Interim Leadership for Manufacturing Company Amid Operational Strain

Service Area: Human Capital

Client Type: Private Equity Firm

Service Provider Type: Interim Leadership – COO

Industry: Manufacturing

The Need
Urgent Need for Interim COO To Stabilize Operations

A private equity firm needed an interim COO for its recently acquired manufacturing portfolio company in the Southwest U.S. The company faced significant operational strain due to leadership vacancies and increased demand, leading to production delays and growing backlogs.

The Challenge
Addressing Operational Overload, Leadership Gaps

The departure of the director of operations and other key personnel left the company struggling to keep up with production demands. The CEO was overwhelmed, handling tasks beyond his scope while also focusing on critical product development. The firm needed an interim leader to stabilize operations and alleviate the pressure on the existing team.

How BluWave Helped
Connecting with a Specialized Interim COO

BluWave connected the private equity firm within 24 hours with a shortlist of qualified interim COO candidates experienced in assembly, metal fabrication and electronics manufacturing. These candidates were capable of quickly integrating into the company, addressing operational inefficiencies, and supporting the team during the transition.

The Result
Stabilized Operations, Improved Efficiency

The interim COO selected from BluWave’s short list quickly identified key operational challenges and implemented solutions to reduce backlogs and improve productivity. This allowed the CEO to focus on product development while ensuring the company’s manufacturing operations remained on track.

You came out of the gate very strong with quickly identified qualified candidates. We would absolutely work together again on a future search

-Partner at PE Firm

Interim CEO Job Description: Skills, Services

Interim CEO services are highly coveted in transitionary economies, such as those experienced during the 2008 housing crisis, the COVID-19 recession and the 2023 bank failures. In times like these, successful CEOs with strong leadership skills, strategic thinking, and effective communication skills are essential to steer companies through challenging transitions.

What works for a chief executive officer under normal circumstances doesn’t cut it when times are especially tough. That’s why private equity firms, their portcos, and private and public companies often seek a interim CEO services to help them overcome challenging situations and not only survive but become even stronger than they went in. These professionals possess important skills such as adaptability, strategic direction, and interpersonal skills that enable them to assess crises and determine the right course of action quickly.

“Interim CEOs have had the ability and experience to quickly assess a crisis and determine a course of action quickly,” says Jake Adcock, BluWave’s Service Provider Coverage Manager. “They have been in several turnaround scenarios and understand the importance of speed and definitive action, while long-term CEOs have often grown up in a company and are less likely to assess and act as quickly.”

The Business Builders’ Network is full of individuals born and bred for this.

Interim CEO Definition

An interim CEO, also known as a temporary chief executive officer, is a highly experienced and skilled professional who temporarily assumes a leadership position, typically during times of crisis or transition within an organization. They are responsible for providing strategic guidance and making important decisions to help steer the company through a transition period or a turnaround situation. These leaders are brought in on an interim basis, typically with a well-defined interim CEO contract, to provide stability and make strategic decisions when needed. The interim CEO role also involves close collaboration with the executive team to ensure continuity and effective strategy execution.

READ MORE: Benefits of Hiring an Interim CHRO

“The role is to turn strategy into execution. I have a playbook I use because,” says Caleb Morrison, an experienced executive from our interim network. “It’s a structure and a governance process.”

Interim CEO Job Description

One of the primary skills required of an interim leader or acting CEO is change management. The role of an interim CEO requires someone who’s intelligent, experienced, a quick learner, a reader of people, and who’s prepared to turn around what might be a disastrous situation. Responsibilities include:

  • Provide senior-level guidance during unexpected vacancies
  • Drive significant change during disruptive circumstances
  • Manage corporate restructuring, crises and severe cost reductions
  • Implement transformation strategies and oversee digital transformation initiatives
  • Turn strategic plans into actionable execution
  • Lead the company through short window exits and performance drop-offs
  • Quickly assimilate information and make decisions from day one
  • Address profitability challenges and operational excellence
  • Ensure liquidity and manage financial distress

Interim CEO Skills

Nearly every chief executive officer must have some important skills as the leader of an entire organization. Temporary CEOs are no exception; they often need to bring unique services and talents to the table that a long-term leader may not have.

READ MORE: Why Hire an Interim CEO?

Understand Financial Distress

As Adcock mentioned, most CEOs are not used to dealing with disruptive circumstances.

When a company is in financial distress, it needs to change its business model. Michael Pooles*, an interim CEO from the BluWave-grade network, says many companies are not accustomed to doing that.

