Gary McGaghey Recap
According to Gary McGaghey many finance executives aspire to become the Chief Financial Officer at a private equity firm because they enjoy the chance to tackle longer-term growth plans and revive businesses. Private equity firms offer an opportunity to use the skills acquired in privately owned and publicly traded companies. While the challenge and risk are bigger, you may get more autonomy when it comes to decision-making, and there is a greater chance to influence future strategy.
However, you will need to be prepared for increased scrutiny from investors, expecting you to deliver targets quickly and effectively.
Gary McGaghey, Group Chief Financial Officer of Williams Lea Tag, explains why his experience working in both public and private equities has given him an advantage in helping other CFOs succeed in private equity. Gary McGaughey says that there are four key ways in which he helped his career to flourish.
- Know What You Want From Your Finance Team- Many CFOs feel like they have more than enough to deal with as it is. But, with so many people asking for your time, you’ll probably be swamped. So, ask yourself two questions before looking for someone else to take over finance duties. First, what exactly do I need from my finance team? Second, who does this job best? If you can answer yes to both, then bring them on board!
- The CFO needs to understand where and how they can benefit from low-cost technology, like cloud computing, to create value for the firm.
- Implement Best Practices- Private equity firms generally operate under the assumption that the best practices of a publicly-traded company apply. One of the key differences is that private equity firms invest in smaller ventures with fewer resources than public companies.
- The CFO’s job in a startup is to create operational efficiency. That doesn’t mean the CFO is responsible for leading efforts at transformation. Rather, it means creating operating efficiencies that help grow the business and reduce costs. See more information: https://www.f6s.com/gary-mcgaghey