A PE firm principal came to us with a critical need for a CFO consultant for their manufacturing portco. Since their seasoned CFO left the company around a year ago, a young, less experienced CFO entered the leadership role. Having never been a CFO before, the firm needed an executive coach who could provide the young CFO with leadership training and serve as a mentor to them to help them get up to the speed of a C-suite role. The firm urgently needed someone with experience as a CFO in a PE-backed company, knowledge in the alcohol beverage manufacturing field, and who was willing to be onsite for 20 hours a week.
BluWave finds exact-fit CFO consultant with industry expertise
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade executive coaching needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of executive coaches 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 executive coach from our invitation-only Intelligent Network that fit their exacting needs.
Firm confidently engages PE-grade CFO consultant
Quickly after the initial scoping call, the PE firm and portfolio company were introduced to two PE-grade executive coaches that specifically worked with CFOs in the manufacturing industry. The client selected their ideal choice, engaging an exact-fit exec coach with a consumer manufacturing background, multiple referrals from PE-backed companies, and availability to travel to the needed location. The PE firm was able to confidently move forward with the new CFO knowing that he was getting the training he needed to get caught up to speed.
Firm needs specialized providers across their diligence provider matrix to assess target
A PE firm investment team came to us with a critical need for a full set of industry specialized diligence providers that could assess their target in the commercial roofing space. Having recently received the deal under LOI, the firm was preparing a full diligence analysis on all aspects of the business. The team had a sense for the typical providers they used, but knowing the value of using specialized providers on a deal-by-deal basis, they wanted BluWave’srecommendation for providers that were the best in class for the specific industry and needs of the target. Specifically, the firm needed specialized market study, operational, and IT diligence providers.
BluWave uses extensive knowledge and network to identify industry specific, PE-grade providers
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-gradediligenceneeds. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of the providers across all service functionsthat 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 operational, IT, and market study providers from our invitation-only Intelligent Network that fit their exacting needs.
Firm engages select providers to confidently assess target
Within less than 24 hours of the initial scoping call, the PE firm was introduced to select, exact-fit, PE-grade IT, market study, and operational diligence groupswith extensive experience in commercial roofing. The client selected their ideal choice for each service andthe PE firm was able to confidently assess the target company during their period of LOI. So pleased with BluWave’s quick insight and introductions to providers that were best-fit for each diligence need, the firm made it standard operating procedure to bring all of their diligence needs to BluWave moving forward. They knew this would ensure they would always connect with the best, PE-grade, specialized providers for any given need.
As part of an ongoing series, we’re sharing real-time trending topics we are hearing from our 500+ PE firm clients in our “In the Know” series. In our most recent installment, Consulting Manager, Scott Bellinger, covers due diligence for better deals – sharing the top due diligence resources we equip clients with and why firms come to us with their needs.
Interested in learning more about how we can support your diligence needs? Learn more in our Due Diligence hub.
Video transcript:
In the past few weeks, The BluWave Activity Index has shown that due diligence activity is picking up as we quickly approach Q4. Heightened deal activity means that it’s more vital than ever to ensure you’re utilizing diligence providers that can equip you with the unique insights you need to inform a wise investment decision. We quickly connect PE firms to specialized diligence providers that they need so that they don’t have to waste time vetting providers by availability, budget, and industry expertise. Here are some of the top diligence resources we are connecting our PE firm clients with.
First, commercial due diligence. Commercial diligence has become standard operating procedure for all of private equity, not just the large cap firms. With deal stakes high, investing in commercial due diligence upfront is vital. To maximize the output of commercial due diligence efforts. We connect firms with specialized providers by industry who already know the market. This allows them to dig in deeper, faster, and equip them with market and company insights generalist providers are not capable of.
Next is IT due diligence. Nowadays, every business has cybersecurity concerns. An unknown, as well as unaddressed cyber risk, can wreak havoc on an investment down the road. Proactive PE firms of all sizes are choosing to invest in IT due diligence efforts upfront so that they can preemptively address problems and challenges that could occur in the future. As the technology landscape constantly changes, so do the diligence providers in the space. In order to combat this for our clients, BluWave continuously maps the market in order to always be on the forefront of knowing what providers are best suited for what PE firms need at any given time.
And finally, operational diligence. Gone are the days where small process improvements in a portfolio company led to high returns. Now it is all about transformation. Ops due diligence providers go into a target company during the LOI phase to review their processes and begin identifying opportunities for growth so that you can hit the ground running on a well-developed value creation plan immediately post-close. We connect our clients with industry-specific providers they need so that they can gain the nuanced insight that can transform a company only industry veterans would glean. At BluWave, we are here to connect you with exact-fit, PE-grade diligence resources you need at the exact time you need them. If we can provide you with the resources you need to bolster your due diligence process, or if we can support any other third-party needs that you may have. Contact us at info@BluWave.net.
Partner needs technology diligence for software target
A PE firm partner came to us with a critical need for a technology diligence group that could assess a target software company. Hoping to close on the target company soon, the partner needed to evaluate the quality of the code, the transportability of the software, and the scalability of the software. They urgently needed a PE-grade technology diligence provider who could assess the company’s current software and advise a best practice plan for how the firm should move forward with the target.
BluWave has select providers that match exacting needs
Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade technology diligence needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of providers 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.
PE firm engaged their ideal provider to move forward with diligence efforts
Within 24 hours of the initial scoping call, the PE firm was introduced to two PE-grade tech diligence providers that specialized in the software industry. The client selected their ideal provider, and the PE firm was able to confidently evaluate the company’s software and its ability to scale. The technology diligence group not only evaluated the current software but was also equipped to provide the firm with recommendations for how to move forward.
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.
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.
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.
Every quarter we gather Vice Presidents in PE to discuss current industry topics and to offer these peers the chance to gather, share information, and decompress with one another. In our most recent event, we discussed how VPs are putting plans and resources in place in the face of a recession as well as how different firms are recruiting and optimizing associate talent.
These forums are invite-only and follow Chatham House Rules, so listed below are high-level takeaways only. If you are a private equity vice president and interested in joining fellow PE VPs during our next forum, you can register here.
Putting plans and resources in place in the face of a recession:
PE firms are looking inward at their portfolio to put together concrete gameplans that will help their portfolio companies not only survive but thrive as conditions change.
Gameplans vary depending on portco sectors and the stage of the hold period, but firms are ultimately looking for quick wins on their value creation roadmap.
PE firms are making strategic planning a priority with portcos.
Add-ons are top of mind for PE firms, and they are staying prepared to pursue them if/when the opportunities arise.
Recruiting and optimizing associate talent:
Tight labor markets have made hiring PE associates difficult, so firms are shifting tactics to competitively recruit talent and implement training programs that will help them quickly become contributing investment professionals.
PE firms are starting to travel to meet candidates in their respective cities vs. relying on candidates to come to them.
PE firms are looking for innovative ways to accelerate and streamline the hiring cycle.
Some PE firms are experimenting with tapping non-traditional candidates outside of investment banking.
We thoroughly enjoyed getting to gather with PE VPs to discuss these current industry hot 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 Deal Quarterbacks here.
