Many sponsors are using interim CFOs between deal close and full professionalization to stabilize finances and accelerate value creation.
In today’s middle market private equity environment, speed matters. Funds are buying companies with thinner finance teams, shorter diligence windows, and greater demands for real time reporting.
As a result, many sponsors are turning to interim CFOs as a strategic bridge —between deal close and full professionalization — to stabilize finances and accelerate value creation.
At CLA, we’re seeing this more than ever across our PE relationships. Whether the acquisition is a founder-led business, a carve out, or a first time institutional investment, the interim CFO model solves a widening gap between where the finance function is and where sponsors need it to be within the first 100 days.
Below are the drivers behind this trend, and why more PE firms view interim CFOs not as a stopgap but as a competitive advantage.
The first 100 days require more sophistication than most companies have on day one
Most newly acquired businesses — even strong ones — aren’t ready for sponsor-level reporting on day one. Common gaps include:
- Limited or manual month-end close processes
- Unreliable cash reporting
- Lack of KPIs tied to value-creation plans
- Underdeveloped budgeting and forecasting capabilities
- No experience with board-level reporting cadence
An interim CFO can immediately stabilize these areas, implement needed controls, and translate sponsor expectations into operational reality.
Why this matters for PE: It reduces execution risk during the most critical period of the investment lifecycle.
Recruiting a permanent CFO takes time — and getting it wrong is costly
The average search for a permanent PE-ready CFO ranges from 90 to 180 days, longer for niche industries or rural markets. And hiring the wrong CFO can stall value creation for a year or more.
Interim CFOs offer:
- Instant credibility with lenders, auditors, and the board
- Leadership continuity while the long-term search plays out
- Objective assessment of what capabilities the permanent CFO should have
Many PE firms tell us they rely on interim leaders explicitly to define the job requirements more accurately before launching a full search.
Interim CFOs accelerate the shift from accounting to finance
Founder-led and lower-middle-market companies often have accounting departments, not finance organizations. Interim CFOs help transition the business to a more modern model by:
- Moving from cash-basis to accrual-basis reporting
- Establishing reliable 13-week cashflow systems
- Integrating KPIs into operations
- Implementing budgeting, forecasting, and scenario planning
- Standing up a data infrastructure that supports rapid decision-making
This shift is essential for sponsors who need visibility, not just historical bookkeeping.
Interims CFOs can help de-risk the audit, QofE, and board-reporting cycles
Portfolio companies often experience their first-ever audit, lender reporting cycle, or quality of earnings review after a transaction. Interim CFOs help these processes be:
- Efficient
- Well documented
- Aligned with sponsor requirements
They act as the bridge between auditors, bankers, and the finance team, reducing surprises and accelerating the path to clean financials.
Interim CFOs are increasingly specialists in “first institutional capital” transitions
Sponsors are leaning on interim CFOs who specialize in:
- Carve-outs from larger corporate parents
- Founder-led businesses with no prior institutional investors
- Businesses upgrading systems from QuickBooks to NetSuite or Sage Intacct
- Integrations following bolt on acquisitions
These specialists don’t just manage finance — they manage transformation.
Interim CFOs leave behind a scalable finance function
The best interim CFOs build a foundation lasting well beyond their engagement:
- Documented processes
- A redesigned monthly close
- Clear dashboards and KPIs
- A finance team with clearly defined roles
- Board materials that become standard going forward
- A repeatable reporting rhythm
By the time the permanent CFO starts, they inherit a stable, modern, and trusted finance function.
How CLA can help PE with interim CFOs
As the mid market becomes more competitive, PE firms can’t afford a six month lag in reporting quality, controls, or forecasting accuracy. At CLA, we have consulting CFOs able to work with PE and immediately help with value creation and risk reduction. They help sponsors:
- Move fast
- Professionalize quickly
- Build credibility with stakeholders
- Reduce execution risk
- Set up the permanent CFO for success
For many funds, the interim CFO has become as essential as the first 100-day plan itself.