Whether cash flow, new market entry, or maximizing value prior to a potential transaction or exit, an Interim CFO can lead turnaround or growth
“Everything in the company in one way or another ties back to the CFO,” observed Astrid Rapp, expert Interim CFO. Because finance is the lifeblood of every company, Rapp says that when a company engages an interim CFO, they don’t just get a CFO, but rather a confidant who can help with other important decisions throughout the company.
The Association of Interim Executives is home to Fractional and Interim CFOs that can instantly be deployed.
We needed help because we grew beyond the capacity to understand our company’s financial statements. Our Interim CFO asked questions we would have never asked ourselves, so it turned out to be a great learning experience. I wish I had done something like this sooner.
6 Reasons for Calling in an Interim CFO
Prepare for Exit or Transaction
An Interim CFO is the greatest insurance policy a company owner could have when going through a transaction to sell, refinance, or acquire someone else. The CFO is oxygen to the transaction. Especially if they haven’t had to report to outside investors, a sale or merger may require a whole new level of financial reporting and accountability that most companies are not ready for.
Distressed Financial Situations
When a company is out of covenant on loans or is experiencing falling revenue, an Interim CFO experienced in turnarounds can bring the expertise to instantly address the crisis. No business wants to find itself having to renegotiate with creditors, go through recapitalization or even liquidation, but an experienced CFO who’s been there before can help.
Cost Accounting Discipline
Are you making or losing money? An Interim Chief Financial Officer can help an owner get their hands around the business, and put good financial systems and accounting policy process procedure into place. No matter what type of company you own, you no longer need to wonder what projects are profitable.
Preparing for IPO
When preparing for an IPO, you need to start acting like a public company, reporting according to public standards. An Interim CFO brings invaluable experience with SEC reporting to the table as you evaluate underwriters, auditors, navigate through a roadshow, launch your offering and operate publicly.
Private Equity Portfolio Companies
Private equity fund managers must be confident they were thorough in due diligence prior to completing the purchase of a company, making an investment or add-on acquisition. An Interim CFO can lead diligence or step into an acquired company to optimize processes to ensure maximum future return on investment.
Financial Controls, Process & Procedure
As fast growing companies expand, the finance function must grow up as well. An Interim CFO provides strategic solutions to help navigate through growth such as SOX compliance, BPO, implementation of an ERP system, budgeting and forecasting, risk and compliance, and even finding a permanent CFO to move the company forward.
An Interim CFO Crosses Industries and Borders
Of all C-level leaders, perhaps the Interim Chief Financial Officer is most expert at crossing from one industry to another, applying their financial acumen to each challenge or situation. The product or service may change but the need for financial discipline, sound accounting, systems and policies is constant across industries and countries. Interim CFOs, true senior level professionals, are entering companies at every stage and situation from startup to Fortune 500, distressed to rapid growth.