The role of the Chief Financial Officer has undergone a dramatic transformation over the past decade. No longer confined to ensuring accurate books and clean audits, today’s CFOs are expected to be strategic partners to CEOs, board members, and investors.
This evolution is particularly pronounced in private equity-backed companies, where CFOs must navigate unique challenges and expectations that differ significantly from their corporate counterparts.
Longtime Consero client, Scott Sanders, CFO of Broadway Technology, a software and fintech company backed by Long Ridge Equity, BC Partners, and HPS Investment Partners, shared invaluable insights into this transformation. His journey from Fortune 500 companies to a PE-backed software firm offers a roadmap for finance leaders navigating similar transitions.
The Expanding Scope: From Narrow Focus to End-to-End Responsibility
The modern CFO’s role extends beyond traditional financial management. Scott’s career trajectory illustrates this evolution perfectly, moving from specialized finance roles at Dell to comprehensive leadership at Broadway Technology.
“My job has really evolved into doing all the M&A which is much more strategic, doing projects like opening up legal entities in India so we can hire developers, all the due diligence work with private equity firms.”
This progression from narrowly defined responsibilities to broad strategic ownership represents the new reality for CFOs in growth-stage companies.
Today’s finance leaders must be equally comfortable with:
- Discussing cash flow forecasts and financial metrics
- Leading international expansion initiatives
- Presenting growth strategies to sophisticated investors
- mManaging complex M&A transactions
- Overseeing technology implementations
The 50/50 Rule: Balancing Operations and Strategy
One of the most challenging aspects of the modern CFO role is striking the right balance between operational excellence and strategic leadership. Scott advocates for a deliberate 50/50 split between these two critical areas.
“It may sound a little cliche but I try to work 50/50. I do think I have to be heavily involved and take ownership for the operational performance and outcomes.”
This balanced approach ensures that fundamental finance operations remain solid while CFOs dedicate substantial time to value-creating activities.
Strategic activities that demand CFO attention include:
- FP&A and financial modeling
- Board presentations and investor relations
- M&A activity and due diligence
- Strategic planning and business partnering
- Technology evaluation and implementation
Mastering the PE Playbook: Building Confidence Through Predictability
Working with private equity sponsors requires a different mindset compared to corporate finance roles. The relationship is more intimate, the scrutiny more intense, and the expectations more clearly defined.
Success in PE-backed environments requires CFOs to master several key disciplines:
Accurate Forecasting:
- Develop achievable and attainable projections
- Build predictable financial models
- Demonstrate high probability of success
Consistent Delivery:
- Meet projections monthly without fail
- Build confidence through reliability
- Maintain transparent communication
“Give them projections that are achievable… and then monthly meeting those projections so you’re building confidence.”
Accelerating Due Diligence: From Days to Hours
In the fast-paced world of private equity, the ability to respond quickly to due diligence requests can make or break deals. Modern CFOs must be prepared to turn around complex financial analyses in remarkably short timeframes.
“I’ll get two pages of CFO questions and then within a day or two I need to be back on a call live walking through the answers.”
The key to rapid response lies in having:
- Organized transactional support documentation
- Well-maintained data rooms
- Documented processes and procedures
- Teams that can mobilize quickly across time zones
Scott’s approach leverages Consero’s global teams for maximum efficiency:
“I send them the questions the night before, I can get up early the next morning… it’ll be eighty percent complete.”
This level of responsiveness requires not just personal expertise but also robust systems and reliable support teams.
Solving the Talent Challenge: Scalability Without the Headaches
The current talent market presents significant challenges for growing companies. CFOs report spending up to a third of their time on hiring, training, and managing staff.
Scott’s approach with Consero’s Finance as a Service (FaaS) offers a compelling alternative:
“I don’t have to do any of it… I don’t have to recruit, I don’t have to spend hiring fees, I don’t have to train the person.”
Benefits of this scalable model include:
- No recruitment costs or time investment
- Seamless staff transitions and backfills
- Access to 1,000+ trained professionals
- Consistent service levels despite turnover
- Freedom to focus on strategic priorities
This approach allows CFOs to maintain operational excellence without the typical disruptions associated with staff changes.
Managing Global Complexity: Systems and Processes at Scale
As companies expand internationally, CFOs face increasing complexity. Success requires managing multiple entities, currencies, and compliance requirements simultaneously.
Modern CFOs must orchestrate:
- Multi-currency operations
- International payroll systems
- Global entity management
- Cross-border compliance
- Consolidated reporting
The key lies in leveraging the right partnerships and technology infrastructure. Consero includes everything from cash forecasting to receivables management, all integrated into a cohesive system.
Partnering for Strategic Success
The evolution from traditional finance leadership to strategic CFO is essential for success in today’s competitive, PE-driven marketplace.
As Scott’s experience demonstrates, the most successful CFOs maintain operational excellence while dedicating significant time to strategic initiatives that drive real value.
For CFOs navigating PE-backed growth, having the right support infrastructure is critical. This is where Consero’s FaaS model becomes a game-changer.
Ready to transform your finance function and unlock your strategic potential?
Consero specializes in providing PE-backed companies with Fortune 500-quality finance and accounting services. Our proven model has helped hundreds of CFOs like Scott balance operational excellence with strategic leadership.
Request a consultation to discover how Consero can help you:
- Reduce finance and accounting costs while improving quality
- Accelerate month-end close and reporting cycles
- Scale seamlessly through acquisitions and international expansion
- Free up 50% more time for strategic initiatives
- Access a team of 1,000+ finance professionals without hiring headaches
Don’t let operational demands hold you back from being the strategic partner your CEO and investors need. Join hundreds of PE-backed CFOs who have already made the transformation with Consero.
