The role of CFOs in buyouts

The Chief Financial Officer is a key player in any buyout management team. Private equity-owned businesses are often in constant flux: the aim is usually to transform the business through M&A, accelerated growth or restructuring. Some are highly leveraged. The most important focal point for CFOs is a future ‘exit event’, whether by a stock market flotation, or a sale to another company or private equity investor. CFOs are the day-to-day point of contact with the private equity owner and the banks that provided debt facilities for the buyout. Typically, they must focus simultaneously on value creation, EBITDA improvement, leverage, cash, M&A and investor relations as well as preparing the business for exit.