Firm needs top interim CHRO for fast growing portco
A managing director came to us with a critical need for an interim CHRO for their software portfolio company. Having recently experienced meaningful growth through M&A, the portfolio company urgently needed a top interim CHRO to act as a strategic HR partner to the CEO and Board duringthe integrations. The managing director was looking to match the portfolio company with an interim CHRO who could drive cultural alignment, improve organizational design, support M&A integration, and engage a deeper pool of talent, among other things. They quickly neededa specific hire, with PE experience, industry knowledge, and M&A background.
BluWave identifies three pre-vetted interim CHROs with industry related background
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-gradeInterim CHROneeds. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of interim CHROsthat uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted interim executives from our invitation-only Intelligent Network that fit their exacting needs.
Portco engage exact-fit CHRO for interim position
Quickly after the initial scoping call, the PE firm and portfolio company were introduced to three PE-grade interim CHROs that specialized in M&A in the software industry.The client selected their ideal choice and was able to confidently move forward with a strategic thought partner to lead HR in the fast-growing portco. The company ultimately ended up hiring the interim CHRO for the full-time role.
Every quarter we gather leading women in PE to discuss current industry topics and to offer intelligent women the chance to gather, share information, and decompress with one another. In our most recent event, we gathered to discuss the current slower deal flow when compared to last year and challenges/opportunities in the face of recession.
These forums are exclusively for women at private equity firms and follow Chatham House Rules, so listed below are high-level takeaways only. If you are a woman in private equity and interested in joining fellow leading female PE professionals during our next Women in PE Forum, RSVP here.
Deal flow
After a historic 2021, deal flow is down across most industries. The summer months returned to a “normal” deal flow cycle, with fewer deals coming to market between Memorial Day and Labor Day.
There are still a considerable number of teasers, but the deals are not closing. Many seller expectations have not realigned to the market and are still expecting 2021 multiples.
The quality of deals coming to market is a mixed bag.
Looking forward, PE firms expect the rest of 2022 and early 2023 to remain slower.
Challenges and opportunities in the face of recession
There are several economic headwinds facing the private equity industry and its portfolios – including inflation, labor issues, & supply chain concerns.
While planning for 2023, PE firms are considering multiple scenarios, including a mild recession, a major recession, and a scenario where the current environment is our “new normal.”
We thoroughly enjoyed getting to gather with women in PE to discuss these current topics. We’d be happy to connect you to the PE-grade, exact-fit, third-party resources you need to assist you in this pressurized market, just contact us here.
Interim CHRO needed for high growth, professional services portco
A PE firm managing director came to us with a critical need for an interim CHRO for their professional services platform. Combining three companies to make the platform, the firm urgently needed a PE-grade interim head of HR to deal with contracts, advise future state systems, reconfigure benefits plans, help them migrate off their PEO and stand up their own HR function, and more. Closing on the platform in the upcoming week, the managing director quickly needed to fill this role with an interim who had industry expertise, previous experience with M&A and PE-backed middle market companies, as well as the ability to execute the needed tasks at a high level.
BluWave uses pre-vetted network to find top CHRO options
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim CHRO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of interim executives that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted CHRO from our invitation-only Intelligent Network that fit their exacting needs.
Firm engages chosen interim CHRO to drive success in portco
Within less than 24 hours of the initial scoping call, the PE firm was introduced to three PE-grade interim CHROs that specialized in M&A and the professional services industry. The client selected their ideal choice. Thanks to BluWave, the PE firm was able to quickly & confidently appoint a top interim CHRO to handle the transitions involved in the platform close as well as lead the HR strategies moving forward.
Our team had the chance to attend and sponsor the Hunt Scanlon September 2022 PE Conference in San Francisco – Driving Growth & Value Through Effective Leadership. Along with listening to thought leaders share their insights on a variety of panels, our Founder & CEO, Sean Mooney, also had the chance to sit on a panel hosted by Jennifer Perry of FMG Leading. The panel covered the topic of identifying and developing non-c-suite roles that have an outsized impact on value creation and included fellow thought leaders Raj Karanam of Sun Capital Partners, Kate Berkeley of Gryphon Investors, Darcy Casarella of New Enterprise Associates, Kevin Kernan of JM Search, and Valerie Frederickson of Frederickson Partners.