“They’re used to keeping the dial between nine and 11. But when times are disruptive, where companies come under stress, you need a different kind of leader. Most CEOs don’t have that skill set to drive significant change,” Pooles says. “That’s why you bring in an interim who does.”

Knowing how to deal with supply chain and other commercial-related problems is especially important for a temporary chief executive in challenging economies.

Quickly Assimilate Information

The sooner new leaders can grasp the data available to them, the more quickly they can affect change. Making decisions from day one is paramount in a role that typically lasts less than a year.

“Successful interim CEOs come in with a trust-but-verify mindset. An inquisitiveness,” Morrison says. “If you walk into a CEO chair, you’re not going to get a pass on a lack of knowledge.”

Act with Speed and Certainty

If a portfolio company recently broke covenants with a bank, or if a private- or publicly owned company is going through a crisis, it doesn’t have months or even weeks to “figure things out.”

They need someone with extensive experience who understands their industry, has a deep knowledge of how to confront the organization’s specific challenges, and needs to be able to address them quickly.

The company could have found a long-term replacement if time weren’t of the essence. The CEO role, however, cannot be left open for any significant amount of time. That’s why interim CEOs are expected to act fast and with an assuredness that inspires the rest of the team to follow their turnaround plan. An effective interim CEO ensures that when they leave the company, it’s already in a better state for the incoming permanent CEO.

CASE STUDY: On Short Notice, Interim CEO Turns Around Construction PortCo

Take Responsibility

If a portfolio company, private company, or public company needs an interim chief executive, it’s more often than not because things weren’t going well with the previous leader.

The last thing the organization needs is someone to come in, point fingers and make excuses.

An interim CEO should be mentally prepared to walk into a messy situation and do everything possible to clean it up. If things don’t work out at the end of the engagement, there’s only one person to blame.

“The buck stops with you,” Morrison says.

Evaluate Talent

“You need to be able to lead a varied group of people. Every situation you walk into, you don’t know what you’re getting into in terms of the talent,” Morrison says. “Being able to read people and understand what motivates them and change your approach accordingly is very important.”

What worked at one company, however, may not work at another. Interim leaders who take a cookie-cutter approach are unlikely to be successful.

CASE STUDY: Interim CEO for Manufacturing Company Seeking Permanent Replacement

“I don’t believe in a one size fits all,” he adds. “It’s very rare that every company is going to have the same culture.”

Interim CEOs must possess these abilities to lead a company through periods of uncertainty and provide the necessary stability. For more information, explore our CEO consulting and advisory services.

Problems Interim CEOs Solve

Within the context of these skills, an interim CEO might be asked to solve many specific problems.

Here are just a few of the more common issues we hear about when private equity firms and public and private companies contact us for a temporary executive leader:

Underperforming Business

PE firms want to accelerate their portco’s growth during their hold period. When things aren’t going as well as planned, they sometimes seek a change in leadership to turn things around.

An interim CEO can be the perfect solution to solve the more specific issues that follow.

Leaking Cash

“Leaking cash” means more money is going out than coming in. This could be due to lack of revenue from its products and services, and/or because too much is being spent on things like marketing, salaries and overhead.

At a high level, this can be resolved by reducing costs and increasing revenue. But it’s not as simple as it sounds.

That’s why an interim chief executive officer can be an invaluable resource in this situation.

Leaking Inventory

A leaky supply chain can also be a major downfall for a company. This can happen during packing, shipping as well as in-store handling, depending on the nature of the business.

An experienced temporary executive will know how to root out and address the cause of the shrinkage problem.

Margin Compression

“Margin compression is when input costs rise faster than the sale price of the product,” according to the University of Minnesota. “As a result, margins decline over time. Margin compression commonly occurs in most industries.”

This can happen due to increased competition or decreased demand – both of which drive down prices. It can also occur when the cost of parts and labor increases, thus lessening the organization’s margin on its product or service.

An interim CEO could address this in several ways, including reducing costs, increasing prices or improving operational efficiency.

Crisis or PR Disaster

These situations get a company in the news for all the wrong reasons: product recalls, employee misconduct, fraudulent or illegal activities, natural or environmental disasters and more.

The key is to restore trust and confidence in the company by communicating effectively with employees, customers, and the public. The right leader will also implement specific tactics to prevent similar disasters from reoccurring.


Finding interim executive talent who truly knows how to do the job well can be a time-consuming and expensive process.

When you tap into the invite-only, PE-grade network of exact-fit interim CEOs, you leave all the guesswork behind.

Adcock is in contact with the temporary chief executive officers we provide on a daily basis. That’s why we already know the leader you need before you even contact us.

