Over the last two decades, I’ve seen the cyclical nature of hiring trends – when permanent hiring slows, demand for high-quality interim CFOs usually surges. The signals that we are moving into a ‘year of the interim’ are already evident: economic uncertainty, prolonged executive search processes, and CFOs and other leaders being more reluctant to move. Private Equity (PE)-backed companies, in particular, can never afford stagnation, making 2025 a strong year for interim leaders as businesses seek fast access to experienced leaders who can deliver rapid impact.
The current market reality for acquiring value-creating finance leadership
- Economic uncertainty: With ongoing market volatility, many CFOs would rather stay put as opposed to taking the risks associated with a transition.
- Equity & Vesting Cycles: CFOs in PE-backed businesses often have a strong financial incentive to stay put until their equity vests or the business hits a liquidity event.
- Fewer ‘Step-Up’ Opportunities: Many high-calibre CFOs are in well-paid, high-impact roles, and are highly unlikely to move unless the new opportunity is significantly better.
- Hiring caution from PE Funds: Many investors and boards are more reluctant to make long-term CFO appointments in an unpredictable market.
The reluctance of permanent CFOs to move roles in the current economic climate puts significant pressure on both CEOs and PE funds. For CEOs, it means longer timelines to fill the role, and a heavier reliance on existing leadership. For PE funds, the risks are even more pronounced, with potential delays in strategic initiatives, value creation, and exit planning. Both parties must navigate these challenges carefully to avoid disruption and ensure they have the financial leadership in place to drive long-term success.
What are the risks of a prolonged CFO vacancy?
1.Financial risk and business impact
CEO’s View: A CFO vacancy disrupts cash flow management, reporting, forecasting, and risk mitigation, potentially stalling strategic decisions and creating inefficiencies.
PE Fund’s View: For PE-backed firms, delays in appointing a CFO can hinder performance improvements, impact growth targets, and affect exit planning, directly influencing returns and future fundraising.
2. Intensified competition for CFO Talent
CEO’s View: CFOs are increasingly reluctant to move, creating fierce competition for top candidates. This may extend search timelines and require higher compensation, adding pressure to the hiring process.
PE Fund’s View: The race to secure a high-impact CFO is critical for driving efficiencies and revenue growth. Delays can result in missed strategic opportunities, especially if an exit is approaching.
3. Disruptions to Strategic Initiatives
CEO’s View: Without a CFO, financial decision-making burdens the CEO, diverting focus from core growth initiatives.
PE Fund’s View: A missing CFO slows operational optimisation, requiring the fund to step in, which can divert resources from value-creation activities.
What are the top five demand drivers for interim CFOs?
- Creating impact at speed: Deployed in days, interims prevent leadership gaps during transitions or exits.
- Delivering specialist skills: Interims bring expertise in PE-backed transformations, cashflow optimisation, FP&A, and exit readiness.
- Lowering risk and creating stability: Interim leaders stabilise operations, reducing the risk of an unsuitable permanent hire.
- Navigating complexity: Objective leadership during M&As, turnarounds, or investor transitions builds confidence.
- Driving change: Interims challenge the status quo, driving change where needed, while ensuring business continuity while permanent hires are made.
What are the advantages of high quality interims?
- Rapid availability – Deployed within weeks.
- Proven track record – Experienced in value creation and PE-backed companies.
- Outcome-driven – Focused on delivering measurable results in a set timeframe.
Interim CFOs provide a quick, effective solution without long-term commitment, ensuring leadership impact and business continuity.
If your business is in transition and needs an interim leader we can help. Contact Paul Mendelssohn to explore top-tier interim CFOs who can drive impact from day one.
