The Role of a Fractional CFO
Growing a business requires strategic sourcing and deployment of capital and effective balance-sheet and income-statement management. Stone Capital’s fractional CFO services are available for companies not yet ready to be marketed for sale. Typically, these companies have sub-optimal financial controls in place or other glaring issues that would prevent a successful exit.
Our highly-experienced fractional CFO offers client services that are customized to meet the company’s financial ability, and include a part-time basis, retainer, or a contract arrangement. By providing a flexible solution, our clients benefit from the experience and expertise of an executive-level CFO without the full-time and overhead expense burdens.
Overcoming Specific Challenges
Following Stone Capital’s proven exit-planning process, our fractional CFO is used when an organization has distinct and material financial challenges that cannot be cured by existing personnel. Because we operate in the lower and lower-middle markets, many of these organizations lack a full-time CFO. We step in and provide a solution to the immediate needs and create a plan that prevents financial complications from returning. Less frequently, a company has a full-time CFO, and our fractional CFO serves as an advisor to help mitigate problems discovered during the preliminary due diligence process.
Some of the specific challenges that Stone Capital’s fractional CFO helps companies overcome include:
Cash flow issues
Below-industry gross margins
Higher-than-industry expense ratios
Outgrown existing systems (e.g., updating to an ERP, for example)
Unlike a traditional CFO, our fractional CFO’s mission is specific: To remedy the company’s particular challenges that are preventing the business from a successful exit. If you would like to learn more about how a fractional CFO could help you achieve your exit planning goals, contact us today!