It was great to gather with so many thought leaders in the private equity human capital space at the Hunt Scanlon event. Here are some of the key takeaways we gleaned from Sean’s panel & the others:
Human capital continues to be a growing priority in private equity. A common theme from fellow attendees was recognition that talent-focused conversations weren’t prominent in PE as recent as 2 years ago, and many human capital leaders are either new to private equity, or to the human capital function. This was a topic we also discussed at our August 2022 PE Human Capital Forum (RSVP for our upcoming human capital event here).
A strong human capital function has 3 key components: people, processes, & technology.
People: Firms are taking a more proactive approach in getting the right people in place internally to assess and facilitate talent decisions.
Processes: Human capital leaders are ensuring they have effective processes in place for building/managing networks, talent pipelines, and interview processes.
Technology: In order to support their people and their processes, firms are leveraging technology to help them.
Talent to value is more important than ever. While getting the C-suite right remains the top & most critical priority, understanding what talent below the C-suite generates outsized value to their role, and then getting that talent right, is of growing importance in turbulent economic times. Identifying & assessing these roles is helpful immediately post-investment and if right sizing needs to occur.
Talent is becoming increasingly integrated with value creation plans. Leading firms are incorporating talent strategy into value creation plans from the get-go to ensure there is alignment.
PE firm has critical need for pre-close recruiters for a target company
An investment executive at a large cap PE firm came to us with a critical need to source trainers and university recruiters for a target company in the engineering industry. Prior to closing on the target company, the PE firm wanted to explore the available selection of talent they would have if the deal closed, and they chose to expand the UK-based company into the USA market. The investment executive urgently needed a PE-grade pre-close recruiter who could source the trainer and university recruiter candidates – both of which required a unique skill set and background.
BluWave has in-network, PE-grade recruiters with industry experience
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade pre-close recruiter needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of non-executive recruiters that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria. Then we connected the client with the select pre-vetted recruiters from our invitation-only Business Builder’s Network that fit their exacting needs.
The firm was equipped with the proper talent sources to proceed with their deal
Within less than 24 hours of the initial scoping call, the PE firm was introduced to a PE-grade non-executive recruiter that specialized in sourcing trainers and university recruiters for engineering technology roles. The client selected the presented provider and was able to confidently and quickly move forward in their diligence process, equipped with the necessary insight on the available talent they would need to drive value post-close.
PE firm needs GTM strategist to grow financial services portfolio company
A managing director came to us with a critical need for a growth strategy consultant for their financial services company. After several years of holding the company and experiencing annual organic growth, the PE firm was looking to accelerate growth within the portfolio company by reevaluating their GTM strategy. With a desire to grow the top line, the managing director had a crucial need for a GTM strategist who could help drive revenue through the improvement of the sales process and close rate while leading the analysis of overall go-to-market and growth options.
BluWave identifies PE-grade GTM growth strategists within pre-vetted network
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade GTM & growth strategy needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of growth strategy consultants that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted independent consultants from our invitation-only Intelligent Network that fit their exacting needs.
Firm is provided with an ideal growth strategy consultant for their portfolio company
Within less than 24 hours of the initial scoping call, the PE firm and portfolio company were introduced to a select few PE-grade GTM strategy consultants that specialized in evaluating growth in the financial services sector. The client selected their ideal choice, and the PE firm was able to confidently drive an excellent outcome without wasting or cost. With the strategy consultant’s guidance, the portfolio company was able to implement an organic strategy to increase revenue and grow the company.
Every quarter we gather Operating Executives in PE to discuss current industry topics and to offer peers the chance to gather, share information, and decompress with one another. In our most recent event, we gathered to discuss challenges and opportunities in the face of a recession.
