Brentwood Search

In the Economic Meltdown Do You Have the Right CFO?

During the past few years companies have seen unprecedented growth.  Mergers and acquisitions were the word of the day.  Private equity companies acquired nascent companies, built them, and flipped them, realizing great profits.   It was like shooting fish in the barrel for top financial executives as they raked in extraordinary profits.   All was right with the world, and private equity firms received record return on their investments.  That was then.

With the recent economic downturn, the whole game has changed.    Not only are the quick turn profits drying up, but many private equity firms are finding that their portfolio companies are facing extreme challenges.   And a failure of a portfolio company creates real challenges for any private equity firm.   Many firms are reassessing their needs in light of the current climate.

A great “growth” CFO often cannot make the transition and become a CFO that will know how to rein in costs, how to restructure a firm, or how to keep a firm moving forward.   Often in these situations a firm’s best course of action is to replace its CFO.   The specific set of skills that are needed are often found in executives who have experience in knowing where and how to trim, where and how to lay a stronger foundation for future growth.

Marcia Basichis, recruiter with Steinbrun Hughes executive search, has seen an increased demand or executives who are experienced in helping companies weather such rocky times.   “We are now being retained to bring in Chief Financial Officers, who can grow companies organically, bringing real value to the bottom line.   Often restructuring CFOs have learned these skills through hard won experience in other downturns.  Picking the right candidate to guide your financial organization can mean the difference between survival and bankruptcy.”

Basichis added that Steinbrun Hughes is hired to bring in consultants on contract as well.  She noted that this is especially effective when a company needs immediate action.  Such contracting assignments can actually run concurrent with a search for a permanent CFO replacement.

Adaptability in changing times is essential for companies in challenging times   Making sure you have the right personnel in place can lead to difficult choices, but may be a company’s only choice.

No Comments yet »

RSS feed for comments on this post. TrackBack URI

Leave a comment