Looking at the 6 types of CFOs and their roles can help you think about finding a leader who aligns with your business strategy.
“Although financial information is valuable, real insights into the business and its objectives are gained by establishing open lines of communication with stakeholders.”
Maurice Carr
Partner
Ireland
Private Company CFO: Building a Foundation with a Steady Hand
The private company CFO operates in a markedly different context from both public and PE-backed environments. Here, the focus centers on:
- Timely reporting
- Financial planning and analysis
- Process improvement
- Cash flow management
- Building strong relationships with stakeholders
The pace is steadier, and the priorities emphasize operational excellence over aggressive growth or public market dynamics.
Strategic planning in this context typically focuses on supporting organic growth initiatives rather than transformative deals or dramatic restructuring. These CFOs frequently report solely to the CEO, without the complex web of board members, PE partners, or public market stakeholders that characterize other environments.
Even so, Maurice Carr, a Boyden Partner, Ireland, says that a CFO in a private company needs the ability to build strong relationships with key stakeholders, including the owners. “This enables the CFO to better support the business and, where appropriate, to provide constructive challenge,” Carr says.
The primary external deadline may be reporting to banks if the company carries outstanding loans. Otherwise, the reporting calendar is internally driven and more flexible than in public or PE-backed settings.
Background and Career Path
The private company CFO typically comes from an accounting background, having risen through a controller role. This career progression makes sense given the emphasis on reliable financial reporting, process discipline, and operational finance.
These leaders understand the nuts and bolts of financial operations because they've managed them directly.
Key Success Factors
Success in this archetype requires reliability and consistency in financial operations. Stakeholders expect the finance function to run smoothly without drama or surprises. And, as Carr points out, a CFO needs the people skills to communicate well with these stakeholders.
“Although financial information is valuable,” Carr says, “real insights into the business and its objectives are gained by establishing open lines of communication with stakeholders.”
It's also important to establish strong ties with operational teams, because the CFO must understand how business decisions impact financial performance and vice versa.
The overarching orientation is toward sustainable growth and profitability rather than explosive expansion or dramatic transformation. These CFOs build enduring financial infrastructure that supports steady value creation over time.
