What an Interim CFO Does

When a private equity firm acquires a new portfolio company or experiences a leadership gap, the finance function becomes a critical execution lever. Interim CFOs provide immediate operational control, stability, and credibility during these transitional moments.

Typical mandates include:

• Taking ownership of financial operations, close processes, and investor reporting.
• Building and aligning budgets, forecasts, and KPIs to the value-creation plan.
• Supporting transactions and transitions—from diligence to post-close integration and exit readiness.
• Managing liquidity and cash flow, and establishing systems and controls fit for scale.

Why It Matters to Private Equity

The CFO role in PE-backed businesses is evolving from a scorekeeper to a strategic architect. In the first 90 days post-close, sponsors depend on the CFO to bring visibility, accuracy, and alignment between management and investors.

Industry insights:

• The average tenure of a CFO in PE-backed businesses is about 2.5 years, compared to 5.6 years in public companies.¹
• The first 90 days after acquisition are the most critical window to establish accurate reporting and investor confidence.²
• Since 2010, operational and strategic finance improvements—led by interim or transformation CFOs—have been responsible for much of private equity’s value creation, surpassing traditional financial engineering.³

Common Scenarios for Interim CFO Engagements

Unplanned turnover — A sudden CFO departure threatens reporting continuity and lender confidence.

Carve-out or integration — Systems, controls, and reporting need to be built from scratch.

Turnaround — Liquidity pressures demand a disciplined 13-week cash-flow cadence and cost-out execution.

Exit preparation — Finance must deliver audit-ready data, forecasts, and KPIs to support valuation.

FAQs

Q: How quickly can an interim CFO be deployed?
A: Typically within days or weeks, ensuring no disruption to close or reporting cycles.

Q: Is an interim CFO a placeholder?
A: No. The best interim CFOs act as transformation leaders—stabilizing operations and building durable systems for the next stage.

Q: What are key metrics for interim CFO success?
A: Cash-flow visibility, working-capital efficiency, reporting reliability, EBITDA margin expansion, and sponsor communication cadence.

Q: When should the transition to a permanent CFO begin?
A: Once systems, teams, and reporting are stable. The interim CFO often participates in onboarding the permanent hire.

Footnotes

1. Odgers Interim, “Why So Many CFOs Fail in Private Equity in Their First 18 Months.”
2. ZRG Partners, “CFO Playbook for Portfolio Companies.”
3. PwC, Private Equity Operating Partner Trend Report.
4. The People Space, “CHROs Linked to Big Wins in Private Equity Exits.”
5. TCG Consulting Group, “The Rising Importance of Human Capital in Private Equity.”
6. Spencer Stuart, “Is Your Next Role CHRO for a Private Equity Portfolio Company?”
7. PwC, Private Equity Operating Partner Trend Report.
8. Human Capital Strategies, “Embracing the Private Equity Mindset After Public Company Leadership.”