Theresa A. Matacia, CFA, QRD®

Meme stocks are forcing companies to rethink investor relations. It's no longer just about the big players; retail investors & online communities are wielding real influence. CFOs need to adapt! Thanks for sharing, Secret CFO!

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💡Benchmarks in the investment industry serve as a standard for measuring the performance of securities, mutual funds, or investment managers. They provide a reference point for analyzing allocation, risk, and return of a portfolio, enabling investors to make informed decisions. Thanks Peter Walker for keeping us all informed!! Can’t wait for this!! Follow and get on the waitlist for this one! #benchmarks #fundraising #Capitalraise #founders #womenshealth #femhealth #medtech #wellness

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Paying rational prices in venture capital matters (now)! Here is a good explanation on why:

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What other questions do you have about private equity, interim CFOs, or executive search? Drop in the comments below or message me directly.

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Great article from Forbes about Fractional and Virtual CFOs (vCFO):   1. Assessing the Need for a Fractional or Virtual CFO: This involves evaluating financial performance, considering strategic scaling plans, assessing operational efficiency, and addressing compliance and risk management concerns. 2. Benefits of a Fractional CFO: These include cost-effectiveness, experienced advisory role, and flexible engagement options tailored to the business's current needs. 3. Finding the Right Fit: Tips are provided for selecting the best fractional CFO, including looking for industry experience, checking qualifications, and evaluating communication skills.   If you’re looking for a vCFO, let me know.   https://lnkd.in/g2dUaRHE

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I've been asked about a rapidly growing segment of the fractional CFO market - people or firms providing CFO Services, or a subset of what a full or part-time CFO would do. "Why would I want to work with one of those firms instead of with someone like you who is an experienced CFO?" It depends. If you are a small business and outsource your bookkeeping to a firm who can now provide you reports, dashboards, and high-level financial advice, it is well worth the extra expense. If you are a small business with just a bookkeeper and a CFO Services firm offers to import your Quickbooks data and create meaningful financial reports and meet with you on a regular basis to understand what they're telling you, that is also a good thing and most likely worth the expense. If you work with a CFO firm that has multiple clients the same type as your business, having them interpret your financials and KPIs is invaluable. If you've never used cash flow projections in your business, there's someone out there to do it for you. It doesn't always have to be someone with a CFO background. By contrast, if you are a large enough business to have an actually accounting staff with a controller, or have an ERP system, or have 7 figures of debt, or are rapidly growing, or have venture capital debt or outside investors, you probably need someone with a CFO background. Working on a fractional basis with someone experienced as a CFO is not always necessary. But it is important to match the person's skill set and background to each company's size and priorities. Any other thoughts on this?

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https://lnkd.in/e-Cc-PhA Just wrapped up a case study highlighting some successful value creation work for a vertical software company. After a funding event, it can be tough for management teams to align on which initiatives to tackle first. Here are a few tips from my experience: 📈 Prioritize Compounding Benefits Start with initiatives that enable or build capabilities. These early projects are not the most glamorous. The long term value is the momentum they create and tone they set. They pave the way for bigger wins down the line. 🚧 Address Bottlenecks We identified and fixed a major technical bottleneck in the sales funnel. This gave us an immediate boost to revenue and win rates. The less obvious win was a finding that our marketing efforts were more effective than we thought. Many opportunities fitting the ideal customer profiles were getting stuck at the bottleneck! ✴ Find the Triple Word Score Initiatives Focus on initiatives that add value across multiple valuation categories like revenue, margins, and multiple expansion. My favorites are those that improve operating leverage and scalable unit economics. Operating leverage improves as each dollar of increased revenue earns a little more Operating Margin (EBITDA) over time. In the case study, I renegotiated two of the largest variable cost supplier contracts, leading to immediate improvements in unit contribution margins and setting the stage for increasing margins as revenue grew. This is a valuable function of a durable business model. Most teams agree on what needs to be done, but not always on the order. Choose initiatives that start building a solid foundation for future investments or the Quick Wins with high impact. A few good articles that touch on the technical concepts.. Healthtech: Show Your Magic | Andreessen Horowitz  https://lnkd.in/eGkDnkiG The Gross Margin Problem - Bottom Up by David Sacks https://lnkd.in/e9J2Eqaa

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I had the opportunity to join FEI Silicon Valley's Strategic CFO podcast to discuss my journey as a startup CFO and share insights from years of navigating the fast-paced world of venture-backed companies. 🎧 Tune in to the full episode here: https://lnkd.in/gjGG_nVY For a quick summary of the episode, check out this article: https://lnkd.in/gHtTXBTD Grateful to Jan Robertson and FEISV.org for the opportunity. Would love to hear your thoughts! #startupCFO #venturebacked #financeleadership #strategicCFO #podcast