These forums are for PE Operating Executives only and follow Chatham House Rules, so listed below are high-level takeaways only. If you are an operating executive in private equity and interested in joining fellow Operating Executives during our next Operating Partners’ Forum, RSVP here.
Acceleration is crucial during the current state of the economy:
Senses are heightened as a result of the current business world dynamics and past markets.
A number of the activities that would traditionally start during the post-investment closing period, now initiate before an investment is closed. For example, human capital searches are being brought into diligence and board of advisors are being formed pre-close.
PE firms are quickly looking to build strong platforms where they can do complimentary add-on acquisitions at lower valuations. BluWave has seen this ring true through the increased need for buyside M&A advisors and merger integration advisors.
Agility & data analytics:
An increasing focus on data and analytics allows PE firms to be extremely agile and change with the times.
A big piece of ensuring agility is a result of implementing data & analytics is making sure that the data is placed in the right hands, one of which is portco CFOs.
We thoroughly enjoyed getting to gather with PE Operating Executives to discuss these current topics. We’d be happy to connect you to the PE-grade, exact-fit, third-party resources you need to assist you in this pressurized market, just contact us here.
Learn more about how we can specifically help Op Execs here.
Interim CFOs are a powerful resource that can be used in a wide array of ways.
In this video, BluWave’s Founder & CEO, Sean Mooney, and Managing Director, Houston Slatton, discuss some of the most common uses of interim CFOs and the benefits to both the PE firm and the portfolio company.
Sean Mooney, Founder & CEO: Hi, my name is Sean Mooney. I’m the founder and CEO of BluWave. I’m joined here today by my colleague, Houston Slatton. Today we’re going to discuss one of the most popular use cases in the BluWave toolbox, interim CFOs.
So Houston, how does your team know who’s really good and what’s needed for a private equity grade interim CFO to exceed the standards of a private equity firm?
Houston Slatton, Managing Director: Sure, yeah, it’s a great question, Sean.
First, we’ve got dedicated research teams that are constantly mapping these markets to know who’s really good, know where they’re really good, and know what their specialties are.
Secondly, we use frameworks that you developed over your time in private equity, Sean, to be able to assess them and rate them against particular skills and capabilities, but through thousands of iterations, we’ve been able to take those and take them to the next level and beyond (check out our post that covers the five things to consider when hiring an interim CFO here).
SM: I think you guys have done a great job at that. Candidly, I was pretty good at it. I could do it but I was the king of brute force and it was a craft project every single time, and so what I think you guys have done a great job is through seeing it and doing it over and over and over again, developing these tightly owned processes for assessing who’s really, really excellent at things. I think you’ve done a great job. What do you think about next in terms of other things that you do?
HS: One, we vet them specifically for every opportunity. We want them to give us the “heck, yes,” or “no,” which means really we want them to be self-aware and only tell us it’s a good fit if it really is if it’s a 10 out of 10 project. They’re proud to be in our network, so we get that honesty, but then we also hold them accountable as well, by working with our clients to collect that feedback along the way at the end of projects, to hold them accountable and make sure they’re great.
SM: I think that’s a really powerful part of what we do, is this whole circle of trust. People who are invited into this network are proud to be in it, and they do everything they can to be excellent over and over and over again because it supports their success, and our clients’ success, in this symbiotic fashion. That’s great.
Through what you’ve seen in our client base, Houston, what are some of the ways that people are using interim CFOs?
HS: Sure. I guess one of the top ones is just the unanticipated departure. When a CFO may leave for any number of reasons, it’s great to bring somebody in that can keep their hands on the wheel, keep things moving quickly and continue to make sure the company’s producing at an excellent level.
We also see a lot of groups that need somebody to come in once a deal closes to do what we call professionalize the finance function, get the right monthly reporting packages in place, make sure that the PE firm is getting the information it needs, do any conversions, transformations, things like that to make sure that the finance function of the portfolio company is really up to private equity grade.
