Gent & Associates

Recruiting a CFO to Lead a PE-Backed Company to a Successful Exit

A private equity-backed manufacturing and services company with $150 million in annual revenue engaged us to find a CFO to prepare the company for a successful exit. With a goal of selling in 18 months, the firm required a financial leader capable of optimizing valuation, enhancing operations, and positioning the company attractively to buyers.

Client Overview

The client, a PE-backed manufacturing and services firm, needed a CFO with specialized expertise in leading a PE backed company to a successful exit within an aggressive 18 month time-line.

Challenges

Specialized Experience: Required expertise in private equity exits, financial modeling, and managing due diligence.
Accelerated Time-line: Only 18 months to optimize operations and prepare for a sale.
Cultural Fit: Needed alignment with the results-driven PE ethos and the company collaborative culture.

Strategy

Role Definition: Worked with PE investors and the CEO to define a profile emphasizing exit strategies, buyer negotiations, and compliance.
Targeted Search: Leveraged our network to identify candidates with proven private equity exit experience and sell-side expertise.
Assessment and Selection: Evaluated technical and strategic capabilities alongside cultural fit through tailored assessments.
Timely Placement: Presented a shortlist within four weeks and completed the search in under eight weeks.

Outcome

Successful Placement: Hired a CFO with 20+ years of experience, including leading two firms through M&A exits.
Strategic Initiatives:
- Identified and implemented in cost-saving opportunities.
- Streamlined financial reporting and operational processes.
- Improved EBITDA
Accelerated Exit: Achieved acquisition by a strategic buyer within nine months which was 9 months ahead of anticipated exit schedule.

Key Takeaways

This case demonstrates the value of aligning executive talent with strategic goals. A CFO with specialized expertise in exits can accelerate time-lines and significantly enhance valuation in high-stakes, time-sensitive scenarios.