Human Capital Archives - Page 8 of 14

Technical Recruiter (IT): Find the Right Candidate Fast

May 18, 2023 Brad Gerick

What Does a Technical Recruiter Do?

A technical recruiter is in charge of finding, interviewing and selecting qualified candidates for technical roles like software engineering, data analysis and technical writing. They seek candidates who have the necessary skills to fill specialized positions in information technology, data science and engineering.

Technical recruiters work for either a company’s human resources department or a technical recruiting agency to fill open positions within a technology-focused company. Oftentimes, an expert technical recruiter who has experience across your industry can be the best way to find an exact-fit candidate, and fast.

“Any specialized recruiter is going to have a better network. They’ll also have a much better idea of ‘what good looks like’ and can help a hiring team calibrate the applicant pool more reliably,” says Houston Slatton, BluWave’s head of technology.

The digital revolution has emphasized the necessity for specialized roles within organizations, bringing to the fore the importance of technical recruiters. They possess an intricate knowledge of the necessary skills and experiences required for these roles and are adept at identifying candidates that align seamlessly with the organization’s unique needs.

Access Technology Resources

Benefits of Technical Recruiters

These recruiters bring a nuanced understanding of the rapidly evolving tech industry and the dynamic skills it demands. This expertise allows them to source candidates who are a perfect fit for both the role and your organization’s culture.

Another substantial benefit of partnering with a technical recruiter is their extensive network within the tech industry. This serves as a rich reservoir for discovering both active and passive talent, often making the difference in finding the ideal candidate.

READ MORE: Hire an Interim CHRO

Moreover, IT-focused recruiters can provide significant time and cost savings. The recruitment process, particularly for specialized roles, can be both time-consuming and expensive. By leveraging their experience, technical recruiters can speed up the hiring process, ensuring you secure the best candidate on the market.

How BluWave Works

“We used a recruiter to hire a data engineer, and that recruiter knows the products in our tech stack, so he can better vet the candidates before we talk to them,” Slatton says. “In addition, he knows what the job entails so he can better ascertain up front whether what’s in a resume will actually be a good fit for us because he’s spent so much time in the data space.”

READ MORE: Interim CHRO Interviews

Technical Recruiter vs. Regular Recruiter: Differences

While both technical recruiters and regular recruiters play essential roles in the hiring process, their areas of focus differ significantly. A technical recruiter specializes in filling technical roles such as software development, product management and data science. They hold a comprehensive understanding of the tech industry, with responsibilities including interviewing and assessing candidates for specific technical proficiencies.

CASE STUDY: IT Assessment, Leadership Hire for Business Services

On the other hand, regular recruiters manage the hiring process for a variety of job roles not confined to the tech industry. They may work independently or as part of a company’s talent acquisition department, managing the complete recruitment process for various open roles across different industries.

Securing the Right Technical Recruiter

Connecting with the ideal technical recruiter often involves multiple approaches. While you may consider seeking recommendations from trusted industry associates, performing online searches for technical recruiting firms, or even attending industry events to meet technical recruiters, these methods can be time-consuming, costly and don’t always yield the desired results.

The most efficient and effective route is to collaborate with an outside resource that can connect you with a tailor-made third party. BluWave’s invite-only network exists for just that purpose.

We offer a bridge to industry-specific, expertly vetted tech recruiters who can guide your recruitment process. By working with our research and operations team, you can focus on running your business.

Access Technology Resources

CFO Executive Search Firms: Financial Executive Specialists

May 10, 2023 Brad Gerick

The Importance of Hiring a Strong CFO

The role of a CFO is similar to a treasurer or controller because they are responsible for managing the finance and accounting divisions and for ensuring that the company’s financial reports are accurate and completed in a timely manner. CFOs also manage the company’s financial planning and analysis, risk management and overall financial strategy.

Hiring a strong CFO is essential for an organization to thrive. Some of the benefits include access to years of experience and industry expertise, the ability to predict and forecast instead of reacting, improved processes and internal systems, better data and accurate reporting.

