement models, a defensible cap table, documented revenue recognition, and audit-ready books. Companies that fix diligence issues before going to market close rounds materially faster and on better terms than those who scramble after a term sheet arrives.

Question 3

When should a startup hire a fractional CFO?

Accepted Answer

Typically between $1M and $20M in revenue — when financial decisions (pricing, hiring, fundraising, runway) exceed what a bookkeeper or controller can own, but a $300K+ full-time CFO isn't justified. The strongest trigger is a capital event on the 6–18 month horizon: a raise, a debt facility, or an exit conversation.

Question 4

How much does a fractional CFO cost compared to a full-time CFO?

Accepted Answer

A full-time CFO at a growth-stage company costs $250K–$450K per year plus equity. A fractional CFO typically runs 20–40% of that for the strategic layer that actually moves outcomes — modeling, fundraising support, board reporting, and transaction preparation.

Question 5

What financial documents do investors ask for in due diligence?

Accepted Answer

A three-statement financial model, historical monthly P&L, revenue by customer (cohorts and concentration), cap table with option pool detail, key contracts, burn and runway analysis, and metric definitions (ARR, churn, CAC, LTV). Gaps or inconsistencies in any of these extend diligence by weeks and erode terms.

Question 6

What is a CIM (Confidential Information Memorandum)?

Accepted Answer

A CIM is the 50–150 page document a sell-side advisor prepares to present a company to potential buyers — covering the business model, financials, market, team, and growth story. It follows a teaser and NDA in the M&A process and typically takes 2–8 weeks to prepare well.

Question 7

How long does M&A due diligence take?

Accepted Answer

Typically 6–12 weeks for a lower-middle-market deal — longer if financials are messy. The single biggest driver of timeline is preparation: companies with clean data rooms and reconciled numbers compress diligence; companies that rebuild financials mid-process stall and invite price renegotiation.

Question 8

What makes life sciences transactions different?

Accepted Answer

Life sciences diligence adds layers most generalist advisors miss: milestone-based revenue recognition, grant accounting, clinical-stage burn profiles, licensing and royalty structures, and regulatory timelines that drive valuation. Zenith's life sciences practice focuses on companies at $2–20M ARR preparing for a raise or exit.

Question 9

What is the difference between transaction advisory and fractional CFO services?

Accepted Answer

Transaction advisory is event-driven: preparing for and executing a specific raise, debt facility, or exit. Fractional CFO service is ongoing: monthly strategic finance leadership. Most Zenith clients start with a transaction and keep the CFO layer after the event.

Question 10

How does Zenith match CFOs to companies?

Accepted Answer

By industry and stage — a CFO who has built what you're building, in your sector, at your revenue stage, matched within 24 hours. Our bench includes operators with $200M IPO M&A experience and the former CFO of CoreWeave ($23B IPO).

Transaction advisory & fractional CFO, answered.

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