Interim CFO & Accounting Services for Private Equity Investments
Fractional CFO Services Tailored to Lower Middle Market PE and Family Office Portfolios
Private equity and family office investments require unique financial management oversight and support. For nearly 15 years, our team of financial experts has created and refined the delivery of part-time CFO tools, processes, and services that drive enterprise values up and to the right.
More About Our
CFO AS A SERVICE
Developed over 13 years working with scores of lower middle market private equity backed portfolio companies, Acquisition Through Exit Services (ATES) is our bread and butter, end-to-end, no-surprises solution for cost effective, rigorous, timely financial processes and controls. ATES starts with due diligence and continues through the hold period, right through exit. Outliers will be involved to help improve and grow the portfolio company via:
- Building a cohesive team with company management, PE deal teams, and PE operating teams
- Assess and improve accounting staff
- Cleaning up and stabilizing accounting processes and strengthening internal controls
- Establishing an operating rhythm of regular operating reviews, forecasting processes, and corrective actions
- Developing and implementing an insightful & timely set of financial and non-financial metrics to drive decisions and action
- Provide compelling financial information and guidance for board level projects and operating result assessments
- Assist with add-on acquisitions and integrations
- Preparing for and assisting with exit
We can provide private equity experienced CFOs on an interim basis while the portfolio company seeks a full-time CFO or an incumbent CFO needs assistance. We tailor the services to fit the specific needs at the portfolio company as outlined by Company Management and the Private Equity Deal Team.
Ad hoc project work such as system implementations, special audit requirements, cash crunches, CFO candidate vetting, etc. can be of varying lengths and intensity, and often pop up on short notice. Outliers LLC can provide the resources needed to address these projects as they arise, using our private equity experienced CFO Partners.
Our experience building value across a variety of lower middle market portfolio companies has shown virtually all LMM portfolio companies require significant assistance with their accounting and control systems. Investing in LMM companies presents some unique challenges not encountered when investing in larger firms. Outliers LLC grew out of the recognition of these unique challenges and how they impact the timing and overall returns generated by LMM investments.
We live and breathe lower middle market PE and regularly share news, information and research of interest to our clients. Visit our blogs for the latest posts on the items we think you’ll find of interest.
WHAT’S AN OUTLIER?
Portfolio returns are often determined by high – or low – performing portfolio companies, otherwise known as outliers. We help deal teams identify and manage their outliers to help drive value ‘up, and to the right.’
Outliers also are highly experienced ‘plug and play’ financial experts who understand the unique requirements of working within the PE model. A seasoned fractional CFO (part-time CFO) can make the difference in creating deal value.
In other words, it takes an outlier to know one.
Referrals and references have always been our bread and butter.
When I first considered creating a fund to invest in lower middle market companies back in the early 2000’s, I recognized the need for greater financial control, reporting, and efficiency within the typical LMM portfolio company…. Read More
Thibaut is a designer, marketer, and distributor of high end wallpaper and was a corporate carve out from a much larger public company, acquired by the Riverside Company and management in 2006…. Read More
Hired in 2005, Dan was the first Group CFO for the Riverside Micro-Cap Fund (RMCF). Dan and his team did a great job in building out and continually improving the financial talent, processes…. Read More
GTI Diagnostics (now a part of Immucor Inc.) a transplant specialty diagnostics company was the for-profit arm of a large not-for-profit blood bank when acquired by the Riverside Company…. Read More
We grew Albireo Energy to a multi-location business of significant scale in little over three years, driven by seven acquisitions. Dan’s expertise and hard work with each acquisition from due diligence onward…. Read More
Dan is the exceptional CFO in that he spends the effort and time to understand all of the facets of a business decision, and does not retreat behind spreadsheets and financial barricades when faced…. Read More
We put our money where our mouths (and talents) are by investing in select client portfolio companies and private equity funds.
From the Blog
Occasional thoughts, news, research, and financial best practices as they relate to building value in lower middle market PE portfolios.
A recent survey of 100 PE firm partners and portfolio company CEOs conducted by a partnership of Vardis and AlixPartners revealed that CEO turnover occurs during the hold period in 73% of PE deals. Based on my 13 years of working with lower middle market (LMM) PE portfolio companies, I would say 73% figure is too conservative in the LMM.
A majority of the CEOs tasked with transforming PE portfolio companies into lucrative exits are instead being replaced within the first two years of the investment, thereby putting both the reality of those plans and their timetables in real jeopardy. Meaning that solving CEO turnover in PE companies is critical to industry success.
Ready to Build Value?
Whether you’re in pre-acquisition due diligence, working through the hold period, planning an exit, or considering an add-on or special project, we can help.