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Business Intelligence Automation: What is it?

March 10, 2023 Brad Gerick

Business intelligence continues to be among the most high-demand services in the Business Builders’ Network.

One aspect of BI&A that’s popular is automation.

The founding partner of one of our BluWave service providers says BI automation is essential to modernizing data analysis.

“A lot of times the process involves people pulling data into spreadsheets manually, analyzing, cleaning, doing stuff with the data and then giving it to their bosses or whoever downstream needs them,” says the partner, Mike Datus*. “That’s usually a very error-prone process because it’s done by humans.”

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BI automation can change all that, and make life much easier for both the analysts as well as those downstream superiors.

Let’s talk in more detail about BI automation tools, their benefits as well as potential drawbacks.

What is Business Intelligence Automation?

Business intelligence automation is the process of consolidating and streamlining your company’s data into a single warehouse that can be accessed in real-time.

Automation provides instantaneous insights that forgo manual input and data manipulation to give team members actionable, consistent information to drive their day-to-day decisions.

Put another way, it helps you automate business processes.

Companies that are older, or perhaps resource-challenged, can benefit greatly from automating their data collection and analysis.

Another data firm’s founding partner, who we’ll call Steve Holms*, puts it this way:

“Holding larger data sets and integrating more data sources to do analysis across several different places makes it a lot easier to analyze.”

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Business Process Automation Benefits

It’s no surprise that business intelligence tools are in such high demand. We have seen countless PE firms and other companies streamline processes and improve real-time decision-making because of them.

Here are just a few of the reasons why you should consider implementing or upgrading your automation efforts.

Save Time

Not only will you complete key tasks sooner, but you’ll be able to make important decisions faster, too.

“You’re talking about orders of seconds instead of hours or days, right? And then that’s huge,” Datus says. “With one of our clients, we built a platform, so instead of waiting a week, the CFO now had a live dashboard in board meetings. So when he was asked a question, he didn’t have to say, ‘I’ll get back to you next week.’ He literally just popped up his dashboard, did a quick filter, and had the answer.”

Our service providers often see situations where top executives need different versions of the same report depending on who they’re working with or what meeting they’re in at a given moment.

This often meant one-off iterations of the same data sets that take might not be available the same day, or even week.

“If the analyst has to go back, they have to go back and pull the data again, do the analysis, run it through, right? That’s another runtime,” says Holms, who noted that those iterations add up.

Another time-saving scenario is if an analyst leaves the company, is on vacation or has an emergency. Data analysis doesn’t stop as soon as that key player becomes unavailable.

“You only have to program it once, and you’re done,” Holms says. “It’s all in the database, and they don’t have to email anybody in case they didn’t get the report.”

Scalability

Have you ever tried to access a report so robust that you thought your computer might break down? You’re not alone.

Another benefit of business intelligence automation is the ability to scale.

“Sometimes your data’s so large, it’s hard for Excel to even open, right?” Holms says. “How does sales correlate with product performance, correlate with manufacturing, correlate with this? —putting it in one place makes things a lot easier to expand.”

Save Money

There are multiple ways BI automation can save your company money:

You may be able to reduce headcount on your analytics team and reinvest those savings elsewhere
The time you do save – as mentioned earlier – is time for which you’re no longer paying
The data itself could unveil inefficiencies in your business that are ripe for improvement
Manual intervention is expensive. By cutting out intermediaries, and empowering decision-makers more quickly, they can use expertise that no program can account for to make impactful decisions

Consistency

Humans are much more error-prone than machines. Especially well-designed and well-programmed machines.

While you wouldn’t want to automate a process so heavily that it’s no longer monitored, the correct calibration can set your team much more at ease.

“You’re building good processes to make sure it’s consistent. It’s done by computers, so once you do it once it’s pretty robust, unless the data itself changes or the business changes,” Holms says. “Sometimes you just get errors that are difficult to detect. And if you want to go back to see what were my numbers last week or two weeks ago or three months ago, you have to go into your email inbox and search for the report.”

With BI automation, you can leave the inbox behind and find everything you need in your dashboard.

“It’s all in the database,” Holms says, “and they don’t have to email anybody in case they didn’t get the report.”

Dynamic Reports

As we already hinted at above, automated dashboards and visualizations are essentially living, breathing databases.

