Advice for CEOs

CEO’s and Boards are usually inclined to think that changes in accounting rules are matters that only their CFO needs to worry about. Not true at all in the case of the new revenue recognition standards recently promulgated under the converged authority of the (U.S.) Financial Accounting Standards Board and the International Accounting Standards Board.

When middle market private equity (PE) firms acquire a controlling interest in a company, their agenda for the new portfolio company is typically aggressive.

Middle market private equity firms take different approaches to building financial management capability at their portfolio companies. After closing the deal for investment in a company, they often choose to keep the financial manager in place, whether he or she is titled CFO, controller or something else.