READ MORE: Private-Equity Grade Interim CFOs

Set up a scoping call with our research and operations team and we’ll provide a short list of perfect-match candidates for you to interview in less than a single business day.

With BluWave’s network of interim CEOs, you gain access to professionals who combine continuous learning, strong leadership skills, and diverse team management to guide your organization through any transition. Explore our interim executive search services for more details on how we can assist your business.

*Privacy is important to us. While the source and company name have been changed, these are real quotations from a real service provider in the BluWave Business Builders’ Network.

Fractional CFO vs Interim CFO: Key Differences & When to Hire

A fractional CFO is an experienced chief financial officer who works part-time – typically a few hours to days per week – providing strategic finance leadership, cash-flow oversight, and investor-level reporting at a fraction of the cost of a full-time executive.


The fractional CFO has become an increasingly popular option for businesses seeking experienced financial leadership without the commitment of a full-time executive. But how does this role compare to an interim CFO, and which makes the most sense for your specific situation? This comprehensive guide breaks down everything you need to know about these flexible finance leadership options, their costs, benefits, and how to choose between them.

What Is a Fractional CFO?

A fractional CFO provides high-level financial oversight for businesses that might not be able to justify a full-time CFO.

“The biggest role of a fractional CFO is going to be a high-level overview. You just need that extra set of eyes,” BluWave Head of Finance Justin Scott says. “It’s more of a validation role.”

The “fractional” designation indicates that the person works a “fraction” of a typical full workweek. It’s not unusual for these professionals to serve multiple businesses simultaneously, often supporting three or more companies at once. Their part-time nature makes them particularly valuable for growing businesses that need financial expertise but aren’t ready for the expense of a full-time C-suite executive.

Core Responsibilities of a Fractional CFO

Fractional CFOs typically focus on strategic financial oversight rather than day-to-day accounting operations. Their primary responsibilities include:

  • Strategic financial planning – Creating financial roadmaps aligned with business goals
  • Cash-flow forecasting – Ensuring the business maintains adequate liquidity
  • Financial reporting oversight – Validating financial statements and ensuring accuracy
  • Funding assistance – Helping secure funding and establishing ongoing reporting processes with funding sources
  • C-suite advisory – Providing executive-level financial guidance to leadership
  • Financial modeling expertise – Building scenarios to inform business decisions

Unlike controllers who focus on accounting compliance and bookkeeping, fractional CFOs operate at a strategic level.

“The business is typically not going to be big enough to really justify a full-time CFO,” Scott explains. “But you do need somebody to validate the financial statements and make sure that your cash flow’s in line. Things that the controller or even a super-controller may miss.”

Engagement Models & Typical Pricing

Fractional CFO services typically follow one of two pricing models:

Fee StructureTypical Cost RangeBest For
Hourly Rate$200-$400 per hourProject-based work, variable needs
Monthly Retainer$5,000-$15,000 per monthOngoing strategic oversight, regular commitment

The wide range in pricing reflects differences in experience level, industry specialization, and scope of responsibilities. Manufacturing companies typically pay on the lower end of the spectrum, while specialized industries like healthcare and SaaS might command premium rates due to the sector-specific expertise required.

Most engagements begin with a more intensive “onboarding” phase lasting 1-3 months, followed by a steady-state period with fewer hours. A typical engagement timeline includes:

  1. Assessment phase (Weeks 1-4): Financial system review and initial recommendations
  2. Implementation phase (Months 2-3): Process improvements and system adjustments
  3. Maintenance phase (Month 4+): Ongoing oversight and strategic guidance
  4. Exit plan: Knowledge transfer to internal team or permanent CFO

Fractional CFO vs Interim CFO

Perhaps your business can’t justify a permanent CFO – or you’re going through a leadership transition or preparing for sale – but you still need the full-time commitment of a finance executive. An interim chief financial officer, then, may be the perfect solution to strike that balance.

While both roles provide flexible financial leadership, they serve different purposes and operate under different models. Understanding these distinctions is crucial for selecting the right option for your business needs.

Side-by-Side Comparison Table

FactorFractional CFOInterim CFO
Time CommitmentPart-time (5-40 hours/month)Full-time but temporary
DurationOngoing, often indefiniteFixed period (3-12 months typically)
Typical Cost$5K-$15K/month (part-time)$15K-$35K/month (full-time)
FocusStrategic oversight, specific projectsDay-to-day operations, transitions
Best ForGrowing businesses, cost-sensitiveTransitions, turnarounds, vacancies
Primary ValueExpertise at reduced costContinuity during transitions
Physical PresenceOften remote/virtualTypically on-site

“An interim CFO includes all the pros of a fractional CFO, but practically none of the cons,” notes BluWave’s documentation. The full-time nature of interim arrangements eliminates many of the drawbacks associated with part-time engagements.

