Many chief financial officers (CFOs) are under pressure to steer their companies’ financial strategies, make investment decisions based on cash and liquidity risks, and establish and maintain consistent risk management practices.

The media is using social media to highlight struggling areas of the economy. This is taking place at a time when many businesses are struggling due to competition and possibly poor financial management.

As we’ve seen with Tesco, Patisserie Valerie, Enron, and Carillion, flaws in both successful and failing businesses can be exposed on social media. The following are the weaknesses of these businesses as revealed by social media:

This is why the CFO must carefully examine each new business venture. The chief financial officer must be well-versed in their field and have extensive experience. When should it be used? Particularly if they are transitioning from PLC to PE.

Gary McGaghey, CFO of a group and a division, outlines six paths to becoming a CFO. Planned actions consider how a company hires a CFO, the transition from one industry to another, skill sets, and years of experience. Changes in the market are factored into these plans. More details are available on Gary McGaghey’s Facebook

Hiring from outside for Starters is more Common than Promoting from Within

A company’s executive team is more likely to hire a new CFO from outside the company rather than promote someone from within. According to Gary McGaghey, when a company employs from outside, they can find someone with new ideas and skills.

CFOs in private equity are frequently second in command at more giant corporations.

Over 85% of the 1,000 CFOs in the report’s sample were hired from outside the company. Seventy-five percent of CFOs were employed by publicly traded companies.

Use Private Equity for Early-stage Management

The transition from a limited company to a private equity firm is unsettling for many chief financial officers. According to Gary McGaghey, private equity firms can become private limited companies.

His decision to leave Nelson & Co Ltd. and join Williams Lea Tag caused the shift.