SM: Yep, and I think that’s a great emerging use of this resource in that they not only can get things done faster with more speed and certainty, but they get to show, particularly newer CEOs and CFOs, what really good looks like at the private equity standard when a new deal kicks off? What about on the other side of the equation?
HS: As PE firms start to think about selling a company, CFOs have a lot on their plates already, and so we’ve had clients who will bring in an interim CEO or an FP&A resource that can help respond to diligence requests, assess data, pull reports, and allow the full-time employees of the company to keep things moving while keeping the sale process moving without delay.
SM: Yep. I think that is one of the other really surging use cases for interim CFOs or FP&A professionals. The modern-day M&A process is fast and furious, and the second you have to hit pause you can see valuations decline. Our best clients right now are using that so they can run at a really fast pace and not lose momentum during a sales process, so I think that’s another great thing to think about for this type of really excellent professional.
HS: Sure.
SM: I think those are some great insights around a tool that’s been around for a long time in private equity, but is being used in different ways. One of the things that I’ve learned probably most since moving from private equity to BluWave is that experience and velocity and laps around the track really, really matter. When I was in private equity, I would do things episodically and it was hard to become an expert at them.
At BluWave we’re doing things thousands and thousands of time for the very best private equity firms. We have the highest standards in the world and that helps us become increasingly better and better and better every day, and it’s gotten to the point where we’re trusted by more than 500 of the world’s top private equity firms to help connect them with the very best third parties, who we’re very proud to work with as well.
If you’d like to learn more about BluWave and how we can help you, please feel free to reach out to Houston or any member of the team or me, and we’d be happy to do anything we can to help give you just a little more excellence, a little more alpha with ease, in a way that’s supportive of your success. Thank you very much.
Many businesses find themselves in a situation where they need to hire an interim CFO. This can be for a number of reasons, but it is most often due to a sudden change or growth in the company. If you are considering hiring an interim CFO, there are a few things you should know. In this blog post, we will discuss when and why you might need an interim chief financial officer, and we will also provide some tips on how to go about finding the right one for your business.
As your business grows, you will likely find yourself in need of more financial assistance. If your current chief financial officer is not able to keep up with the demands of the job, you may want to consider hiring an interim CFO. An interim CFO can help take some of the pressure off of your current team, and he or she can also provide valuable insights during a time of transition.
There are a few things to keep in mind when hiring an interim CFO. First, you will want to make sure that the individual has experience working with businesses that are similar to yours in size and scope. Additionally, you will want to find someone who is comfortable working on a short-term basis and who is open to being flexible with his or her schedule.
If you are considering hiring an interim CFO, we are here to help. We have a deep pool of interim CFO resources in our invitation-only network. We pride ourselves on our ability to match you with the exact-fit interim chief financial officer you need when you need them. You can learn more about our interim CFOs – including case studies, how-tos, videos, guides, and thought leadership here.
Key things to consider when hiring an interim CFO
Flexibility: When hiring an interim CFO, it is important to remember that this is a short-term solution. As such, you will want to make sure that the individual you hire is someone who is comfortable working on a short-term basis and who is open to being flexible with his or her schedule.
Speed: The head of finance is a mission-critical role for the business and it is a seat you do not want to leave open for any longer than you need. It is imperative that you find someone who can step into the role that aligns with your needs.
Budget: There is a wide range of rates for interim finance executives. Find a resource that fits within your budget.
Similar experience: You will want to find someone who has experience working with businesses that are similar to yours in size and scope.
Cultural fit: Company culture is core to your business. Ensure this is accounted for in your interviewing process.
What about a fractional CFO?
If you are not sure where to start your search for an interim chief financial officer, you may want to consider using a fractional CFO service. Fractional CFO services can provide you with access to experienced professionals on a part-time basis. This can be a great option if you are not ready to commit to hiring a full-time CFO.
We connect you with the third-party resources you need
No matter what route you decide to take, it is important to remember that the goal is to find someone who can help your business during this time of transition. An experienced interim CFO can be a valuable asset to any business.