It’s no wonder that such an important role can often be so difficult (and expensive) to fill.

That’s why it’s pays to work with a tailor-made recruiting firm that’s familiar with your specific industry and situation. The Business Builders’ Network is full of exactly these kind of organizations.

In this article, we will discuss the qualities to look for in a CFO, how to hire the right one for your company, the role of CFO executive search firms in the hiring process and the average CFO salary.

Chief Financial Officers Resources

What to Look for in a CFO

Skills and Experience

A strong background in finance and accounting is crucial for a CFO. Their deep understanding of financial concepts and ability to analyze financial data will help them manage the finance and accounting divisions effectively. CFOs should also have experience in leading teams and collaborating with other executives, as they are responsible for ensuring the accuracy and timeliness of the company’s financial reports, financial planning and analysis, risk management, and financial strategy.

Leadership and Communication Skills

The ability to lead teams and communicate effectively with other executives is essential for a CFO. Possessing strong leadership and communication skills enables them to convey financial information to non-financial stakeholders. Since they are responsible for managing the finance and accounting divisions, CFOs play a critical role in ensuring the company’s financial reports are accurate, completed in a timely manner, and effectively support financial planning, analysis, risk management, and strategy.

Financial Acumen

In addition to having a deep understanding of financial concepts, a CFO should demonstrate strong financial acumen. They need to be able to analyze financial data and communicate their findings to non-financial stakeholders. As the person responsible for managing the finance and accounting divisions, a CFO ensures the accuracy and timeliness of the company’s financial reports while overseeing financial planning and analysis, risk management, and financial strategy.

Specialized Recruiter Resources

Strategic Thinking Skills

The ability to think strategically and develop long-term financial plans is another essential quality for a CFO. A strong strategic thinker can communicate financial information to non-financial stakeholders, which is vital for their role in managing the finance and accounting divisions. CFOs are responsible for ensuring the company’s financial reports are accurate and completed in a timely manner, and they play a significant role in financial planning, analysis, risk management, and financial strategy.

Industry Knowledge

Having specific industry knowledge allows a CFO to better understand the context in which the company operates. This knowledge enables them to communicate financial information to non-financial stakeholders effectively. As the manager of the finance and accounting divisions, a CFO must ensure the company’s financial reports are accurate and completed in a timely manner while overseeing financial planning and analysis, risk management, and financial strategy.

Cultural Fit

It’s essential for a CFO to be a good cultural fit within the company. This means they should align with the company’s values, mission, and work environment. A CFO who shares the organization’s vision and can adapt to its culture will foster a positive and collaborative atmosphere, making it easier for them to work effectively with other team members and stakeholders. In addition, a strong cultural fit ensures that the CFO can effectively contribute to the company’s financial planning, analysis, risk management, and financial strategy while maintaining a harmonious working environment.

How BluWave Works

How to Hire a CFO

Create a Job Description

Creating a job description is the first step in hiring a CFO. A job description is a document that outlines the responsibilities and qualifications for the position. It should include information about the company, the position, and the qualifications required for the position. The job description should also include information about the salary range and benefits package.

CASE STUDY: Connecting PE Firm with Top Talent for a Vital CFO Role in the Software Sector

The job description is important because it helps you attract the right candidates. It also helps you screen candidates to ensure that they have the necessary skills and experience for the position.

Identify Your Ideal Candidate

This step includes determining what skills and experience are required for the position. You should also consider the company’s culture and values when identifying your ideal candidate.

When identifying your ideal candidate, you should consider the following:

Skills and experience: You should identify the skills and experience required for the position. This includes technical skills as well as soft skills such as communication and leadership.
Company culture: You should consider the company’s culture and values when identifying your ideal candidate. This will help ensure that the candidate is a good fit for the company.

Conduct Interviews

Once you have identified your ideal candidate, you should conduct interviews to determine if they are a good fit for the position.

