5 Essential Strategies for Supporting CFOs

In private equity-backed companies, CFOs are more than financial experts—they’re strategic partners integral to value creation. From recruitment to onboarding and beyond, ensuring that your CFO is set up for long-term success is key.  

JM Search recently hosted an interactive webinar on this very topic, where we spoke to a panel of industry experts about the critical role CFOs play in private equity-backed businesses.  

Below, we’ve summarized key takeaways from the panel discussion, which covered best practices, strategic insights, and the common challenges organizations face when assessing and developing CFOs, from recruitment to retention and value creation.  

1. Strategic Recruitment

The decision to bring in a new CFO is often driven by a range of factors, from underperformance to the need for new capabilities, such as M&A expertise. During recruitment, it’s essential to clearly define the role, whether it’s a traditional CFO or a “CFO plus,” where additional responsibilities like overseeing IT or HR are involved. Building a profile based on company needs and growth stage is critical, as is ensuring alignment between the CFO, CEO, and private equity sponsor. A successful CFO must have a mix of financial acumen and leadership skills, including the ability to manage relationships across the organization and adapt to private equity’s fast-paced environment. 

“Within private-equity backed organizations, we’ve seen the move from a [tactical] CFO to a much more strategic mindset – being that strategic thought partner for the CEO, helping them to think about growth and setting that long-term vision and overall strategy beyond just the financials.” – Addam Marcotte, Managing Principal, FMG Leading 

2. Seamless Onboarding

Effective onboarding can make or break a CFO’s success. CFOs may be more likely to fail if they are thrown into high-pressure situations without the support they need to deliver on organizational goals. Tailored onboarding plans, coupled with coaching or mentorship, provide CFOs with the tools to build key relationships with the investment team board members, and the executive leadership. Additionally, organizations should utilize onboarding to ensure that the CFO has a clear roadmap for their first 90 days and access to resources to succeed. 

“Onboarding [often] can be overlooked… the myth of culture fit is that you can bring in a mature executive and they will just automatically fit into the company, and that’s a good hire. I think [a new CFO] actually needs to acclimate to a new culture, and taking the time to learn goes both ways.” – Alice Mann, Founder, Mann Partners 

3. Retention Strategies

To retain top CFO talent, it’s essential to keep them challenged and engaged. Offering opportunities for the CFO to expand their role, whether by taking on more operational responsibilities or becoming a more strategic leader are ways to do this. CFOs should also be proactive in identifying and addressing company bottlenecks, rather than waiting for assignments from the board or CEO. When CFOs feel valued and aligned with the strategic vision of the company, they are more likely to stay and continue contributing to its growth. 

“I’ve been a PE-backed CFO, and I have yet to meet one that is not challenged. As a CFO, you are going to see things that are working and not working within the company, and a lot of it is up to you. How do you get more involved? How do you find your voice and your ability to affect change in those areas? And that is always very challenging and interesting.” – Sagit Halpern, Financial Operations Advisor, Pamlico Capital  

4. Team Build-Out

A CFO’s success depends largely on the strength of their team. Inheriting an underdeveloped team can be a challenge that hinders growth, so it’s crucial for CFOs to assess talent quickly and make necessary adjustments. Building a high-performing finance team that aligns with the company’s value creation strategy—whether focused on organic growth or M&A—is critical. Strong cross-functional collaboration between finance and other departments is also essential for driving business priorities. 

“A lot of clients are looking for a CFO who can come in and do a lot. And they can, but things [often] work out better when [team build out] is a more collaborative effort. Talking about the future state of the business and understanding that a CFO is likely going to have to build at some point…the earlier that conversation can be had at the board level or with the CFO, CEO, and sponsor, the better.” – Brian Dwyer, Partner, CFO Practice at JM Search

5. Value Creation

CFOs are instrumental in driving value creation. One key element is translating financial outcomes into meaningful insights for the board and executive team. This includes developing metrics to track performance and identifying risks and opportunities. Additionally, CFOs can play a strategic role in shaping organizational culture, helping to align day-to-day activities with long-term business goals. A strong CFO will not only manage the numbers but also act as a business partner who drives both financial and non-financial outcomes, such as operational efficiency and customer satisfaction. 

“M&A and diligence processes [offer] a lot of obvious value creation. But an area that’s often overlooked is the role the CFO can play as being a translator of the overall strategic and growth narrative of the organization.” – Addam Marcotte, Managing Principal, FMG Leading 

Recruiting and retaining top CFO talent in private equity-backed businesses requires a thoughtful, strategic approach. By focusing on key areas such as recruitment, onboarding, retention, team building, and value creation, companies can ensure that their CFOs are set up to succeed and drive long-term growth. The right CFO is a game-changer who turns financial results into actionable insights that propel the company forward. 

To learn more about attracting, retaining, and developing CFOs in the PE-backed space, listen to the full webinar replay here.