Instead of plugging new information into a spreadsheet every time you want to update a report, it’s available instantaneously. Not only that. Since it’s connected to the source, you don’t have to input the data at all.

“Once you have it all there getting updated predictably, you can create these really rich charts and graphs, because with these tools you can get these visuals that aren’t static,” Datus says. “The real-time dashboards update as the data comes into the system. So if you want to see one chart or the set of 20 charts for last week just for finance, you can click a few things, and you can get that report.”

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Risks of Automation

While automation can be valuable to a business, it doesn’t come without some potential downside. With the right help, though, we believe all of these can be overcome.

Job Loss

Automation may replace human workers and lead to job losses – at least in the short term.

A benefit of this, though, is that it frees those some people up to learn and use new skills that are equally valuable to the business. Money saved on one area of human capital can be reinvested in your talent.

System Failures

Automated systems can experience technical issues, thereby disrupting business operations. You would hope that this is the exception and not the norm, but even so, manual intervention may be required to fix the issues.

Expert service providers, however, are familiar with the most common vulnerabilities, and will know how to not only fix them, but also proactively prevent them.

Lack of Flexibility

Automated systems are designed to handle repetitive, routine tasks in a predetermined manner. They may lack the flexibility to adapt to unexpected situations or changes.

This is quickly changing, though, with the implementation of more and more AI tools that can often course-correct much faster than humans.

This perceived “risk” is quickly becoming a moot point in many senses.

Cost

Implementing and maintaining automated systems can be expensive. This is most likely to be an issue for very small businesses that have less to automate and can handle all their data by traditional means.

Large companies with more robust budgets will probably find that the investment is well worth it in the long run. This includes private equity firms, their portcos, and private and public companies of all shapes and sizes.

While automation involves these and other risks, it’s an increasingly valuable and in-demand facet of business intelligence. Based on the feedback we receive from our clients and expert service providers, we wouldn’t shy away from exploring how your business can benefit from automation.

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BI Automation Tools

Now that you have considered the pros and cons of BI Automation, it’s time to look at the tools at your disposal. While all of these can have a significant impact on your business, you want to make sure you’re using the right ones.

Let’s get familiar with a few of the high-level categories, as well as some specific business automation technologies within them. That way, when our research and operations team connects you to a tailor-made, niche-specific firm to set up your BI automation, you’ll have an idea of what you’re looking for.

Dashboards

BI automation dashboards display key performance indicators, data points and other important metrics in an easy-to-understand format. They provide a 360-degree view of performance using charts, graphs and other visuals.

They offer a quick-glance overview of your organization’s most important metrics, allowing users to quickly identify areas of strong or weak performance, spot emerging trends and gain data-driven insights. Some examples include Power BI, Tableau and Qlik Sense.

Common metrics used to evaluate business performance are cash flow, customer satisfaction and website traffic. Others include sales revenue and customer loyalty.

When you work with an experienced data analytics firm, they’ll be able to match your business needs to the right tools.

Visualizations

BI automation visualizations enable end users to execute automated workflows based on insights within a report. The workflows can be data-contextual, meaning they can change based on filters.

They are often used to connect multiple data sources, create interactive dashboards and charts, provide real-time visualizations and alerts and utilize natural language processing.

Power Automate visual, DataBox, Datapine, Domo and IBM Cognos Analytics are a few of these tools. They can be used to connect to Excel spreadsheets, SQL databases, social media platforms and more.

Predictive Analytics

This type of BI automation tool leverages artificial intelligence and machine learning to automatically generate and apply predictive models based on data insights. Predictive models are employed to forecast what may occur in the future dependent on historical and current data.

These are often used to predict things like customer churn, sales revenue and product demand. They’re especially utilized in the healthcare, finance and marketing industries.

Some of the more popular tools include RapidMiner, Alteryx, SAS Visual Analytics, KNIME, and SAP Analytics Cloud.

Data Mining

Data mining techniques to extract valuable insights from large data sets for making more informed decisions. It’s a branch of data science that searches for patterns, anomalies and correlations in using statistics, artificial intelligence and machine learning.

It’s often used to solve customer segmentation, fraud detection and market basket analysis. Many of the tools listed in the sections above can also be used for these tasks.

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If a lot of this sounds new to you and your team, that’s OK. In fact, Holms says that even a well-composed manual report can be a great launching point for BI automation.