When to Choose Each Option

Choose a Fractional CFO when:

  • Your business needs strategic financial guidance but can’t justify a full-time executive
  • You want to lower costs while maintaining high-level financial expertise
  • You need specialized expertise for specific financial projects or challenges
  • Your business is stable but requires ongoing strategic financial oversight

Choose an Interim CFO when:

  • You’re experiencing a sudden CFO vacancy and need immediate coverage
  • Your business is undergoing a major transition (acquisition, sale, restructuring)
  • You need full-time financial leadership during a turnaround situation
  • You’re in a transition period such as a merger, acquisition, or restructuring and need to stabilize financial operations while providing strategic direction
  • You want to “test drive” a potential full-time hire before making a permanent commitment

Many businesses ultimately find that their needs evolve over time.

“It’s a big step to go from a fractional CFO to a full-time role,” Scott says, “but the benefits are undeniable” for growing organizations that eventually require dedicated financial leadership.

Benefits & Drawbacks of Hiring a Fractional CFO

Before making a decision, it’s important to understand both the advantages and potential limitations of the fractional CFO model.

Pros

  • Cost-effectiveness – Access to executive-level expertise at a fraction of full-time compensation
  • Flexibility – Adjust hours and services based on changing business needs
  • Diverse experience – Fractional CFOs gain exposure to various businesses, making them “industry agnostic because they can step into a lot of environments,” according to Scott
  • Strategic focus – Concentration on high-impact financial activities rather than routine tasks
  • Objectivity – External perspective unbiased by internal politics or history
  • Specialized expertise – For specific tasks in advanced functionalities, a fractional CFO’s on-demand expertise can be invaluable, allowing targeted projects with costs limited to completion time

Cons

  • Limited availability – May not be able to respond immediately to urgent situations
  • Reduced integration – Less embedded in company culture and team dynamics
  • Potential commitment issues – Some finance experts would happily jump to a full-time position if the right opportunity arose. “That can almost be even bigger risk because a fractional CFO by nature already has less understanding of your business, and now they also have less commitment,” Scott explains
  • Learning curve – Takes time to understand business nuances and industry-specific factors
  • Multiple clients – Divided attention between your company and their other engagements

For many growing businesses, these trade-offs are well worth the significant cost savings compared to hiring a full-time CFO, which typically runs $200,000-$400,000 annually including benefits and equity compensation.

How to Hire a Fractional CFO

Hiring the right fractional CFO for your business requires careful consideration of qualifications, industry experience, and cultural fit. Here’s a systematic approach to the hiring process:

Evaluation Checklist

When interviewing potential fractional CFO candidates, evaluate them against these key criteria:

  • Professional qualifications – Look for CPA, MBA, or comparable credentials
  • Industry experience – Prior work in your specific sector or with similar business models
  • Company size relevance – Experience at businesses of similar scale matters. As Scott notes, “CFOs that come out of those portfolio companies or come up through the ranks have a very different mindset than one that comes up through the Fortune 500 world. It’s a little bit more of the rolling up the sleeves type thing.”
  • Technology proficiency – Familiarity with your financial systems and software
  • Communication style – Ability to translate complex financial concepts for non-financial executives
  • References – Speak with past clients about reliability and impact

Suggested interview questions include:

  1. What specific value have you added to businesses in our industry?
  2. How do you structure your engagements and communicate with leadership?
  3. What financial metrics do you consider most important for a business like ours?
  4. Describe a situation where you helped a company overcome a significant financial challenge.
  5. How do you measure the ROI of your services for clients?

Average Rates by Company Size

Fractional CFO rates vary significantly based on company size, complexity, and required hours:

Company SizeAnnual RevenueTypical Monthly CostHours per Month
Startup/Early Stage<$5M$3,000-$7,00010-20
Growth Stage$5M-$50M$5,000-$12,00015-30
Mid-Market$50M-$250M$10,000-$20,00020-40
Enterprise$250M+$15,000-$30,00025-50

When evaluating costs, consider measuring potential ROI through metrics such as:

  • Improvements in cash flow cycle
  • Cost reductions identified and implemented
  • Successful funding rounds facilitated
  • Margin improvements
  • Reduced audit and compliance costs

The best fractional CFO companies will provide candidates with experience in your specific situation. That means industry, company size, geography and more. BluWave’s network of professionals is pre-vetted with multiple references. That means before you contact us, we already have multiple candidates ready to meet you within 24 hours.

