Balancing financial stability and strategic change: The rising demand for interim CFO's

Chief Financial Officers (CFOs) play a vital role in a company’s financial management and strategic direction. As the business environment becomes increasingly complex, the role of the CFO has evolved to include responsibilities such as risk management, regulatory compliance and commercial efficiencies. Interim CFOs are highly skilled professionals often brought in during periods of transition, during mergers and acquisitions (M&A) or financial restructuring.

In today's dynamic business environment, the interim CFO is an invaluable asset in providing stability, drive efficiency and lead through periods of change.

Increasing Demand for Interim CFOs

The demand for interim CFOs has seen a significant rise in recent years, attributable to several factors:

Talent Shortages

One of the primary reasons for the heightened demand is the widespread talent shortages. Companies are finding it ever more difficult to recruit and retain permanent CFOs, prompting them to turn to interim solutions. This is especially true in periods of limited economic growth, where the finance department often experiences high turnover rates. Since the start of the year, this trend has been particularly evident in the consumer and retail sectors.

The difficulties in permanent hiring are directing more companies towards interim placements. Many organisations prefer the flexibility and immediate availability that interim CFOs offer, allowing them to address urgent financial needs without a longer recruitment process.

Market Challenges

The challenging market conditions, including inflation, government changes, geopolitical tensions such as the conflict in Ukraine, and other economic uncertainties, have led businesses to seek interim CFOs. These professionals are adept at identifying and driving improvements, making them instrumental during times of financial strain.

Mergers and Acquisitions (M&A)

Interim CFOs are often brought in to manage potential sales or mergers of companies as their expertise in such activities is crucial as companies look to consolidate and expand. We predict the demand for interim CFOs with experience in M&A to grow as market confidence increases.

Client and candidate relationships

Effective resourcing and maintaining a robust talent pool of interim CFOs is crucial for quick and successful placements and we continue to build strong relationships with both clients and candidates. Regularly meeting and vetting potential candidates ensures a growing and ready pool of talent that can be deployed quickly when a vacancy arises. This proactive approach builds credibility and trust with clients, and allows us to respond swiftly, sometimes within as little as 48 hours. Repeat placements of candidates further strengthen these relationships, highlighting the importance of maintaining ongoing connections with top talent.

Looking ahead

The next six to 12 months are expected to see a continuation of the current trends, with a potential increase in private equity and M&A activity. As businesses adapt to the evolving economic landscape, the need for turnaround and consolidation finance positions is likely to rise. Companies will focus on controlling what they can and gaining market share, further driving the demand for interim CFOs to lead these efforts effectively.

Case studies

Below are two of our most recent interim CFO placements:

A Plc business required a strong interim CFO for a 12-month contract to navigate significant financial turnaround and transition. The candidate needed experience in retail and consumer sectors, various ownership models and the ability to take a company through major changes such as a private to public listing. The selected interim CFO has been instrumental in driving the transformation journey, handling board relations and delivering impactful results.

A restaurant brand sought an interim CFO with extensive finance, supply chain and legal, with a global remit across the company’s equity business and international franchise. We placed a candidate which exceeded the client’s requirements of both private equity and refinancing experience, essential for leading a high headcount business to deliver transformational results.