During the interview process, you should ask questions that will help you determine if the candidate has the necessary skills and experience for the position. You should also ask questions that will help you determine if the candidate is a good fit for the company’s culture and values.

Conduct Reference Checks

After conducting interviews, you should conduct reference checks to verify the candidate’s qualifications and experience.

CASE STUDY: Maintaining Rapid Healthcare Services Growth with Specialized CFO

During the reference check process, you should contact the candidate’s previous employers and ask questions about their performance and qualifications. This will help you determine if the candidate is a good fit for the position.

Make an Offer

Once you have completed all of the steps above, you can make an offer to your chosen candidate.

When making an offer, you should consider the candidate’s salary requirements and negotiate a salary that is fair and competitive. You should also consider other benefits such as health insurance, retirement plans, and vacation time.

Access Executive CFO Resources

CFO Executive Search Firms

A CFO executive search firm is a company that specializes in finding and recruiting top-level financial executives for businesses. The process of hiring a CFO executive search firm can be complicated and costly. However, an expertly matched executive recruiting firm can help with this process.

The staff at an executive search firm already has thorough knowledge of the industry and may already know candidates who are qualified for your position. Once you give them a detailed description of what you need in a CFO, they can search their community and find the best candidate. Engage with recruiters and executive search firms to hire the CFO based on your predetermined requirements.

ALSO SEE: Private Equity Recruiting: PortCo Resources

The benefits of hiring a CFO executive search firm include saving time and stress. The challenges of hiring a CFO executive search firm include ensuring that you are working with the correct entity and that your preferred search firm must demonstrate expertise.

CFO Salary

The average yearly salary of a chief financial officer (CFO) can vary based on a number of factors, but the median compensation for a CFO in the U.S. as of May 2021 was nearly $400,000 per year.

The primary factors that impact the median salary of a CFO include geographic location, the size and complexity of the organization and the candidate’s experience and qualifications. Base salary and bonuses make up roughly 80 percent of the total compensation a CFO should receive within a given year. The other areas of compensation are bonuses and benefits, as well as perks.

Hiring a strong CFO is crucial for the financial success and stability of your company. To hire the right person for the job, you must focus on identifying the necessary skills, experience and cultural fit that align with your organization’s needs. By utilizing CFO executive search firms, you can make this process easier and more efficient, ensuring you find the best candidate for your company.

BluWave has the resources and expertise to connect you with the right executive search firms to select your ideal CFO. With a vast network of professionals and deep knowledge of various industries, BluWave can help you streamline the hiring process and ensure you find the perfect match for your organization. Contact our research and operations team today to get started.

Karma School of Business Podcast: How to Hire a Private Equity-Grade CFO

Fiber Optics Company Building Out Executive Team for New Division

Service Area: Human Capital: Recruiters

Client Type: Portfolio Company

Service Provider Type: Telecommunications-Focused Recruitment Firm

Industry: Telecommunications: Wireless Internet, Fiber Optics

Need

Recruiters in Telecommunications Industry

The CFO of a telecommunications company that specializes in wireless internet needed help building out its executive team for a new division of its business.

Challenge

Specialized executive search firm needed

Looking to better serve its customers, the CFO sought an executive search firm that specialized in telecom and fiber. They saw a big growth opportunity in their market and wanted to move fast to build out its leadership team.

How BluWave Helped

The Business Builders’ Network

After a scoping call with our research and operations team, we presented multiple executive search firms that were experienced serving fiber optics companies.

Result

Specialized firm engaged to build out executive team

One of our most-used service providers was selected to kick off the process of building out the executive team. They signed on for a three-month engagement to help the telecommunications company hit the ground running with its new telecom ambitions.

Q1 2023 BluWave Insights: HR, Tech Take Center Stage

April 20, 2023 Brad Gerick

Every quarter our team analyzes the projects we work on with our 500+ PE firm clients to get a bird’s eye view of the market. We recently compiled our Q1 2023 findings into our BluWave Insights Report. You can request your copy and our client coverage team will be in touch.

