Become more informed in minutes....

CFO Brew continues its series examining the effect that private equity is having on accounting firms. Sabrina Howell, a professor of finance at NYU’s Stern School of Business is quoted as saying that “Private equity is often well-positioned to create value in industries that are facing change and distress, because they can respond with applying technology and new management practices quickly, and potentially be more nimble than the previous owners.” It is also noted that accounting firms are using capital from private equity to address the talent shortage in the sector. Jey Purushotham, practice group leader for risk and compliance at professional services software firm Intapp, said firms are offering “better compensation packages” and spending on “technology to make a lot of that grunt work go away" to attract younger workers.

 

CFO Brew

Smart strategies to boost your firm’s savings

Tired of seeing expenses chip away at your profits? Discover actionable steps accountants can take to reduce costs without sacrificing efficiency. From optimizing software usage to automating tedious tasks, our guide has you covered. Start streamlining your processes and keep more in your pocket.

Read the Guide Now

 

A round-up of the Top 100 Most Influential People in Accounting "identifies the thought leaders, change-makers, regulators and other leaders who are shaping the profession, and the issues that they face as they chart the future of accounting" according to Accounting Today. The report can be accessed here.

 

Accounting Today

CFO Brew reports on how CFOs may be focusing on the wrong performance metrics, quoting John Hagel, founder of consulting firm Beyond Our Edge and a former partner at Deloitte, as saying that return on assets (ROA), instead of return on equity (ROE), is “the most fundamental measure of corporate performance.” He commented: “If you want a good indicator of mounting performance pressure, that’s a pretty good indicator, not only of the pressure but our increasing inability to respond to it.”

 

CFO Brew

The average tenure for CFOs is steadily falling amid a boom in deals and public offerings. Madhu Namburi, head of technology investment banking at JPMorgan is quoted in Fortune as saying “IPO market and M&A, we are very bullish for 2025; we think it does come back,” citing investor demand. Russell Reynolds Associates (RRA) has suggested that the high turnover in the tech sector is partly the result of increased retirement rates, as well as high CEO turnover and lower market performances since 2022, and states that many firms are now pending time considering how to fill the CFO position. The article notes that the average tenure of an outgoing CFO has reached a five-year low of 5.6 years.

 

Fortune

Juliette Han, CFO and COO at biotech firm Cambrian Bio, claims that how we define the personality characteristics of a great coworker is too linear, and suggests a new approach. She described an assessment of personas in the form of a traditional Thanksgiving dish, with Turkey the centerpiece of an organization or project and Stuffing the connector. Other ingredients correspond to different office personalities. 

 

Fortune