An Inside Look at CFO Services for Private Equity-Owned Companies

October 20, 2021

If you’re a Denver-based company that has grown to a point where you’re considering accepting funding from a private equity or venture capital firm—or you’ve already received that funding—listen up. Changes in how you report your business from the financial side of the house loom large.

Most private equity firms investing in companies seek a list of reporting and other requirements. This might be entirely new to your business—things like quarterly reporting, board reports, shareholder’s reports, detailed financial information for various business cycles, and much more.

Perhaps you have someone at the helm of your accounting and finance function and perhaps that person even holds the title of CFO. This person will now be charged with partnering with the private equity firm—and this might be totally new to them. They’ll be expected to shift their role from managing and overseeing the day-to-day operations of the financial house to meeting bottom-line expectations and providing metrics.

Is your CFO equipped to fulfill this role?

There’s no doubt that the person you currently have in charge of accounting and finance knows your company better than any private equity firm could. This is invaluable. However, they might not have the background or experience to provide the type of financial reporting and governance documentation expected of your company’s new owners.

Most private equity firms are registered with the Securities and Exchange Commission, so documentation of company valuation and consistency in reporting are critical. This requires a high level of understanding of how transactions work and how they are valued. You might also be asked to upgrade your reporting or ERP systems, which requires experience with this type of implementation. And here’s the reality: not all CFOs have this type of experience or skill set.

Enter interim CFO services from TGRP Solutions

TGRP Solutions offers CFO services to companies that are or will be indebted to or owned by private equity groups or venture capital firms. We augment your existing CFO and support staff by filling the gaps where they are less skilled, while still taking advantage of their unsurpassed, unmatched knowledge base.

Our skilled consultants have worked as CFOs themselves, in both privately held and publicly traded companies. Many have worked with private equity firms in previous roles and are familiar with their approach and expectations. Whether you need a fractional (part time or interim) CFO for 15 hours a week or a full-time CFO for an interim period (during the integration phase, for example), we can help.

What TGRP Solutions’ interim CFOs can do for you

Here is a list of the kinds of services our fractional and interim CFOs can provide to your company:

  • Accounting support, including advising on technical accounting policies, developing external financial reporting requirements, identifying risk areas and developing procedures to reduce that risk, improving the monthly financial close and financial reporting process, etc.
  • Financial planning and analysis support, including developing financial models, budgets and forecasts that adhere to private equity requirements, developing reporting that shares key performance indicators requested by the private equity firm, and guiding short- and long-term strategic planning.
  • Optimization of processes to drive value for investors and other stakeholders.
  • Optimization of technology to unite disparate systems (and drive efficiency) and ensure the financial reporting is accurate and timely, allowing investors to gain insights about the company on a regular basis.
  • Integration after private equity investment of accounting, IT, HR, and other processes and reporting for key metrics, including amplified cash reporting and levered and un-levered free cash flow.

We know Denver, and we know private equity

TGRP Solutions has worked in the Denver market for many years, providing both consulting (including interim CFOs) and full-time placement solutions to many companies in many industries. We also understand the unique needs of private equity-owned companies going through integration, and we have staffed our consulting team with professionals who have the right kind of experience. Your goal is to ensure this is a successful investment, after all. You need the right team in place to make sure you can fulfill any goals set by your investors and continue to help your business achieve success.

Contact us to learn more about our interim CFO services for private equity-owned companies.

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