“I would say even if you have an Excel report and it’s a good Excel report, you’re already ahead of the game,” he says.

If you don’t know where to start, set up a scoping call with our research and operations team. We’ll connect you to world-class firms like Datus’s, Holms’, or other PE-grade service providers that can serve your exact needs for your particular industry.

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*Privacy is important to us. While the source and company name have been changed, these are real quotations from a real service provider in the BluWave Business Builders’ Network.

Private Equity Recruiting: Portco Resources

February 10, 2023 Brad Gerick

Private equity portfolio companies have a unique set of challenges when it comes to attracting and retaining top talent. The stakes are high, as the success of a portfolio company can make or break a private equity firm’s investment.

That’s why it’s crucial to have the right resources and strategies in place to recruit effectively.

Specialized Recruiters by Industry

With so many portcos to manage, private equity firms can struggle to attract and retain the right talent.

Competition is fierce, especially if resources are limited and the portco isn’t a known entity. Additionally, not everyone is cut out for the fast-paced and high-pressure environment of private equity.

Let’s talk about what PE firms can do to hire standout performers for their portcos.

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Effective Recruiting for Portfolio Companies

So, how can private equity firms overcome these challenges and recruit the talent they need to succeed? The key is to have a well-thought-out and proactive approach. Developing a strong brand and reputation can go a long way. So can having a robust pipeline of candidates and using innovative recruiting strategies and technology.

Having the right strategy in place isn’t always enough, though. It’s also crucial to execute effectively.

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Step-by-Step Approach to Portfolio Company Talent Acquisition

Here are some steps private equity firms can take to attract and hire top talent:

Define the Roles and Skills You Need

Start by identifying the key positions and skills you need to fill at each portfolio company. This will help you narrow your list to only the most qualified candidates instead of wasting time with people who don’t have the right skillset.

To put it another way, you wouldn’t hire a chief technology officer with zero coding experience.

Develop a Strong Employer Brand

To attract top talent, you need to have a strong reputation and brand as an employer. This includes promoting your company culture, values, and opportunities for growth and development.

A great way to do this is by using social media to show off your company from the inside. You can also work with a PR firm – or someone internally – to connect with journalists at prominent publications that cover your portco’s industry.

A quality article by a reputable publication creates a lot of credibility.

CASE STUDY: Recruiting a Turnaround CEO for Sporting Goods Manufacturer

Build a Robust Pipeline of Candidates

Having a deep bench of qualified candidates is crucial for filling positions quickly and efficiently. Use a variety of sources to find them, including employee referrals, job boards, social media and recruiting events.

You can also work with specialized recruiters who are skilled in finding best-fit candidates for specific situations.

At BluWave, we don’t actually “find” candidates when you contact us. That’s because we already have dozens of them on standby for whenever a need arises.

If you’re looking for a specialized recruiter to build the perfect team, we have the service provider for that, regardless of your industry. And if you want to get straight to hiring your dream individual, we have proven PE-grade candidates ready to interview.

Even if you’re not a PE-backed business, our resources are primed to work for private and public companies, too.

Utilize Innovative Recruiting Strategies

Don’t underestimate the power of technology. This can make for a more efficient process by helping with things like applicant tracking, conducting virtual interviews or leveraging data and analytics.

There are business intelligence and analytics resources who specialize in this. Let us know if you want to speak with one of them.

Continuously Evaluate and Improve

Finally, it’s crucial to continuously evaluate your talent acquisition processes. This includes regularly assessing the effectiveness of your recruiting efforts, making changes based on your results and staying up-to-date with the latest best practices and trends.

No matter how good your process is now, we believe in constant refinement. Especially in today’s fast-changing, uncertain business world.

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Innovative Solutions for Finding and Attracting Top Talent

Once you have your system in place, you can focus on something we mentioned above: developing a strong brand.

All other things being equal, is a candidate more likely to work for a company of which they have never heard, or a well-known industry titan that will stand out on their resume? Probably the latter.

But even if your portco isn’t that big-name company yet, it doesn’t mean you can’t work toward it.

Here are some innovative solutions private equity firms can use to find and attract top talent:

Virtual Recruiting

With the rise of remote work, remote recruiting has become increasingly important. Virtual tools, such as video interviews and online career fairs, can help private equity firms reach a wider pool of candidates and make more informed decisions.

