Does Your SME Need a Finance Director for Your Exit Strategy or Further Investment?

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There comes a time in every business’s lifecycle when future plans need to be put in place. 

Your organisation’s plan will be different; some will want to expand, while others might think about selling the business. 

As a financial recruiter, I have helped countless business’s during this critical stage in their growth plans. Deciding to take your company to the next level with the help of a dedicated Finance Director can be one of the most pivotal moments in a business’s history. 

Today, we look at the critical things to consider when you appoint an F.D. or a senior finance professional in your organisation. 


1. What Key Functions Can a Finance Director Provide? 

Until a certain point, your business’s finance function will be taken care of by either an external accountant, an internal management accountant or a finance manager. It may even be the M.D. or business owner who undertakes this function – not an ideal scenario. Around the £5 million turnover mark, it’s time to start thinking about creating a Finance Director position.  

Some business owners think they are operating cost-effectively by holding out on employing a Finance Director when, in reality, they are misusing resources that could be better spent elsewhere. 

The finance director’s position will vary depending on your business’s size and complexity; essentially, they should ensure all company finances are being spent effectively. 

The more your company grows, the more critical it becomes to have a strategy for your finances, not just retroactively looking at spending, but to plan for the future, too.  

Let’s look at how appointing a Finance Director can help SME’s at different stages of their growth. 


2. Do You Plan to Expand? 

Your plan to expand is one of the main reasons to consider appointing a Finance Director. Modern F.D. roles are incredibly versatile and are more about strategy than accounting. 

When businesses want to grow, they will need an F.D. on the board to secure investment from private investors.  

And many businesses are now in this position to implement their growth plans as the market stabilises post-pandemic. Refinancing, private investment, buy and build strategies – companies planning any of these now will require a highly skilled Finance Director in place. 

Private equity firms are enjoying significant growth right now – U.K. PE for buy and build transactions rose by 35 per cent in 2020, according to research by finance advisory firm Rickitt Mitchell. 

Smaller SME’s who may not have considered pushing for their next level of growth are now reconsidering these opportunities as the Covid-19 bounce back gets fully underway. 

M.D.s and CEOs have this unspecified period to take advantage of this buoyancy in the market, and for this reason, skilled F.D.s are in greater demand than ever. 

There also comes a time when an SME must get its exit strategy together, either for the business owner to step back and hand it over to the next generation of management or sell the business entirely. Both scenarios also require the expertise of a highly skilled F.D. 


3. Thinking About Your Exit Strategy? 

A fruitful exit strategy can often be a sign of business success.  

Are you planning your exit strategy? Many business owners find this difficult to pin down – knowing when is the ‘right time to either step back or sell the business. Only an experienced F.D. will be able to help you make such a critical decision.  

You might be considering a merger, acquisition or even liquidation – depending on the business’s finances. In all of these scenarios, an expert understanding of your financial forecast is a must. 

It can seem counterintuitive to employ a Finance Director at such a stage, especially if you are planning an exit strategy sooner rather than later. The assistance of an expert will always help you make a truly informed decision.  


4. How to Find the ‘Right’ Finance Director? 

Creating a Finance Director role in your company for the first time is a significant change, and you need to be sure that your new F.D. implicitly understands your needs and the needs of your business. 

If your SME is hiring an F.D. for the first time, we can help. Since the rise in investment, mergers and buy and build since the pandemic, we have been assisting companies in finding the finance professionals they need to take their business plan to the next level.  

If you would like a conversation about what you need from the next stage of your businesses financial future and how we can help you find the individual or team you need to help you achieve it, get in contact with me today on 01282 930930 or click here. 





About Rebus Financial Recruitment   

Rebus Financial Recruitment provides a specialist and focused recruitment service to its customers, which historically range from a wide variety of organisations, including SME’s to large PLCs.   

We strive to offer both the client and candidate a seamless recruitment experience. Using our expertise, we get to the heart of employer and employee needs, and, in doing so, we match the two perfectly. To find out more, get in contact with one of our team today, or you can call us on 01282 930930. 

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