Gent & Associates

Controller Search for a Lower Middle Market PE-Backed Firm

A private equity-backed manufacturing firm with $20 million in annual revenue engaged us to identify its first financial leader. Following its first institutional capital raise, the company sought a Controller to establish a formal financial infrastructure, ensure compliance with PE reporting standards, and support scaling efforts. We have successfully completed this type of search numerous times across various industries, including Manufacturing, Consumer, SaaS, Services, Healthcare and more.

Client Overview

The client, a PE-backed manufacturing firm, needed a Controller to lead its financial transformation, balancing tactical responsibilities with strategic growth initiatives in an entrepreneurial setting.

Challenges

First-Time Financial Leadership: No established finance function or processes, requiring a hands-on leader to build from the ground up.
Private Equity Expertise: Needed a candidate adept at meeting private equity standards for reporting and analysis.
Strategic and Tactical Role: Balancing operational accounting tasks with long-term financial planning and vision.
Cultural Fit: Integrating into a fast-paced, entrepreneurial environment while introducing structure and discipline.

Strategy

Defining the Role: Collaborated with the PE firm and CEO to outline responsibilities, focusing on financial infrastructure, reporting, and operational efficiency.
Targeted Candidate Sourcing: Identified professionals with experience in private equity-backed environments and expertise in lower middle market firms, emphasizing technical accounting skills and ERP implementation.
Screening and Evaluation: Assessed technical skills such as GAAP, budgeting, forecasting, and reporting, along with the ability to operate independently.
Cultural Alignment: Conducted behavioral interviews to ensure candidates could thrive in a fast-moving, entrepreneurial environment.

Outcome

Placement: Hired a CPA with 10 years of experience in private equity-backed lower middle market firms, with a proven track record of building financial infrastructure.
Immediate Impact:
- Implemented an ERP system, improving financial reporting accuracy and efficiency.
- Established month-end close processes, reducing close time from 30 to 10 days.
- Created a financial reporting package for private equity investors, including KPIs and cash flow forecasting.
Strategic Contributions:
- Identified cost-saving opportunities that increased EBITDA by 10%.
- Supported the CEO with actionable financial insights for board meetings.
- Laid the groundwork for a future audit to position the company for growth and potential M&A activity.

Key Takeaways

This case illustrates how placing the right financial leader can transform a private equity-backed company by establishing essential processes, driving value, and aligning operations with investor expectations. A tailored search and strategic placement deliver long-term impact and scalability.