Key findings from Q1 ’23 include:

Value creation activity is at an all-time high, matching Q1 2022.
Human capital remains PE’s primary area of focus at 45% of all Q1 activity, also matching an all-time high.
Technology remains a priority at 11% of all Q1 PE activity.

Learn more about the insights we gleaned from Q1:

We can support your value creation needs, human capital needs, technology needs, sales & marketing needs and more.

Employee Management Softwares: 13 Reasons To Use Them

April 13, 2023 Brad Gerick

Employee management softwares – or human capital management systems – are a suite of applications that helps businesses automate and streamline their HR processes, from recruitment to payroll.

Here are some reasons why you should use them.

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READ MORE: Hire an Interim CHRO

HCM Systems Benefits

Streamlined automation. Embrace efficiency with modern employee management software that automates labor-intensive tasks such as payroll processing, benefits administration and performance reviews, saving time and resources while improving accuracy.
Seamless communication. Foster collaboration and engagement with robust communication channels offered by employee management software, including instant messaging, email and video conferencing, enabling smooth communication between employees and managers.
Efficient performance tracking. Stay on top of employee performance with comprehensive tracking features, including goal setting, performance reviews and feedback mechanisms, allowing managers to objectively evaluate performance and provide targeted support.
Effortless time-off management. Simplify time-off management with user-friendly features such as leave requests, approvals and tracking, ensuring employees take the necessary time off while preventing staffing issues.
Streamlined onboarding. Expedite the onboarding process with employee management software that provides tools such as employee profiles, training materials and onboarding checklists, helping new hires quickly adapt to their roles.
Effective benefits administration. Simplify benefits administration with features such as benefit enrollment, eligibility tracking and claims processing, ensuring employees have access to the benefits they need without administrative hassle.
Regulatory compliance made easy. Ensure compliance with labor laws and regulations with employee management software that offers features such as time tracking, payroll processing and leave management, minimizing the risk of fines and penalties.
Data-driven decision making. Empower informed decision making with employee management software that provides reporting, analytics and forecasting tools, enabling data-driven insights for optimizing operations.
Improved employee satisfaction. Boost employee satisfaction and engagement with features such as surveys, feedback and recognition offered by employee management software, resulting in a more motivated and productive workforce.
Enhanced talent management. Attract and retain top talent with user-friendly interfaces, mobile apps and social media integration offered by employee management software, ensuring a skilled and engaged workforce.
Efficient time tracking. Effectively manage employee hours, attendance, and overtime with accurate time tracking features, improving workforce management and payroll accuracy.
Streamlined employee relations. Foster a positive work environment with employee management software that offers features for tracking and managing employee relations, such as conflict resolution, performance improvement plans and employee feedback.
Reduced litigation risk. Mitigate litigation risks with employee management software that ensures compliance with labor laws, manages employee records and documentation and provides a clear audit trail of employee interactions, reducing legal exposure and protecting the business from potential lawsuits.

Start Your Employee Management Project

Choosing Employee Management Softwares

Features: The first step is to identify the features that are important to your company. Do you need a software that can handle payroll, benefits, recruiting and performance management? Or do you need a more specialized solution?
Scalability: As your company grows, you will need a software that can scale with you. Make sure to choose a program that can accommodate your future needs.
Ease of use: Employee management software can be complex, so it is important to choose a software that is easy to use. Look for one with a user-friendly interface and that is customizable to your company’s needs.
Security: Employee management software can contain sensitive data, so it is important to choose a system that is secure. Make sure to choose a software that has been certified by a reputable security organization.
Cost: Employee management software can be expensive, so it is important have your budget in mind. Make sure to compare prices and features before making a decision.
Situational Capabilities: You may need a software than can cater to your specific situation. For example, perhaps they need experience with unionized businesses. Be up front about that as you send out your RFPs and make your evaluations.

