When a commercial catering equipment services company had completed an MBO from a plc, they quickly found that they lacked the financial and commercial expertise required in order to help with the planned business growth. A very good finance team was in place, but the high level requirements could not be met with the current structure.
By providing a part-time Finance Director to work one/two days a week, this enabled the Directors to concentrate on running the business and allow all financial and commercial matters to be dealt with by the part time FD. The FD took a small equity stake to ensure the management team were harmonised as one, and were totally focused on growing the business.
This allowed the business to enjoy rapid growth over the next 12 months following the appointment, which ultimately resulted in the sale of the business to a plc thus providing an excellent return for Shareholders in a very short time.
By bringing in expertise by way of a part-time FD, this allowed the Directors to focus on the operational side of the business, and when the sale process commenced it meant they were not totally distracted from the running of the business that often happens when going through a sale process, as the part-time FD handled all matters relating to the sale.
A part-time FD can bring real value to a business that cannot afford, or does not require a full time FD.