Even if you’re not willing to let someone work remotely, at least making the interview process as convenient as possible – especially if they already have another job – can go a long way.

CASE STUDY: Elevating IT Leadership for Tech-Enabled Compliance Services

Employee Referrals

Referrals are a powerful way to attract top talent. Encourage your existing employees to refer their friends and colleagues and reward them with one-time payouts, extra vacation days or gifts.

You never know when someone in finance could have a connection to the perfect fit for a new IT role, for example.

Employee Development Programs

Investing in employee development and training can help retain top talent and attract new hires. Offer opportunities for career advancement, continuous learning and professional growth to keep your employees engaged and motivated.

A prospective candidate may be willing to choose your company over a competitor if you pay for their school or send them to conferences on company money.

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Maximizing Your Private Equity Talent Acquisition Efforts

Private equity firms that take a strategic and proactive approach to talent acquisition are well positioned to succeed. But it’s important to remember that the best strategies and solutions are only effective if they are executed effectively.

Here are a few tips for maximizing the impact of your talent acquisition efforts:

Partner with the Right Providers

The right recruiting and HR providers can help private equity firms execute their talent acquisition strategies effectively. Look for providers with a proven track record and expertise in private equity recruiting.

The BluWave network is full of expertly vetted interim CHRO candidates who know exactly what to do in these situations.

Foster a Culture of Collaboration

Open communication across departments – and between the PE firm and portco – can be a big help. Encourage regular information sharing to ensure a consistent and effective approach.

Continuously Evaluate and Improve

Whether using data software, as suggested above, or conducting face-to-face exit interviews, the better you understand what makes top talent leave – and stay – the better prepared you’ll be to find that next dream candidate.

At BluWave, we have helped hundreds of PE firms find exact-fit candidates for their portcos.

Whether looking for an interim CFO, or in need of a specialized recruiter to help you find a new CRO for a niche industry, we have talent and service providers on standby.

When you go through scoping call with our research and operations team, they’ll provide two or three best-fit solutions in less than one business day.

From there, we’ll be by your side from the first introduction all the way until your project is complete to hold resources accountable.

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Interim CFO for a Financial Crisis

January 13, 2023 Brad Gerick

When a company faces a financial crisis, an interim chief financial officer can make all the difference in a successful turnaround.

Whether going through a restructuring, facing bankruptcy or other challenging financial situations, an experienced financial leader is essential.

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Situations for an Interim CFO

A financial crisis can be due to something within a company, external economic forces, or both.

Poorly responding to a distressing financial situation can destroy a business. A capable interim CFO, however, will know how to navigate the following scenarios.

Bankruptcy

The two most common bankruptcies a company will file for are chapter 7 and chapter 11.

When a company files for chapter 7 bankruptcy, it plans to shut down.

Chapter 11 bankruptcy, though, means a company is still viable but needs help relieving some of its debt.

While an interim CFO would seldom take on a chapter 7 bankruptcy, it’s common for them to step in and help a company try to avoid chapter 11 bankruptcy. If it’s not avoidable, a temporary chief financial officer can also help navigate the situation.

“A very good interim CFO can be a lot of help because they come in and they look at, ‘What are the things between gross profit and net earnings that are negatively impacting the business?’” BluWave controller Justin Scott says.

Cost-saving measures could include lowering headcount, cutting advertising costs or negotiating with creditors, which we’ll discuss more below.

Restructuring

While most restructuring situations are tied to bankruptcies, there are exceptions. Here are some of the more common ones.

Carveouts

An interim CFO who can adeptly perform carve-out tasks is key for organizations looking to sell off part of their company. That can mean getting their hands dirty setting up general ledger architecture or determining which employees to include in the sale.

“Let’s say 25 percent of the existing team is going with the carve-out, then I’ve got to decide ‘What’s the 25%? How are those processes going to work?’” Scott says. “Where you typically see the carve-out CFO come in is because they don’t want all of those activities to take away from the core business that the existing CFO is already managing.”

CASE STUDY: Interim CFO with Expertise in Commodities, Hedging for Manufacturing PortCo

M&A Integration

An acquisition, of course, is the opposite situation. The finance executive must determine how to integrate multiple teams in the same company.

“You likely have multiple sets of books. You have multiple systems. None of them talk to each other,” Scott says. “Essentially, you’re running parallel systems or parallel processes for everything. And then you have to manually consolidate everything and that’s just no fun.”

