The responsibilities of the CFO continue to expand, especially within private equity-backed, middle-market companies. Once focused primarily on financial oversight, CFOs are now expected to lead strategy, embrace technology, and drive sustainable growth. As a result, the executive search process for financial leaders has changed. Here are three major trends shaping what firms look for in a modern CFO.
A Strong Focus on Value Creation
In today’s economic climate, many private equity firms are holding onto portfolio companies longer than they did in the past. With fewer exit opportunities available, there is more emphasis on creating long-term value through operational improvements rather than short-term financial engineering.
This has made value-focused CFOs highly desirable. Firms are looking for leaders who can improve performance by making the business more efficient, expanding into new markets, and supporting innovation. The goal is to grow revenue and profitability from within, not just through acquisitions or restructuring.
CFOs who can work across departments, manage change, and contribute to strategic decision-making are in high demand. Yet, these skill sets can be difficult to find, especially in companies that are already understaffed in critical roles. Executives with a background in strategy, operations, and business transformation stand out in the executive search process.
The Increasing Importance of Tech Leadership
Technology is playing a bigger role in finance, and CFOs are expected to help lead that transformation. This doesn’t mean they need to be IT experts, but they must understand the value of digital tools and can manage major system changes.
Firms are particularly interested in CFOs who have experience with:
- Leading or overseeing ERP implementations
- Managing the rollout of new reporting or analytics tools
- Supporting automation efforts to improve efficiency
- Working with cross-functional teams to adopt new technologies
- Aligning finance technology with overall business goals
In many cases, the most effective approach is to pair a tech-aware CFO with a strong in-house or outsourced technical team. That way, the CFO can focus on strategy and leadership while the experts handle the implementation. Still, having a clear track record of guiding tech upgrades and managing change across the organization gives CFO candidates a major advantage.
M&A Experience as a Competitive Edge
Mergers and acquisitions (M&A) remain central to the private equity model. Companies continue to rely on CFOs to manage key parts of the process, whether they are acquiring new businesses or preparing for a sale.
A CFO with strong M&A experience will typically:
- Identify and assess potential acquisition targets
- Manage the due diligence process
- Help structure deals for maximum value
- Oversee post-merger integration
- Work closely with investors and buyers throughout the transaction
While the CEO often leads external discussions, the CFO is deeply involved in the financial and operational details that drive a deal forward. Candidates who have worked on both the buy side and sell side of transactions bring an added level of credibility.
Searching for the Right Fit, Not a Perfect Candidate
Given the range of responsibilities expected from today’s CFO, some companies make the mistake of trying to find someone who can do it all. That approach rarely works. Instead, successful executive searches focus on matching the company’s top priorities with a CFO who brings the right strengths to the table.
For example, a CFO with strong strategic and M&A skills might need support from a CIO to lead a complex system overhaul. What matters is not whether the CFO checks every box, but whether they can build the right team and lead the company through its next phase of growth.
As the role continues to evolve, companies that take a focused, flexible approach to executive search are more likely to find the leadership they need.