From CFO search and selection to value creation: a case study

A senior finance appointment is an investment in what the business needs next. For our client, that meant finding a CFO who could help bring together a complex, acquisitive business and prepare it for its next stage of growth and eventual exit.

In our previous insight article, Your next senior finance hire is a business investment. Are you treating it like one?, we referenced the business outcomes the role was tested against, as an example, both in terms of candidate selection and ROI.

Here’s the fuller story.

The business challenge

After its acquisition by a private equity fund, the group set out on a buy-and-build and transformation strategy to create a fully integrated global platform.

UK & Ireland sat at the centre of that plan. It was the group's largest and most complex region in a fragmented market with numerous acquisition opportunities.

Growth by acquisition had left its mark. The region was a collection of acquired businesses, brands and operating models. Finance, systems and reporting lacked scale and consistency, and the investors wanted tighter financial control, cash discipline and transparency. With more M&A, operational change and eventual exit planning on the horizon, the region needed a CFO who could stabilise, integrate and scale.

Defining the return

The CFO for UK & Ireland would sit on the regional leadership team and working closely with Group leadership, as well as the private equity investors. Before the role went to market, the business was clear about the outcomes the appointment had to deliver:

1. Lead finance across the group's largest international region, including a large, multi-layer finance organisation.
2. Support and execute a high-velocity acquisition and integration programme.
3. Strengthen controls, governance, cash flow and working capital discipline.
4. Deliver better board-level reporting and investor readiness.
5. Drive operational efficiency, margin expansion and synergy realisation.
6. Support longer-term value creation and exit preparation, as a strategic partner to the regional CEO and Group.

That clarity told us who to headhunt for.

Our thorough search and selection process resulted in the appointment of a CFO who had spent years in PE-owned, acquisitive businesses across manufacturing, services and international groups. They brought experience of leading large, multi-site finance teams, a track record in M&A, integration and synergy delivery, and expertise in shared services, systems transformation and data. Just as importantly, they had credibility with boards, investors and executive committees.

The appointment gave the region leadership, structure and confidence at a time of intense change.

The ROI

The CFO delivered against every outcome in the brief and more; the region played a pivotal part in a lucrative PE-to-PE sale. Because the outcomes were agreed at the start, progress could be clearly measured.

The result was a fully integrated regional platform that became a core driver of group EBITDA and valuation.

What this means for your next senior finance hire

Our client’s situation was specific, but the approach applies to any business-critical finance appointment.

• Start with the outcome. The brief described what the region needed finance to achieve, so the search looked for evidence of those results rather than a list of desirable qualities.
• Match the profile to the plan. A buy-and-build strategy heading for exit called for someone who had done it before in a PE-owned business. The investment case made that clear from the start.
• Use the outcomes as benchmarks. Agreed results gave the CFO, the regional CEO and the investors a shared view of what success looked like, and a fair way to judge progress.
• Expect the return to grow. The CFO's remit widened over time, eventually to interim Managing Director. A well-chosen appointment can create value beyond the original brief.

Before your next appointment, it is worth asking: what business outcome must this hire improve, what would delay or the wrong appointment cost, and how will you know it has worked?

Talk to us

If you are weighing up a senior finance appointment, we can help you build the investment case, map the market and uncover the people who can deliver the return you need.

To understand what a delayed or unsuccessful appointment could cost your business, download our finance capability risk map. Or get in touch for a confidential conversation about your plans.

Finance capability risk map 

In our next article, we will look at how to help a senior finance hire land well and turn a strong appointment into lasting performance.

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