Ginessa Ross, who is often the first point of contact for interim CFOs BluWave works with, says lots of clients have been emphasizing M&A skills recently.

“All sides of it, whether it be due diligence, post-merger integration or prep for sale – having M&A experience, especially in private equity, is key,” she says.

Cost Savings

A turnaround CFO may be sought when accounts payable get out of control.

If the internal team has become bloated, they’re likely to partner with someone in human resources to reorganize the company more efficiently.

“It’s not typically just finance here. It’s typically that a new technology has been implemented that’s changed the field and headcount needs to be reduced,” Scott says. “How do we eliminate or mitigate the overhead expense of the SG&A of what’s happening today?”

They may also cut marketing costs or improve operations to find savings. This can be done by spending less on advertising, implementing automation tools or canceling automated subscriptions, for example.

Hostile Takeover

Although unusual, there are times when a temporary finance executive is brought in for a hostile takeover.

“It is possible to go to an interim CFO as a stopgap,” Scott says. “But it’s not a likely scenario.”

More often, the company executing the takeover will already have a CFO in place.

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Skills Needed for a Financial Crisis

What skills does an interim CFO need in a time of crisis? Accounting and finance, of course, are fundamental.

“You have to know the full revenue cycle cradle to grave,” Scott says, adding that strong management is also a key trait.

There are other things, though, that are particularly important for a chief financial officer in financially distressed situations.

Internal Communication

When managing a company’s finance team, the interim CFO must be able to communicate their plan of action. Since they’re typically in the role for around six months, they don’t have as much time to win trust and build unity.

Focusing the early days on getting to know the team helps with buy-in for the duration of the project. One component of this is alleviating fears of the unknown.

“The first day, I think, is talking to as many people as possible in the company, on the finance team, and reassuring them that things are going to get better,” says one long-time interim CFO from our network of experts.

A temporary finance executive must also be able to communicate with his or her peers and superiors. Not only do they sit in the C-suite, but they may be a direct line to a private equity firm that has a lot at stake.

“They have to be able to build credibility going both directions quickly if they’re going to get anything done,” Scott says.

External Communication

Beyond providing clarity for coworkers, a chief financial officer must also be skilled at working with clients, creditors, vendors and other outside entities.

If a company is in danger of filing for bankruptcy, the interim CFO will likely negotiate with creditors to lower their debts.

They may also ask clients to move up their timeline for accounts receivable so the organization can have more cash sooner.

In either case, being able to work well with others is paramount.

“The situations where financial executives most often fail to reach an agreement are when they don’t have any people skills, or they don’t truly want a result,” Scott says. “You have to be able to bend and give a little bit on some of these things just like in any negotiation.”

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Crisis Exit Strategy – Prep for Sale

Before taking a company’s financial reins in the midst of a crisis, an interim CFO should understand if the firm is planning an exit, and if so, what the strategy is. That allows the company to get the maximum benefit out of its new executive resource.

“Bringing in somebody from the outside allows you to access a broader set of skills and brings a fresh perspective,” BluWave managing director Houston Slatton says.

Here are some differences between prepping to sell the entire company vs. just a few assets.

Sell the Entity

If someone is brought on to prep for the sale of an entire company, their job is to get it in the best shape possible for the buyer.

Not only will this make it a more attractive purchase, but the seller will extract more value, too. This process should be planned for months, if not years in advance, when possible.

The interim chief finance officer brought on in this situation should have experience improving operations, cutting costs, increasing accountability and more. They should also be well-versed in evaluating and working with potential buyers and closing the transaction.

CASE STUDY: Temporary Finance Leader for a Creative Digital Agency

Sell the Assets

Even when parts of a company are being sold, as opposed to the entire organization, many of the same skills apply.

In this scenario, though, the company remains intact, and employees are not typically part of the package.

The right executive will help an organization receive a large return for those assets, boosting cash flow.

Each interim CFO in the BluWave network has been vetted and reference-checked before we ever put them on our roster.

That way, when companies in financial distress reach out, we can provide two or three exact-fit solutions in less than one business day. Whether your company is in the nation’s capital, Atlanta, our hometown of Music City, or any other major city, we have the resources you need.

This attention to detail and our private-equity speed turnaround give organizations a greater chance of getting back on track financially.

