Interim CFO Services:
How an Interim CFO Can Improve Your Company’s Results
InterimExecs matches companies with experienced, top-rated Chief Financial Officers. They arrive ready to lead companies experiencing financial crisis, rapid growth, or leadership gaps. We can have a highly qualified financial expert from our team on site in record time. This is Rapid Executive Deployment.
What is an Interim CFO?
An Interim CFO is a hands-on financial expert who comes into an organization for a specified period of time. Often, the interim CFO oversees financial operations for companies that have experienced an unexpected departure of the full-time CFO or where financial operations are not up to par. Interims also jump into situations where a company needs specific financial expertise for a project or initiative.
Interim CFOs are highly qualified c-suite executives with thick resumes and a record of success.
What are the Benefits of Hiring an Interim CFO?
An interim CFO is a management team member who does everything a full-time CFO does without the cost, long-term commitment, and time required to recruit and hire a new full-time CFO. An Interim CFO is not actually hired on as an employee, but serves in a contract-based role that is easy to scale up or scale back as need be.
Often, an Interim CFO is brought in to solve a particular financial problem, such as a cash flow crisis, strategic planning challenge, financial reporting issue, or to maximize value prior to a potential transaction or exit.
Because the executive takes on the CFO role on a temporary basis, it is easy to contract with an InterimExecs’ RED Team Interim CFO who is uniquely qualified to meet the needs of your organization. Whether the assignment is several months or several years, the Interim CFO will work to bring a project to completion. That often includes finding a permanent full-time replacement or mentoring someone internally to step into the future CFO role.
Very often they [acquired companies] don’t have a true CFO and that’s critical for us. We’re going to hire a full-time or a really strong CFO in every one of our companies, but you might not have that person ready to go on day one and so we’re going to bring in somebody on an interim basis.
-Chris Sheeran, Partner
Interim CFO Services
Private Equity Portfolio Companies
Thorough due diligence is the hallmark of success in the acquisition of or investment in a company. An Interim CFO can work with PE funds to lead diligence and, once the deal is complete, integrate financial systems, set up a financial reporting structure, oversee the bookkeeping and accounting teams, and work with a PE fund to optimize processes and ensure maximum future return on investment.
Financial Controls, Process & Procedure
Rapid growth often strains internal financial expertise and capabilities. An experienced Interim CFO can navigate growth challenges, such as Sarbanes Oxley Compliance (SOX), BPO, implementation of an ERP system, budgeting and forecasting, risk and compliance, and even identifying the right candidate to become the permanent CFO who will move the company forward.
Prepare for Exit or Transaction
A highly qualified financial professional is critical to the success of a company owner’s plan to sell, refinance, or acquire another company. That is especially true for companies that haven’t had to report to outside investors; a sale or merger may require a whole new level of financial reporting and accountability.
Distressed Financial Situations
A CFO with turnaround expertise is crucial when a company is out of covenant on loans, is losing revenue, or suspects fraud. The turnaround specialist assesses the cause of the distress and rapidly creates and implements a plan to address the crisis, whether that means negotiating with creditors, recapitalization, or even liquidation
Financial Planning and Analysis
Are you making or losing money? An Interim Chief Financial Officer can help an owner with cost accounting, putting into place sound financial systems and accounting procedures. No matter what type of company you own, interim CFO services can be critical in properly recognizing revenue, cash flow analysis, budget forecasting, and financial modeling so you no longer need to wonder which projects are profitable.
Preparing for IPO
An Interim CFO who has taken companies public brings invaluable experience with financial reporting, SEC rules, and other challenges, including evaluating underwriters, auditors, and other stakeholders; navigating through a roadshow; and launching your offering. Oftentimes Interim CFO jobs continue after the public offering as the organization sets up staffing and systems as a public company.
We needed help because we grew beyond the capacity to understand our company’s financial statements. Our Interim CFO asked questions we would have never asked ourselves, so it turned out to be a great learning experience. I wish I had done something like this sooner.
-Tom Glavin, Glavin Security Specialists
FAQs: Interim, Contract or Part Time CFO
InterimExecs RED Team includes top interim CFOs, part-time CFOs, and fractional CFOs who specialize in helping organizations through periods of change. We have screened thousands of executives to hand pick the best of the best. Our RED Team CFOs can parachute into a company in as little as 48 hours.
What types of companies do Interim CFOs work in?
Of all C-level leaders, perhaps the interim Chief Financial Officer is most adept at crossing from one industry to another. The product or service may change, but the need for financial discipline and sound accounting, systems, and policies is constant across industries and countries.
Interim CFOs, true senior level professionals, enter companies at every stage and situation, from startup to Fortune 500, distressed to rapid growth, and across industries from manufacturing to technology, business services, consumer goods, healthcare, hospital, and non-profit organizations.
Can I hire a CFO part-time?
Yes, outsourcing a CFO is a great answer for companies looking to implement a short-term project (i.e. financial projections and forecasting, mergers and acquisitions, financial controls, etc.) and for organizations in need of sophisticated financial leadership but not yet at a size or stage where they need a fully dedicated CFO. In those cases, a part time CFO, also known as a fractional CFO, can be a great solution.
Organizations can utilize a CFO for a fraction of their time whether hours or days, while still accessing top level executive strategy and leadership. Read more on the fractional model here.
How long is an Interim CFO assignment?
Generally, Interim CFO assignments range from 3 months to 2 years, with the average being 8-9 months. The timing depends upon the needs of an organization. An executive might come on board for a few months while the company searches for a permanent CFO. In smaller companies, the interim can serve in an ongoing role as a part-time or fractional CFO until the company grows to a size that it needs a full-time executive.
How are contracts with an interim or fractional CFO structured?
RED Team executives are deployed through InterimExecs placement arm. There is never an employee/employer relationship created and the assignment is focused on specific deliverables and results. Bringing on an interim executive is low risk and with a standard 30-day cancellation clause, you can scale up or scale back services as need be. We stand for happy executives, happy clients.