Whether you’re looking for help in major markets like Los Angeles, Boston, Denver, Austin, Philadelphia, Houston, or beyond, having access to a pre-vetted network can save significant time in your search process.

For businesses evaluating both fractional and interim options, consider reviewing our interim CFO hiring guide to understand the full spectrum of flexible finance leadership solutions.

Frequently Asked Questions

What does a fractional CFO do?
A fractional CFO provides part-time executive financial leadership – overseeing strategy, cash flow, and reporting without the cost of a full-time hire.
How much does a fractional CFO cost?
Rates range from $200–$400 per hour or $5k–$15k per month, depending on hours, industry, and project scope.
When should I hire an interim CFO instead?
Choose an interim CFO when you need full-time, on-site leadership for a transition, turnaround, or pre-sale period.
Is a fractional CFO the same as a virtual CFO?
Often yes – both terms refer to experienced CFOs engaged part-time or remotely, though ‘virtual’ implies entirely off-site work.
How quickly can BluWave match me with a fractional CFO?
BluWave can typically introduce short-listed fractional CFO candidates within one business day.

Whether you seek a fractional, interim or full-time CFO, the Business Builders’ Network is loaded with private equity-grade options for all company types and industries. The resources BluWave provides have been vetted by multiple PE firms before joining its invite-only network. When you’re ready to meet your next chief financial officer, our research and operations team will provide a short list of industry-specific candidates within a single business day.

For additional insights on cost structures and engagement models for interim financial executives, you might find this external resource on Interim vs. Fractional CFO fee structures helpful.

Looking for more specialized interim finance support? Learn about our interim CFO services and interim CFO consulting options to connect with the perfect match for your financial leadership needs.

How and Why to Hire an Interim CFO: Key Benefits

Identifying an interim chief financial officer can be tedious, if not expensive. Companies that don’t know what they’re looking for when they begin their search could spend large sums of money on headhunters and recruiting firms.

They can also lose valuable time interviewing unqualified candidates.

When hiring an interim CFO instead of a permanent replacement, key considerations include timeline, need-specific criteria and keeping an eye out for red flags.

As a trusted resource for hundreds of private equity firms and thousands of portfolio and independent companies, BluWave has exclusive insight into what makes a home-run selection vs. someone who will send you back to the drawing board.

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What is an Interim CFO?

An interim chief financial officer is a temporary, full-time executive a company hires when it’s without a full-time CFO. We’ll talk more later about the situations in which you would hire a temporary CFO.

To better “define interim CFO,” we asked BluWave’s Vice President of Finance and Accounting Justin Scott.

“I think the interim CFO role really depends because it’s really got to be scoped well going into it because you could have an interim for different reasons,” Scott says. “If you’re going to take the interim route, you want to make sure that you have an interim that has the specific skillset you need for the reason you need an interim.”

When it comes to interim management, finding the right interim CFO is important for your company’s financial operations to run smoothly during transition periods. Whether you’re a small business seeking immediate support or a growing company requiring specialized financial expertise, hiring an interim CFO while searching for a permanent candidate can provide many benefits.

“What we’ve heard is, you’re either finding a full-time person in less than 30 days in the first slate of candidates or it’s going to take five or six months,” BluWave managing director Houston Slatton says.

Identifying a candidate experienced with the right industry, company size and revenue models, for example, takes time.

CASE STUDY: Interim CFO Transforms a Physiatry Powerhouse in Flux, is Hired Full-Time

“You may get lucky, but you’re probably not going to. And so you need to plan to not have a full-time person in that seat for five or six months,” Slatton adds. “You don’t want a B-minus player because they’re going to be a key member of the executive team.”

There are several situations in which you might look for an interim CFO.

“You could have an interim CFO simply as a stopgap. You lost your prior CFO unplanned for whatever reason. And ‘I just I got to fill a role until I find my long-term solution,’ or I could have an interim CFO to prep for sale,” Scott says. “So it really depends on the scope of the interim CFO.”

Many businesses turn to interim CFO services and fractional CFO services to bring in experienced professionals on an interim basis. Here are some of the more common scenarios where interim CFOs are hired.

Trial Basis

One benefit of a short-term hire is that you can test them in the role before committing full-time. This makes it easier to transition a strong candidate to full-time if they are a good fit. It also means giving someone an opportunity without immediately making a larger investment.