Learn more about the select group of private equity-grade interim CFOs we work with daily.

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In the Know: How to Action BI & Analytics Experts

November 10, 2022 Delaney Walker

As part of an ongoing series, we’re sharing real-time trending topics we are hearing from our 500+ PE firm clients. In our most recent installment, Jeremy Yoder, a BluWave Strategic Account Executive, shares how to action BI & Analytics experts, detailing the different use cases firms and other proactive companies have for bringing in data & analytics experts. Learn more by watching the video below.

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Video transcript:

In our increasingly digital world, business intelligence and analytics is a growing input factor for companies to measure their level of growth and for private equity firms to evaluate the success of their portcos. PE firms come to BluWave with needs for data and analytics specialists who can help drive effectiveness and efficiency within their portfolio companies. Here are just a few of the most common use cases we see for why a firm brings in data and analytics specialists.

Number one, developing more measurable metrics at the portco level. The first step to making data-driven decisions is having the right metrics and reporting measures in place. Many companies are lacking this when their first PE sponsor comes into the picture, so our clients equip their new portcos with specialists who can help companies build a solid metrics and reporting foundation. This gives the PE firm visibility into how their portcos are tracking against those set goals.

Number two, data diligence. For companies with large sets of data on products and customers like companies in the B2C sector, there is often hidden value hiding within these datasets if they aren’t being analyzed. When companies aren’t actioning the data available to them, leading PE firms bring in specialists to uncover what stones are being left unturned and help glean risks and actionable opportunities from the data that already exists.

Number three, cleaning and assessing data. The most forward-thinking PE firms are using specialists to clean and assess their portcos data so that they can improve the precision of their evaluations and more deeply inform the health of their organizations. We have a deep bench of business intelligence and analytics providers at the ready for a variety of niche needs. To get connected to the PE-grade,exact-fit provider you need, contact us at info@bluwave.net.

Specialized Recruiting Firm Vitally Needed by Portco CEO

Portco CEO needs to hire new Head of Sales

The CEO of a residential services portfolio company came to us with a critical need for a recruiting firm that could source a Head of Sales for the company. The business’ primary focus was equipment rental, waste management, and construction; therefore, the CEO needed a candidate who was well versed in the sales cycles of these specific sectors. Looking to make the hire quickly, the company urgently needed a best-in-class specialized recruiting firm who already knew strong candidates in this field and would be capable of leading the company’s sales department and overseeing the account managers.

BluWave has exact-fit recruiting firms in network

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing best-in-class talent sourcing needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of specialized recruiting firms 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 providers from our invitation-only Intelligent Network that fit their exacting needs.

CEO engages specialized recruiting firm with industry background

Within less than 24 hours of the initial scoping call, the portfolio company was introduced to two PE-grade recruiting firms that specialized in the construction and waste management sectors of the residential services industry. The CEO selected their ideal choice and was able quickly source a top Head of Sales to lead the department, thanks to the recruiting firm’s specialized expertise.

In the Know: The Importance of Interim CFOs

October 27, 2022 Delaney Walker

As part of an ongoing series, we’re sharing real-time trending topics we are hearing from the hundreds of PE firms we work with. In our most recent installment, Erez Schnaittacher, BluWave vice president of client coverage, shares the importance of interim CFOs and why they are a vital resource all PE firms should be taking advantage of. Learn more by watching the video below.

Interested in connecting with interim CFOs? Contact us here to quickly get connected to the exact-fit interim CFO you need.

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Video transcript:

The CFO role is one of the most critical seats in a business. The position plays a key role in ensuring that a business is strong and if PE-backed, that the investment is successful. Because this seat is vital to a company’s success, it is important that it is not left open, and is also filled by someone who possesses the right skillset to execute on the demands that come with being a CFO.

To ensure that both of these are always the case, PE firms often turn towards interim CFOs. At BluWave, we equip our private equity firm clients with interim CFOs for various due diligence, value creation, and prep-for-sale needs. Here are some of the most common use cases for bringing in interim CFOs:

Number one, unanticipated departures. When CFOs unexpectedly resign, it can leave a company’s finance function in chaos. We help PE firms combat this by providing them with exact-fit interim CFOs who can quickly step in, fill the shoes of the role, and keep the ship steady while the search for a permanent placement kicks off.