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After an M&A deal is inked, the future of employees at the targeted company is often called into question, including those in the C-suite. It's important for CFOs to ensure they have a road map for handing the company over to the buyer, Connor Augustyn, director of financial operations and PE at West Monroe said. "For CFOs on the sell side a lot of their job is making sure their back office functions are in order,” he told CFO Dive. “And you are wanting to showcase and highlight that you do have additional room and ability to scale.”  #mergersandacquisitions #cfoturnover #privatequity https://lnkd.in/eX-Pzw-a

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Fractional CFOs will continue to play a critical role in our economy. We utilize financial insights to identify the constraints in your business so you can focus on the highest value activity. This makes your business more efficient, and the economy as a whole. >80% of businessss fail due to cash flow issues. And it’s a significantly personal topic. 38% of divorcing couples cite financial problems as a reason for their divorce. My team at Capital Clarity CFO Services is geared up and ready to change lives! #FractionalCFO #VirtualCFO #Finances #Clarity #SmallBusiness #tcalive

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Perfect explanation of what a Fractional CFO does!

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Webinar: Juniper Square & PwC: A CFO's Guide to Modern Fund Management in 2024 Weds, June 12, 1 pm ET Register >> https://lnkd.in/e67VSk9Z

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What are the benefits of having a CFO??? As a CFO I’ve worn many hats to achieve company wide goals, short term and long term. Let’s discuss a a handful of major benefits of having a CFO whether you are a small, medium or large sized firm. 1. Better Financial Planning: With their expertise in finance, CFOS can help develop long-term financial goals and strategies that align with the overall business goals. 2. Improved Decision Making: A CFO provides management with valuable insights on how different decisions could impact the bottom line. This helps them make informed decisions that lead to better results. 3. Efficient Resource Management: A CFO ensures efficient allocation of resources by identifying areas where cost-cutting measures could be implemented without compromising productivity. 4. Compliance with Regulations: CFOS stay up-to-date on tax laws and regulations to ensure compliance while minimizing any legal risks for your business. 5. Increased Investor Confidence: Hiring a full-time CFO shows investors that you take finances seriously, which increases investor confidence in your company’s future potential. In summary, having a skilled and experienced CFO can provide numerous benefits to businesses from better planning to increased investor confidence- all helping drive success over time!

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Why PE-Backed CFOs Must Drive Team Alignment to Unlock Enterprise Value In the world of private equity-backed companies, every decision is scrutinized through a lens of value creation. The stakes are high, timelines are compressed, and the goal is clear: drive rapid growth and maximize enterprise value. For a CFO, financial strategy is only part of the equation; the true multiplier lies in aligning your team around a unified vision. Not too long ago, I was introduced to the EOS (Entrepreneurial Operating System) methodology. This system emphasizes accountability, data-driven decision-making, and streamlined operations. For this or any methodology to be truly effective, team alignment becomes the critical component to drive long-term value. Here’s why: 1. Focus on Key Priorities When every team member understands the mission and how their role ties into larger goals, distractions give way to strategic focus. With EOS, each team member owns key metrics linked to the company’s KPIs, ensuring that all efforts contribute to a growth-oriented culture and, ultimately, valuation. 2. Predictable Performance PE thrives on predictability, and EOS offers just that. Aligning teams with a structured system provides predictable results, reducing risk in projections and enabling strategic moves backed by data, not gut feel. 3. Accountability Drives Velocity Time is money, and cash is king! With a system focused on accountability, teams can move faster with clear ownership over tasks and a relentless focus on execution. Alignment reduces the need to constantly course-correct, freeing leadership to focus on high-level strategy. 4. Cultural Resilience Through Change In a high-stakes PE-backed environment, change is constant. Aligned teams adapt seamlessly, with EOS creating a shared language to handle shifts. From integrating new tech to pivoting to a new market, alignment helps teams thrive through change. 5. Enhanced Enterprise Value Ultimately, enterprise value is the bottom line. Alignment minimizes inefficiencies, maximizes productivity, and creates a cohesive organization that’s agile, resilient, and focused on value creation. For investors, alignment signals scalability and growth, making the company a more attractive target for acquisition or IPO. In the end, creating enterprise value as a PE-backed CFO isn’t just about hitting numbers; it’s about building a team invested in the mission. When everyone is aligned, the value created isn’t just financial; it’s cultural, strategic, and—most importantly—sustainable. PE-Backed CFOs: What systems have you used to successfully drive alignment and enterprise value in your portfolio firms? #Leadership #PrivateEquity #EnterpriseValue #EOS #TeamAlignment #CFO

