by Rob Joseph, Director, BeaconCFO Plus
Understanding the Forward-Thinking CFO
In 2019, a survey by Deloitte—Role of the CFO, Private Equity—reported the turnover rate for a private equity CFO is greater than 80 percent. A private equity firm will assess the best interests of its company and investors when deciding whether or not to replace their CFO—and this usually comes down to the basics.
The report says: “There are two main ways you can fall short in the role as CFO in a private equity-backed company: If you fail to get the basics right or if you are unable to act as a business partner and leverage strategic insights.”
Getting the basics right—that was the “most repeated and stressed aspect in the survey for CFOs, CEOs, and private equity professionals.” But what are the basics for a private equity CFO?
A successful private equity CFO will…
- Know their role. Most failures occur because the individual did not meet expectations—and likely didn’t understand their role. Because of the demands of the job, the CFO should regularly initiate open conversations with operating partners.
- Establish repeatable and predictable behaviors. After implementing defined and measurable goals, they will put critical systems and processes in place for your firm that can be replicated for results.
- Guide strategic operations. Many rely on the CFO to serve as a strategic partner. They should support and guide the development of organizational structures and operations to achieve control and efficiency.
Our fractional CFOs are experienced, confident, and agile: This positions them to step into the role of private equity CFO for your business. Our CFOs understand that they may need to wear many hats—human resources, IT, operations, supply chain, and so on—and are well prepared to do so. Our goal is to position your private equity firm for greater efficiency and success.
We invite you to learn more about what we can do for you. Reach out to us to request a complimentary one-hour consultation with one of our CFOs and learn about how our experienced private equity CFOs can serve as your partner.