Number two, longer than normal hiring processes. Even when a CFO seat is expected to be vacant within a certain timeframe, sourcing a candidate to step in at the exact time you need them to can be challenging. With hiring processes taking longer than normal, interim CFOs can help bridge the gap, giving you extra time to ensure you hire the best-fit person for the job.

Number three, professionalizing new portcos’ finance functions. We are supporting many PE firms as soon as a deal closes, by supplying them with interim CFOs. These firms are bringing in these individuals to help new portcos’ finance functions understand what it means to be PE-grade, and help them get the right monthly performance packages in place to ensure that the PE firm is getting the info it needs.

And finally, number four, prep for sale processes. Our clients bring in interim CFOs to respond to diligence requests, assess data, and pull reports prior to a sale. By bringing in an extra set of hands to take care of the extra workload that comes with a sale process, FTEs are freed up to maintain focus on keeping the daily routines going, without causing a delay on the sale process. The modern-day M&A process is fast and furious, valuations decline the second you have to hit the pause button, making it crucial to keep the momentum.

Interim CFOs are one of the most versatile and useful resources available to private equity firms. Hundreds of leading firms come to us with their interim CFOs because of our ability to know before they need, hone in on individuals that meet their specific, unique criteria, and quickly connect them to the select few that are exact-fit.

If we can support your interim CFO needs, please contact us at insights@bluwave.net.

Critical CHRO To Step in as Interim Support

Strong interim CHRO needed to lead HR in healthcare services portco

A proactive healthcare services company came to us with a critical need for an interim CHRO. With the current head of HR leaving and the recruiting process taking longer than normal, the healthcare services company needed a strong HR leader with role and industry expertise to come in and provide support during the interim, an expected time frame of 3-6 months. Already with ~1000 employees and additional acquisitions on the horizon, they urgently needed a local HR leader that could be boots on the ground in HQ during the pandemic.

BluWave responds to niche need by providing top interim CHRO candidates

Leveraging our experience working with thousands of proactive companies, we have extensive frameworks for assessing interim CHRO needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of experienced HR leaders that uniquely meet the highest standard. We interviewed the company to understand their specific key criteria, and then connected them with the select pre-vetted interim CHRO candidates from our invitation-only Business Builders’ Network that fit their exact needs.

The company selected their ideal choice and filled the role with a top hire

Quickly after the initial scoping call, the healthcare services company was introduced to four top-notch interim CHRO candidates that specialized in healthcare services. The client selected their ideal choice, allowing them to quickly retain this critical role without wasting time or cost. The candidate ended up being such a great fit thanks to their background, that they were flipped to the organization’s permanent position after only three months of serving as an interim resource.

Essential Need for Data Consolidation, Analysis, Visualization

Consumer products portco in critical need of data consolidation and analysis

A portfolio company came to us with a critical need for a business intelligence and analytics provider to consolidate data for their consumer products business. With sales data coming in from their distributors in different manners, they had a critical need to gather and interpret the information they received into usable insights on consumer behavior, sales conversions, and product success. The portfolio company required a business analytics expert to outsource this task to that could quickly consolidate, analyze, and help them visualize their data into information they could action.

BluWave identifies two exact-fit business analytics providers

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade business intelligence and analytic needs for proactive companies. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of business analytics providers that uniquely meet the private equity standard. We interviewed the portfolio company to understand their specific key criteria, and then connected the client with two select pre-vetted business intelligence providers from our invitation-only Intelligent Network that fit their exacting needs.

Company confidently engages both PE-Grade providers

Within 24 hours of the initial scoping call, the portfolio company were introduced to two PE-grade business intelligence providers that specialized in consumer goods. The client engaged both providers to help with two different aspects of the data project at hand. The portfolio company was able to confidently engage the pre-vetted providers and quickly move towards their goal of value creation through data consolidation and insights.

Interim CFOs – Why Use Them?

September 19, 2022 Kyle Johnson

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.

You can learn more about the finance resources we have, including interim CFOs, FP&A experts, and more here.

Video Transcript

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.

Interim CFO: When and Why You Might Need One

September 16, 2022 Kyle Johnson

When is an interim CFO needed?

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.

We connect you with the exact resource you need. Do not hesitate to reach out and ask for help if you feel like your company is in need. You can learn more about our interim CFO offering here or you can connect with a member of our team here to get started.

