CFO is one of the earliest moves made by a PE firm upon adding a company to its portfolio. PE investors want to track the Investee Company’s financial situation as soon as they are invested. While the acquired portfolio company may have solid financial systems and reporting, the PE firm’s first priority will be to upgrade the financial structure and transparency by adding a new CFO.
PE investors prefer CFOs who have worked in both large and small corporates. The large corporate experience provides an understanding of sophisticated corporate systems and the experience in a small company helps to test and enhance the CFO’s resourcefulness and ability to deliver when removed from the expansive support systems of a large corporate setting. Continue reading