Getting Exit-Ready
The challenge was clear. The Franklin Room’s operations were thriving, but like many founder-led businesses focused on growth, the financial recordkeeping hadn’t kept pace. Mike brought us in with a simple directive: “Make sure things are done right.”
When buyers started asking questions, we had immediate answers. Function had everything documented and organized in a way that showed we were a professional operation. It made the whole diligence process smoother and gave buyers confidence we knew what we were doing.
We started by rebuilding The Franklin Room’s books from the ground up–reconstructing the financial history in a way that would stand up to the kind of diligence Mike conducts on his own investments. From loan schedules to pandemic-era ERC filings, every line item needed documentation, context, and support.
Bridging Operations and Finance
We also coordinated between The Franklin Room’s operations team and its tax accountants–organizing data and answering questions proactively so Mike and his team could stay focused on running the restaurant while ensuring the accountants had what they needed.
Surviving Due Diligence
That preparation paid off. The sale went through two full rounds of diligence, and we were prepared every step of the way. Clean financials, organized reconciliations, and a well-structured data room gave buyers confidence to move forward quickly. turned potential roadblocks into easy checkmarks.
When buyers started asking questions, we had immediate answers. Function had everything documented and organized in a way that showed we were a professional operation. It made the whole diligence process smoother and gave buyers confidence we knew what we were doing.
By the time buyers dug in, The Franklin Room looked like what it truly was: a well-run business with numbers you could trust. Books were current, every balance was defensible, and reporting reflected real restaurant economics. The financials accelerated the deal instead of slowing it down.
The Entrepreneurial Discipline
For Mike, it was another example of the discipline that defines his career as a serial entrepreneur and investor: build a strong brand, professionalize the back office, de-risk the sale, and reinvest the proceeds into what’s next—whether that’s backing other founders through Venture Forward Capital or building his next venture.
The Takeaway
The lesson for other operators is simple: don’t wait until you’re ready to sell to get your house in order. Whether you’re running a restaurant, a SaaS product, or a services firm, clean books and clear reporting aren’t just paperwork, they’re what turn a good business into a sellable one.
Great food and service made The Franklin Room successful. But proper financials made it sellable, giving Mike the freedom to focus on what he does best: spotting and backing the next great opportunity.
If this story resonates with you, check out Function to see how we help founders get investor-ready and exit on their terms.