How to find the right-fit interim CFO for your growing business

September 15, 2022 Sean Mooney

I get asked a lot of questions about how to build a business, and how to do it with as few headaches as possible. Not that I’ve totally figured it out, but I’ve certainly made my fair share of missteps and gratefully have learned something along the way. From investing, to hiring, to reducing headcount, to managing the ups and downs of an economic recovery period—one thing remains unchanged: leadership matters. And if you’re talking about key leadership positions, the one that companies most often get wrong is the CFO.

Why? Well, the answers are as varied as the reasons they fail, but it generally has to do with asking the right questions from the beginning. In other words, the interview process is often to blame.

I wrote an article for CFO Magazine about “hiring the right interim CFO” and how to ensure you set your company up for success when it comes to hiring one of the most important positions. Whether you are looking for an interim CFO (who can move into a full-time position) or looking for a full-time financial executive, here are some things you should know before you greenlight your new hire:

8 Things To Know Before Hiring An Interim CFO

If you are a PE-owned company and need to bring in a short-term finance chief, find someone who has worked for a PE-backed company before.
The interim executive needs to have a track record of wins. That generally means a significant tenure at multiple companies.
Find someone with industry experience, because it’s much easier to stand at the finance helm of a manufacturing, healthcare, IT, or services company if you’ve done it before.
Similarly, the interim CFO should have experience working for a company of similar size and scale.
It’s not enough to understand the numbers (sales, revenue, overhead) — you need someone who understands what the numbers mean.
For the best results, find a pro who has a high IQ and a high EQ (emotional intelligence), because the interim CFO needs to quickly gain favor from others in the organization to gather information and build a story around the numbers.
Be sure to have conversations with key stakeholders in a candidate’s prior roles. Choose the references; do not use the references the candidate gives.
While enthusiasm is a wonderful aspect of a new leader, a short-term executive should have a stabilizing effect, not a disruptive one.

For more details and to read the full article in CFO Magazine, click here.

Interested in connecting with a CFO or interim CFO in our network? Contact our head of sales, Scott Bellinger, here.

In the Know: Organizational Design & Effectiveness

September 14, 2022 Delaney Walker

As part of an ongoing series, we’re sharing real-time trending topics we are hearing from our 500+ PE firm clients. In our most recent installment, Private Equity Consultant, Ryan Perkins, shares why the inflation-driven recession has caused firms to prioritize bringing in organizational design & effectiveness resources, and what types of those resources are being utilized the most.

Learn more by watching the video below.

Interested in connecting with interim CHROs, HR-focused consulting firms, or org design consultants? Contact us now to get quickly connected to the exact-fit, PE-grade resources you need.

Video transcript:

The inflation-driven economic downturn has created a complex environment, causing private equity firms to take unique action, balancing right-sizing before the storm with retaining and recruiting key personnel. With human capital being a strong input for ensuring success through this downturn, PE firms are bringing in specialized third-party resources to resolve organizational design and effectiveness needs. Here are a few specific resources that we’ve seen our clients engaging on.

Number one, Interim CHROs. Bringing in experienced interim CHROs with deep industry knowledge is a great way to ensure the human capital needs of your portcos are in steady, expert hands. An effective interim CHRO can steer the HR ship during a recession, ensuring your portco will have the right people in place to get through the downturn and position your portco for growth moving forward.

Number two, HR-focused consulting firms. Specialty firms are a great tool that private equity firms utilize to gain expertise on corporate structure and talent output, without adding personnel directly into a portco. Consulting firms that have experience working with private equity-backed companies can be extremely advantageous when making decisions around comp and benefits, staffing needs, restructuring projects, and expansion requirements during an economic slump.

And number three, organizational effectiveness consultants. Process optimization is essential to keeping up with the pace needed to thrive in times of uncertainty. Organizational effectiveness consultants ensure that processes within your portcos will help them run towards the storm by evaluating them as they currently exist, and suggest any required changes according to their industry expertise.

For private equity firms, uncertain economic times should be treated as times of opportunity. Ensuring the organizational design and effectiveness of your portfolio companies can be the difference between generating momentum versus treading water in a recession. At BluWave, we have the private equity-grade resources to position your portcos for growth, no matter the economic landscape. For information on how to get connected with best-in-class, organizational design and effectiveness groups, or any other third parties you may need, contact us today at info@BluWave.net.