READ MORE: The Interim CHRO Interview

Best HCM Systems

The “best” option is going to depend on your company, industry and exact situation. While we can’t choose one “best” software for you, here are some of the more popular cloud-based HCM systems (in no particular order) and a brief overview of each:

Workday is a human capital management software suite that provides a variety of features for managing employees, including payroll, benefits, recruiting and performance management.
SAP SuccessFactors is another HCM system suite that offers a wide range of features for managing employees, including recruiting, onboarding, performance management and compensation.
Oracle HCM Cloud is a suite that provides a variety of features for managing employees, including payroll, benefits, recruiting and performance management.
PeopleFluent is a software that offers a wide range of features for managing employees, including recruiting, onboarding, performance management and compensation.
Ultimate Software is a cloud-based HCM that provides a variety of features for managing employees, including payroll, benefits, recruiting and performance management.
Monday.com is a little different than the others in that its more commonly used for project management than tracking employee data. (Though you can use it for that, too.) It has a user-friendly interface and can be customized to your company’s needs. It’s also a cost-effective solution for businesses that need a cloud-based HCM system.

Are you ready to upgrade your HCM system, or perhaps implement one for the first time?

Private and public companies as well as private equity firms and their portfolio companies can all reap the benefits of choosing the right employee management softwares.

Fortunately, you’re not in this alone. The Business Builders’ Network is full of experts who have helped companies like yours with industry specific-decisions about their human capital management software.

If you’re ready to take the next step and want an exact-fit third party to accompany you through the process, from start to finish, contact our research and operations team.

We already know the best possible partners for your niche-specific needs, and we’ll connect you in less than 24 hours after our initial scoping call.

Start Your Employee Management Project

HR, Tech Take Center Stage in Q1: Private Equity Industry Update

Offshoring Experts Sought To Save Time, Lower Portco’s Operation Costs

Service Area: Offshoring

Client Type: Lower-Middle Market Private Equity Firm

Service Provider Type: Business Process Outsourcing – Offshoring

Industry: Human Capital

Need

Business Process Outsourcing – Offshoring

PE firm sought offshore assistance with manual tasks to increase efficiency, lower costs and focus on higher order.

Challenge

Finding an offshore partner to free up resources

The PE firm sought an entity that could get them as close as possible to a turnkey finished product for several daily manual tasks performed by one of their human-capital focused portcos. Many of their work streams were labor-intensive, and the right offshoring partner would help them free up those resources to focus on higher order while lowering costs.

How BluWave Helped

The Business Builders’ Network

After the initial scoping call to understand the PE firm’s specific needs, we reached to a pair of exact-fit resources that we knew would be great matches for this project. The firm evaluated them both and engaged with a BluWave-grade service provider that has completed multiple successful projects for other PE firms.

Result

Lowered operation costs and freed up resources

We connected the private equity firm to a trusted, proven service provider that specializes in offshoring. They tapped into their network in high-growth emerging cities, allowing the firm to lower its operations costs and connect with tenured expertise in a less competitive environment. The manual processes were offshored allowing the PE firm to reinvest the time and money it saved its portco.

Charlie Gifford, New Heritage, Getting to Yes Through Differentiation in Private Equity

SVB Bank Crisis: What Will Happen Next and How Private Equity Will Reframe Crisis into Opportunity

Human Capital Forum: C-Suite Talent, Increasing Retention

March 15, 2023 Brad Gerick

How do you identify top C-suite talent? And what’s the best way to improve culture and retention for existing employees?

These were among the most popular topics in the latest BluWave-hosted Human Capital forum March 9.

Megan Ryan Kanefsky of J.F. Lehman & Company, Kristin Brown Patrick of New State Capital Partners and Abby Wilson of Transom Capital Group joined BluWave as panelists for the virtual event.

SIGN UP for the next Human Capital Forum

Here are some highlights of what was discussed.

Identifying Top C-Suite Talent

The panelists discussed the importance of creating scorecard assessments for all executive positions to test technical aptitude.