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How did I go from being a banker to building a Fractional CFO firm? Michael King was generous enough to host me on The CFO Report, where I share my professional journey. We share an insightful discussion on the importance of identifying a niche and leveraging other experts through collaboration when providing CFO advisory services. Watch our discussion here: *Where did your career start?* #fractionalcfo #fp&a #debtadvisory

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The future of CFO leadership is changing fast. 📈 First, the role is becoming more strategic, requiring CFOs to be key decision-makers. Second, tech advancements mean CFOs must be tech-savvy to leverage data effectively. Finally, leading high-performing teams is crucial for success. Connect with me on LinkedIn for expert insights. #CFOLeadership #FinanceFuture #TechInFinance

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At Tanner LLC we work with a lot of technology companies and the subject software capitalization is always point of discussion. It is US GAAP, but we understand most investors just consider it a complication in the P&L and its hard to track and implement. The FASB board agreed this week to explore ways to simplify this GAAP, which would be welcomed. Below is a short summary of what they released. The Board decided to pursue targeted improvements to Subtopic 350-40, Intangibles—Goodwill and Other—Internal-Use Software. Specifically, the Board decided to: 1. Specify that the costs of software that has unresolved high-risk development issues would be accounted for as research and development (R&D) expenses in accordance with Subtopic 730-10, Research and Development—Overall 2. Clarify the starting capitalization threshold for nonlinear software development, including: a. Remove the requirement for an entity to evaluate the preliminary project stage and application development stage when determining the starting point for capitalization b. Require that an entity consider significant unresolved development uncertainties if it is unclear that it is probable that a project will be completed and the software will be used to perform the function intended. The Board decided not to further pursue a single model for recognition and measurement of software costs, which the Board had discussed previously, and decided not to make targeted improvements for recognition and measurement to Subtopic 985-20, Software—Costs of Software to Be Sold, Leased, or Marketed.

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It's on! Let's start the Silicon Valley Chapter of The CFO Leadership Council season out right with a social. Register here: https://lnkd.in/gKsFw8ag If you're not a member, reach out to me and I'll register you as my guest. hashtag #CFO #CFOKnow #CFOGrow #GrowWithUs #CFOLC #CFOLeader #CFO360 #SiliconValleyCFO #SiliconValleyFinance #GetToKnowEachOther

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Key Stat: In 2024, women represent 34% of Board Seats in the S&P500 up from 19% 10 years ago. Spencer Stuart released their 2024 Board Index Survey. Its a long document and really interesting so I would recomend checking it out if this type of stuff interests you. Some Key highlights: 1. More than 40% of all new Board Directors in the S&P500 were women in 2024 2. 35% of New Female Board Directors have Finance Experience. Outpacing other experience prior to joining boards. 3. Overall, Women represent 34% of Total Board Seats in the S&P500 up from just 19% 10 years ago, a 79% increase in 10 years. 4. Overall, 8.6% of S&P Companies have a women CEO up from 4.6% 10 years ago, though the majority of that growth came in the last 5 years. For me, it is quite interesting that Board Diversity statistics have out-paced C-Suite gender diversity in the last 10 years. . I think part of the reason behind this is that for Board appointments, there are many organizations that have pushed for more diversity in boards over the last 10 years -- everyone from the major iBanks (credit to Goldman for the first push), NASDAQ, the SEC, and others -- and I think generally it is more acceptable that those organization can push for these changes in Boards, but they can't enforce or regulate how companies hire their C-Suite (If I am wrong, please call me out in the comments!) The data shows an interesting trend in my opinion, that as outside organizations mandated more board diversity over the last 5-7 years, that this has also impacted the hiring and sourcing of key C-suite talent through board networks and talent assessments, which has in turn seemed to impact more C-Suite Diversity. In the last 5 years alone, Female CEOs in the S&P500 almost doubled. To be clear, this is an incredible small "N" amongst the very largest and most complex businesses in the world in the S&P 500. But, how do we apply it to our own organizations: what I would take away at the Organizational level, where each of us can have an impact, is that the type of programs that companies implement that support Diversity from the top (the "board" analogy) -- be it ERG groups, Leadership development and coaching, mentorship programs, Recruiting diverse C-Suite leaders, etc -- can and do have an impact. Just like Board Diversity is seems to be impacting C-suite Diversity. Also - for economics/statistical researchers - a really interesting study would be to see if you you can prove causal vs. just correlated relationship betwen these two factors with the more granular under data. I would be interested to see that. 🙂 Source: US Spencer Stuart Board Index 2024

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