“It is very easy to interview very well and then the person who shows up is not who you interviewed,” Scott says. “That’s very critical in the CFO role because if you get a bad CFO or somebody that can talk the lingo but not deliver the activity, you can get yourself in a lot of trouble real fast.”

Interim-to-full-time transitions often happen after a company has been recently acquired. What began as a one- or two-quarter stint can easily transition to a permanent role if the person has integrated well, especially with the CEO.

Stopgap

Sometimes, companies need more time before choosing a permanent CFO. But they don’t want to leave such a crucial role vacant for months, either.

This is another opportunity to bring in someone with interim experience to bridge the gap between the prior CFO and your long-term solution. Hiring a part-time CFO, virtual CFO, or even an outsourced CFO helps companies navigate complex financial challenges while waiting for a full-time CFO position to be filled.

“Given the importance of the CFO role, it’s really hard to be without one unless you have an amazing controller,” Slatton says.

Some people make a career out of temporary assignments, putting them top-of-mind for recruiters in these situations. One such person in our network talked to us about the benefits of an interim CFO.

“I think the primary purpose is to just stabilize everything,” says the executive, who spent eight years in PE before focusing on temporary assignments. “But then also learn the nature of the operations and the backbone of the company, and how it operates and if changes need to be made.”

CASE STUDY: Interim CFO: Complex Situation for Rapidly Growing Healthcare Services Business

At BluWave, we have seen that the end of the year is a popular time to hire an interim CFO.

Historically, about 60 percent of the interim CFO projects we have sourced were in Q3 and Q4.

“The last thing a CEO wants to do is be approaching an end-of-fiscal-year and not have somebody that’s going to drive their financial close right for the year,” Scott says. “That could be a really scary place to be, where earlier in the year you’ve got time to bounce back.”

Post-Acquisition Value Creation

Interim CFOs also focus on making a company as valuable as possible once it’s been acquired. This is especially important if someone in a lower-level position, such as a controller or an accountant, previously led finances.

“One purpose of an interim CFO is to just stabilize everything,” says Hunter Eagan*, an interim CFO from BluWave’s invite-only network. “But then also learn the nature of the operations and the backbone of the company, and how it operates and figure out whether it’s going to meet the demands of the new private equity owners, or if changes need to be made so that the company can produce the information that the private equity owners are going to want to see.”

Slatton says companies often use large amounts of debt to finance their purchases, opening the door to new accounting situations.

“Now they need somebody to handle all the bank reporting and covenant testing for the lenders and putting in real GAAP,” Slatton says. “As soon as they have a loan like that, they suddenly have to do all this financial reporting. That will be a new process and it hits quickly after they close on the business.”

In addition to what Slatton shares, other key value-creation tasks may include:

  • Developing strategic plans
  • Building up the finance team
  • Financial restructuring
  • Establishing KPIs
  • Performing audits
  • Forecasting
  • Cost management
  • Transaction processing
  • Closing the books
  • ERP implementations

Prep for Sale

A short-term finance executive can also be a great resource when a company is preparing to be sold. After holding a company for 3 to 5 years, PE firms typically look to sell it to a larger PE firm or public company.

Merger and acquisition experience is especially important in private equity; whether it be post-merger integration or prep for sale, M&A experience is key.

Here are some other ways interim CFOs can help companies prep for sale:

  • Performing legal and external reporting to regulators
  • Management reporting to internal stakeholders
  • Prepping the data room
  • Responding to diligence requests

What Types of Companies Do Interim CFOs Work In?

Any company that needs a temporary finance leader or financial expert at the C-suite level can use an interim CFO.

Private equity firms often want to find temporary finance leaders before, during or after the sale of a portfolio company.

But, private and public companies can also benefit from strong finance and accounting leadership.

At BluWave, this is one of our most in-demand roles year-round as companies seek to professionalize their finance function, ease a transition, recover from a crisis and more.

Interim Chief Financial Officer Recruitment Criteria

When evaluating CFO candidates, use the same measuring stick for each one. BluWave founder and CEO Sean Mooney, who has more than 20 years of PE experience, developed the PE-grade CFO scorecard for this purpose when looking for full-time CFOs.

Many of the same principles can be applied to the interim CFO executive search process. Having a baseline allows everyone involved to make more objective evaluations.

“Assign different parts of your scorecard to relevant key team members so you can systematically measure candidates against each of your criteria while getting a range of inputs from across your organization,” Mooney explains on the Karma School of Business podcast.

Companies often contact someone like BluWave for help when sourcing candidates or interim executives. We then present them with two or three candidates tailored to their needs. One of those candidates typically emerges as the leading choice, at which point they’ll continue interviewing with other executives and, when applicable, the PE firm.

