The CFO You Need at Each Stage of the Private Equity Growth Curve

By Damian McCarthy, Founder – Boardroom Bench

If there’s one thing I’ve learned across my 35 years in finance and transformation, it’s that the CFO role isn’t static—especially in a private equity-backed business.

Businesses evolve quickly and whether you’re stabilising post-deal, scaling through acquisitions, or preparing for exit, the finance function needs to keep pace. In practice, that often means needing different types of CFOs at different stages. But that doesn’t always happen—and when it doesn’t, the impact can be immediate and painful.

When the CFO Hire Doesn’t Work Out

CFO hires are high-stakes decisions—and too often, they miss the mark:

• At least 40% of executive hires fail within 18 months, according to an internal study of 20,000 senior placements by Heidrick & Struggles.

• Harvard Business Review and McKinsey & Company site failure rates for new leaders of between 40–50%.

• A failed CFO hire can cost up to 2.5x their annual salary, not including the reputational damage or value erosion from delayed decision-making and misaligned strategy (Harvard Business Review, 2017).

In private equity backed businesses:

• 63% of portfolio companies that missed growth targets attributed the shortfall to a mismatch in executive capability for the stage of the business (Bain & Company, 2023).

• 75% of CFOs are replaced post-acquisition, often within the first 18 months, as complexity increases and readiness gaps are exposed (Ernst & Young / Barclay Stanton, via CFO.com, 2022).

These aren’t theoretical risks—they’re well-documented outcomes across industries. I’ve seen the consequences up close: from missed forecasts and lender unease to frustrated boards and distracted CEOs. In a compressed private equity timeline, the wrong CFO isn’t just a setback—it’s a threat to the entire investment thesis.

What I Learned at Graysonline

In one of my previous roles as Executive Director at GraysOnline, I helped grow the business from 50 staff to over 500, with turnover exceeding $500 million. Over an eight-year period, we rebuilt the finance function multiple times to keep up with the demands of rapid growth—new systems, acquisitions, international expansion etc. Eventually, a CFO with public company experience was hired to prepare the business for a successful part-sale.

After I left the business, I watched from a distance as Graysonline transitioned in and out of public company ownership and changed hands several times. With each chapter—whether marked by growth, consolidation, or restructuring—the business required different types of finance leadership. It’s a clear example of how the CFO role must evolve with the needs of a business.

That lived experience shaped the way I think about finance leadership and it’s the foundation for how we operate at Boardroom Bench.

Our Model: Built to Reduce CFO Hiring Risk

At Boardroom Bench, we’ve designed a model specifically to reduce the failure rate of senior finance hires—a risk that private equity sponsors can’t afford.

Unlike recruiters, we don’t just make introductions—we actively manage outcomes. Here’s how we do it:

• We operate as a firm, not a platform—personally managing a curated Bench of proven Interim finance executives.

• We match Interim CFOs to business needs and stage of growth, ensuring alignment with current priorities and trajectory.

• We onboard each executive, ensuring clear expectations, deliverables, and cultural fit from day one.

• We stay involved, with every assignment overseen by the founder or an experienced Chartered Accountant.

  
  

This approach ensures continuity, protects momentum, and dramatically reduces the risk of a misstep—especially when the last hire didn’t stick, or the next one is critical to value creation.

The CFO You Need at Each Stage

Private equity investments rarely follow a straight line—and neither can the finance function. As the business evolves, the finance team must adapt to support new priorities. Most successful investments progress through stages like these:

1. Post-Investment / Stabilisation (0–6 months)

• Focus: Cash control, investor reporting, governance uplift.

• 60%+ of private equity firms appoint interim CFOs at this stage (Deloitte CFO Insights, 2024).

2. Scaling / Bolt-On Integration

• Focus: Acquisition modelling, integration, budgeting, commercial alignment.

• Requires a CFO with transactional experience and operational depth.

3. Pre-Exit (18–36 months from planned sale)

• Focus: KPI polish, audit readiness, board and buyer confidence.

• Companies with strong CFO leadership at this stage are 1.9x more likely to exceed EBITDA targets (McKinsey & Company, 2023).

And Time Isn’t on Your Side

• Average private equity hold periods have shrunk from 5.6 years (2014) to 4.2 years (2023) (Preqin, 2024).

• There’s no time to wait for someone to “grow into” a senior finance role.

• You need the right capability at the right moment—with context, clarity, and experience.

If you're scaling a business, executing bolt-ons, or recovering from a bad hire—we’ve been there and we can help.

📩 Email: damian@boardroombench.com

 🌐 Visit: www.boardroombench.com

 📞 Phone: 0413 092 511