Independent seasoned CFOs
Most likely advantages for seasoned strategic advisory impact
May or may not offer cost-effective implementation leadership/management
Independent Controllers or Financial Planning & Analysis (FPA) professionals expressing CFO capabilities
Might be sufficient and lower cost for less complex situations
Might be more challenging to find qualified 1099 resources
National/Regional/Local firms consisting exclusively of CFOs
Might facilitate identifying best fit experience,
However, might lack a trusted relationship recommendation
National/Regional/Local firms offering outsource CFO, accounting/bookkeeping, and/or Financial Planning & Analysis (FPA)
Might provide cost-effective coordination of one source for accounting and finance support
However, might not have best fit cost-effective core competency for multiple roles (scope)
Especially might not have more seasoned CFOs
CPA/Outsource Accounting/Consulting firms offering CFO services
Might provide cost-effective solutions coordinating/expanding existing relationship trusted services
However, might not have best fit cost-effective CFOs with relevant and depth of experience
Especially might not have more seasoned CFOs
Who – Fractional (1099) CFO sources: Key Attributes
- Strategic (advisory) impact, and/or
- Implementation leadership and involvement (management) impact
- Relevant experience for:
a. profitability impact,
b. cash flow management impact,
c. business value/transition planning - Depth of experience
a. Same industry or related industry with similar financial dynamics
b. Attaining lending and/or equity financing funds
c. Comprehensive objective knowledge/assessment of business buyer view of ROI value/risk
d. Comprehensive objective knowledge/experience navigating the due diligence process
e. Years of proven CFO track record of success
Pros and Cons of “who” with respect to advisory and/or management scope are:
A. Advisory impact need may be less IF…
a. owner/CEO and other operational leaders have astute knowledge/experience with market pricing
strategy,
b. the company business model and growth aspirations are focused on a singular core competency
c. the company has excess cash or stable debt capacity to finance operations and growth,
d. long-term transition planning is NOT a priority
B. Management impact need may be less IF…
a. the company has a strong/solid Controller and/or accounting support,
b. the owner/CEO is receptive to AND cost/benefit merits upgrading existing accounting support OR
outsourcing accounting support,
c. company size and complexity merit cost/benefit of staff-level financial planning & analysis
Advantage(s) of “who” with respect to BOTH advisory and implementation scope are:
Size and complexity factors/conditions and/or priorities merit assessment of a fractional CFO solution that provides:
- strategic financial leadership advisory and implementation, especially for cost-effective scenario analyses for
strategic decisions and/or cost-effective margin analyses for pricing and/or operational efficiency strategy and
implementation actions, - objective assessment of alternative sources of financing, recommendations for cost effective sources, and
leadership implementation contributing to attaining funds,
a. Note that attaining funds may or may not require an intermediary/broker who specializes in finding
sources of funds, - a CFO with a proven M&A track record to provide cost effective objective and comprehensive transition planning
and process navigation.