While you can put whatever criteria you like on your scorecard, we have a few recommendations for the interim leader process.

READ MORE: Should I Hire an Interim CFO or a Fractional CFO?

Company Size

Experience at a larger company vs. a smaller one isn’t good or bad; it’s just different.

We often see, for example, executives who traditionally spend time at larger organizations struggle to move to smaller ones.

“CFOs that come out of those portfolio companies or come up through the ranks have a very different mindset than one that comes up through the Fortune 500 world,” Scott says. “It’s a little bit more of the rolling up the sleeves type thing, right? The PE-grade CFOs, that’s just expected because you have to be engaged in everything because instead of having 500 people on your finance and accounting team, you might only have two to five.”

CASE STUDY: Temporary Finance Leader for a Creative Digital Agency

Mooney recalls multiple past appointments that didn’t work out for that reason.

“I’ve had so many failures trying to bring in big-name large company CFOs who just couldn’t function at a lower-middle market size company,” he says. “It wasn’t that they weren’t great. It was that they just weren’t a good fit for a smaller-company environment.”

Relevant Industry Experience

This is an important factor for companies with unique or complex accounting needs or those within highly regulated industries.

A strong candidate should be able to articulate relevant industry experience in the interview process. Whether manufacturing, software, healthcare or another area, the interim CFO should be entering familiar territory from day one.

To evaluate this point, Scott says we ask candidates: “What did you do in that industry to make yourself stand out or to prove that you understand that industry and how it works?”

Capital Structures

Mooney says interactions with lenders and investors go more smoothly when someone has experience operating under similar capital structures.

“This is particularly true when we think about having done the balance sheet entering a public company operating environment,” he says.

CASE STUDY: Interim CFO Urgently Needed For Prep For Sale Process

Internal vs. External

While uncommon, there are times when the ideal interim CFO is already on your team.

“It’s going to be a more seamless transition with somebody that comes internally,” Slatton says. “If you have somebody really good that you like that’s internal, use them just because it’s going to be easier.”

More often, though, companies bring in someone new.

“Some of those higher-level kind of CFO skills, you’re not going to find on an internal team,” Slatton says. “Bringing in somebody from the outside allows you to have access to a broader set of skills and brings a fresh perspective.”

BluWave Interim Executive Practice Manager Ginessa Ross agrees, saying it can be easier for interim CFOs to put their emotions aside and get the job done.

“They can just pick out the issues and deal with it,” she says.

How Long is an Interim CFO Assignment

Interim CFO assignments, by nature, are temporary. Interim finance roles typically last around six months, though we have seen stints as short as three months and as long as a year or more. It all depends on the situation a particular business is facing.

“Oftentimes it’s until you find the permanent and that often takes three to six months,” Slatton says. “Recently, it’s been longer, just as it’s been harder to find talent across the board.”

As Slatton mentions, a full-time CFO is named at the end of the temporary CFO’s time. Oftentimes, there’s a transition process where the eventual full-time candidate works alongside the interim to ensure a smooth transition. In the same cases, the interim CFO is hired into the same position full-time.

Hire an Interim CFO Immediately

A well-vetted interim CFO search process typically takes up to 90 days from the initial call to their first day of work.

There are times, however, when you need a vacancy filled “yesterday.” At BluWave, we provide two or three best-fit candidates within a single business day. This can cut a process that normally takes months to a few days.

“Of the several hundred PE-grade CFOs in our network, we select the top two or three choices for a company, and once the negotiation is finalized, they can get to work very fast,” Scott says.

Every candidate in the BluWave network has been pre-vetted with multiple references. And before we recommend someone to a company, they are vetted again to provide the most up-to-date evaluation possible.

CASE STUDY: Interim CFO Crucially Needed for Portco Carveout

Two people discussing financial reports. There's a phone, a tablet and papers on the table. The papers and tablet show charts and data. One person is a man dressed in a suit. You only see the left hand of the other person. They're holding a pen. ot

Candidate Red Flags

As we already mentioned, many candidates can talk the talk but not walk the walk.

Here are some signals that will help you discount the duds from the outset.

Salary Disparity

If someone is accustomed to making significantly more money than you can pay, you might want to skip them. While they may claim to be interested, they could use the interim opportunity as a stepping stone to a higher-paying role, leaving you looking for another finance executive sooner than expected.

“In my experience, rarely will the candidate take a meaningful discount and not start looking for the best next role sooner than later,” Mooney says. “You don’t want to be a bridge to somewhere else.”

