Merger and Acquisitions CFO
CFOs are more than accountants. The role has shifted drastically in recent years with CFOs becoming a leader in overseeing mergers and acquisitions, utilising their financial expertise, soft skills, and stakeholder relations.
Mergers and acquisitions are a key part of the role of any CFO, including identifying potential future opportunities. The evolution of the role of CFO with growth in part-time and remote positions means that companies of all sizes can benefit from the expertise of an M&A CFO.
FD Capital is a leading financial recruitment agency, connecting start-ups, SMEs, and scaling companies with CFOs across the UK. An M&A CFO is a strategic thought partner who can unlock the potential of your business through mergers and acquisitions.
Our team are specialist recruiters for M&A CFOs, taking a tailored approach to recruitment. We’ll connect you with a CFO who fills your company’s skills gap and will hit the ground running. Start your search for an M&A CFO by contacting our team at recruitment@fdcapital.co.uk or 020 3287 9501.
What is a Merger and Acquisitions CFO?
An M&A CFO is a senior financial professional who specialises in overseeing mergers and acquisitions. They may be hired on a full-time basis and carry a full workload or be recruited on a part-time or interim basis to focus on a specific merger or acquisition.
They’ll play a leading role within the organisation with a unique position that allows them to act as a bridge between the company and stakeholders. Their financial skills enable them to identify opportunities and incorporate risk management into their strategy.
The role of a CFO in Merger and Acquisitions
A CFO will take centre stage during a merger or acquisition, overseeing almost every aspect of the deal and transition period. FD Capital is increasingly working with clients recruiting part-time and interim Merger and Acquisition CFOs specifically to oversee these arrangements. A company may also choose to recruit a CFO before exploring potential M&A possibilities.
There are several roles that a CFO plays during a merger or acquisition.
- Risk Management
One of the first questions a CFO will ask is whether a merger or acquisition is worth the risk. The current economic situation presents an opportunity for financially stable companies to capitalise on the loss of their competitors with a well-timed merger.
The CFO is one of the first people who will decide whether a potential acquisition is worth exploring. A CFO – as the company’s ‘Chief Future Officer’ – will determine how the move would align with the company’s long-term goals and whether the other organisation can be smoothly integrated into the company’s structure.
The CFO will also have to determine whether there’s a cultural fit between the two organisations that will deliver a good synergy post-acquisition. The stakeholders from both the CFO’s company and the target organisation will also need to be considered.
Risk management is the first task of any M&A CFO who will want to prevent their company from potentially wasting resources on exploring an ill-fitting acquisition.
- Establishing the Vetting Process
A CFO needs a specific skillset to be able to oversee a merger and acquisition, including establishing the necessary vetting process. The CFO will vet the other company as part of their risk management strategy, including determining the pricing expectation and the value the acquisition would add to their company.
The vetting process is only as resilient as the criteria that the CFO sets. These guidelines should identify positive and negative criteria to produce a full picture. Examining the target company’s hidden value, opportunities to boost profitability, and potential risk factors will allow a CFO to best decide whether a company is worth acquiring.
- Overseeing Transition Planning
A merger and acquisition CFO will look beyond the deal being made. After starting the acquisition, the CFO will move their attention to overseeing transition planning. They’ll want to implement due diligence and present a transition plan that the board can agree on. This proposed plan will be agreed upon before the acquisition is finalised.
Recruiting an M&A CFO will provide your company with a transition plan that includes forecasting, scenario planning, and a strategy for merging both financial processes. A transition plan is required for an M&A CFO to demonstrate the potential value of the merger or acquisition before starting negotiations.
- Closing the M&A Deal
The CFO is a lead mediator during the negotiation phase of a merger or acquisition. They want to get as much value from the transaction as possible, including finalising the deal on time.
It’s the CFO’s responsibility to prepare the relevant documentation for the transaction, including employee data, tax returns, and financial statements. They’ll play a vital role in supporting the CEO during their negotiations and engage with the leadership team of the other company throughout the process, including ensuring both sides stick to their due diligence schedule.
While a CFO will want to close the deal promptly, they’ll want to ensure both organisations are ready and that any risks are mitigated.
- Planning for Post-Acquisition
Mergers and acquisitions can fail to produce their expected ROI when there isn’t enough post-acquisition planning in place. The cultural differences between organisations can lead the problems
A CFO will want to mitigate these risks by aligning the company leadership with their post-acquisition plans and actively working on orienting the business cultures to produce synergy.
Recruiting an M&A CFO
Today’s CFOs come from diverse backgrounds beyond the traditional accountancy skill set as the role evolves into a more strategic and operational position. Operational business experience is ideal for CFOs who specialise in mergers and acquisitions, including those CFOs interested in stepping into the shoes of their CEO.
FD Capital connects highly-quality financial professionals with companies throughout the UK and beyond. Our talent pool includes specialist M&A CFOs available to work on a part-time, interim, and remote basis for added flexibility.
Start your journey to recruit a merger and acquisition CFO with FD Capital by contacting our team at recruitment@fdcapital.co.uk or 020 3287 9501.
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