Incorporating objective criteria, such as personality assessments, can also be helpful. For example, when hiring a CFO, the process might involve screening for cultural fit, sending an assessment that models financial statements with errors and conducting behavioral interviews with key stakeholders.

To ensure success, it’s essential to communicate effectively with candidates and get alignment on what you’re looking for from the onset. Putting in the work upfront can help build a high-performing executive team that drives company growth and success.

SIGN UP for the next Human Capital Forum

Assessing Talent to Value

Hiring deeper within the organization – beyond the C-suite – also came up. The panelists said that one important aspect of the hiring process is using data to evaluate talent.

Objective criteria like cognitive abilities and behavioral fit for the role can help companies focus on hiring for aptitude and growth potential rather than just credentials. Encouraging a mindset of thinking outside the box can also help identify junior talent with a strong aptitude to learn and grow.

While it may take longer to find smarter and better hires, these candidates are more likely to stay and contribute to the growth and success of the company.

Improving Retention and Culture

Creating a positive and engaging work culture – vital to retaining top talent – was the third and final topic the panelists discussed.

One way to encourage employee buy-in and create a sense of ownership is to offer profit interests to all employees, not just top executives. This can motivate team members as they feel invested in the success of the company. Leadership programs for middle managers and director-level employees can also have a significant impact on retention rates.

Regular standing events create a sense of loyalty to the organization, too. For example, weekly lunches or bi-weekly events can encourage collaboration and give different levels of the organization opportunities to interact. This can foster a sense of community and help create a more positive work environment.

Simple acts of recognition and gratitude can also go a long way toward building a more positive culture, the panelists said.

SIGN UP for the next Human Capital Forum

This event was conducted with the Chatham House Rule in place.

Interim CEO for Manufacturing Company Seeking Permanent Replacement

Service Area: Interim CEO

Client Type: Upper-Middle Market Private Equity Firm

Service Provider Type: Interim Executive with Manufacturing Expertise

Industry: Manufacturing – Glass

Need

Interim CEO

Struggling to get the right CEO in place for its portco, the PE firm needed a stopgap while it prepared an internal candidate to take over as its long-term chief executive officer.

Challenge

Underperforming Portco

A glass company with a great product line couldn’t keep up with consumer demand. After years of underperformance throughout the holding period, the PE firm was underwater on its investment. Having broken covenants with its bank while battling labor and equipment issues, the team was desperate for a quick turnaround.

They identified a strong internal candidate to take over in the long run, but he needed some guidance to grow into the role. To help him get up to speed, they needed an interim CEO who could serve as a mentor while refining operations at multiple plants across the U.S.

How BluWave Helped

The Business Builders’ Network

The BluWave Vetted™ Business Builders’ Network features a deep bench of hand-selected interim executives, ready to step into a new role on short notice. We immediately contacted the best and brightest leadership talent in the manufacturing industry from within our network and presented a short list of candidates that same week.

The team’s top choice was identified just one day after the initial scoping call, and the interim CEO stepped into the role shortly after. We maintained contact with both the temporary executive as well as the PE firm throughout the entire engagement – and beyond – to ensure the relationship was fruitful.

Result

The veteran executive righted the ship during a six-month stint, buying the PE firm time to name a full-time CEO

The career interim executive hit the ground running and brought stability to the portco. In the meantime, the private equity firm identified and groomed its permanent replacement from within.

The interim executive we provided from our PE-grade network stepped in and mentored the presumptive leader to prepare them to take the reins. At the end of the six-month engagement, the transition was complete and the full-time CEO remains in place to this day as the company continues to grow. Now the PE firm can focus on winding down its holding period and preparing the manufacturing company for sale.

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.

A man wearing a suit sitting at a desk with an open gray laptop, a white coffee mug and papers and folders. He's looking down and the desk and looks very stressed.

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.

Access Interim CFO Resources

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.

How BluWave Works

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.”

Access Interim CFO Resources

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: Interim CFO Elevates Real Estate Search Engine’s Financial Strategy

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.

How BluWave Works