Geography

Another important consideration is location. Or, in some cases, relocation.

While the pandemic accustomed companies to remote workforces, there’s value in having your financial leader on-site, even for a few days a week.

In high-stress situations like turnarounds, restructurings or building a finance team from scratch, interim CFOs need to earn trust as fast as possible. This is difficult to achieve when working remotely.

“Time and time again, we’ve seen projects get down to the finish line, and at the end of the day, they say, ‘Well, I’m not really ready,’ or ‘We’re not going to move our family,’” Mooney added.

If you’re considering someone who’s out-of-market, confirm early on that they’re willing to work from your office for most of the assignment if this is important to you.

Short Stints

While less of a concern for temporary assignments, beware of candidates who routinely spent only a year or two in full-time roles.

The exception would be someone like our interim CFO veteran, who spent years in full-time roles before shifting exclusively to short-term stints. Candidates like him understand how to make the most of a three- to six-month opportunity.

“I think it’s very valuable to have someone who knows all the things that need to get done,” Eagan says. “Getting everything set up, and then making sure that the management team and the private equity owners have a good open line of communication, and aren’t afraid of one another. I think an interim CFO is in the perfect spot to facilitate that communication.”

Employment Gaps

Mooney says it’s normal for candidates to have “bumps in the road.” No one’s career is a downhill ride on the yellow-brick road. Hiccups should be the exception, though, and not the rule.

“Be aware of large gaps in employment. Look for track records of being recruited to bigger and better next roles versus leaving roles without a bird in hand,” he says.

If a candidate consistently leaves full-time jobs without having the next one lined up, dig deeper into why that is, or discount them altogether.

Pointing Fingers

Talk to each man and woman you interview about difficult times in their careers.

If they’re quick to pass the blame, you can expect them to act likewise once hired. You want someone who takes responsibility, not assigns it.

“Look for candidates to own the results and ultimately share what they did to take action and improve the situation,” Mooney says. “Be aware of candidates who repeatedly blame circumstance and fate.”

Questionable References

BluWave runs multiple reference calls before presenting a candidate to a potential client. Ross says this is a great way to weed out unqualified options.

“It’s a value prop that we have for our clients,” she says. “We always ask for references, and if they’re unwilling to send them, we take that as a red flag and we are unwilling to work with them from there.”

Passive Work Habits

If a candidate doesn’t have a history of getting involved in the day-to-day details, they’re probably not going to accomplish much in a three- to six-month assignment.

“People aren’t looking for an interim executive to come in and bark orders. Anybody can do that,” Scott says. “They’re looking for somebody to come in and really get engaged, understand what’s going on in the business, figure out what’s not working in the finance and accounting department and get that aligned with the business needs as quickly as possible. And you can’t do that sitting back.”

That’s why a candidate needs to express past accomplishments with details.

Bad Cultural Fit

“Every CFO that we’re going to present is qualified,” Slatton says. “It’s more about, can they fit well with the organization and are they going to partner well with the PE firm?”

Ross agrees, saying there are many qualified finance executives for hire. The more important question, though, is how well they can adapt to a new situation.

“If they can’t earn respect and get people on board with the company mission, they’re not going to be able to move the company in a positive direction,” she says. “You can be the most experienced executive in the world. But ultimately, if you butt heads with the person you’re supposed to be working with, it’s not going to work out.”

Lack of Experience

Ross, who onboards interim CFOs to the BluWave network, says lesser-known candidates can embellish their background to land a prized opportunity.

That’s why, she says, we ask probing questions before recommending them to clients: “Who have you worked with? When have you worked with them? And how have you worked with them? I think those are very important.”

When candidates see interim opportunities as a chance to build their skillset, it’s a recipe for disaster.

“An interim CFO job probably isn’t the way to learn new types of business models because interim CFOs need to jump in and know what they’re doing,” Slatton says. “Don’t try to think of an interim opportunity as a stretch opportunity.”


Selecting the right interim executive can be difficult, but with the right evaluation process and support, you’re more likely to hire the best person much faster.

Mooney recommended in CFO Magazine eight ways to optimize the process.

Creating an interim CFO scorecard can be a great way to kick off your search process, but don’t hesitate to contact us for help.

“Don’t overly weigh your assessment on any one criteria,” Mooney adds. “When using a structured scorecard-based approach that includes a comprehensive assessment of a candidate’s competencies, skills, values, intellect, personality and real-life case-study testing, I think you’re going to find that your success rates are going to go way up.”

*Privacy is important to us. While the source and company name have been changed, these are real quotations from a real service provider in the BluWave Business Builders’ Network.