The importance of the CFO
PE funds place significant importance on the quality of your people, so will look at the experience and competence of your whole management team. This is especially pertinent for the chief financial officer (CFO) or finance director.
The right CFO will create value, not just protect it, because bankers and investors place a heavy emphasis on this role. or finance director. The right CFO will create value, not just protect it, because bankers and investors place a heavy emphasis on the role.
Their appetite to lend or invest will be enhanced when a strong CFO is running the company smoothly, and your business will be more likely to strike the right deal and get better terms.
For the CFO and the finance function, the most important thing to demonstrate to investors is the ability to make full use of the complex financial and management information needed to drive the transformation and growth that investors expect. After the deal, the PE fund will rely on your CFO and finance function to deliver high quality management information together with relevant key performance indicators (KPIs). Your PE investor will be focused on the future, closely watching earnings, profit, and operational cash generation against what are likely to be ambitious forecasts and budgets.