Gary McGaghey Shares Some Strategies to Help CFOs Thrive in the Private Equity Space

June 29, 2022 0 Comments

Working as a CFO in the private equity space can be challenging. Many CEOs start to feel like their job consists of ensuring that their company’s cash flows are as smooth as possible. Once they inherit an, um, ‘unfortunate’ investment in a company or industry, they often spend the rest of their days working with other private equity executives to ensure it runs smoothly. It doesn’t leave them high and dry. Meanwhile, other execs wonder what happened to the mind-blowing deals they used to dole out money. The truth is that the private equity world isn’t all about chicken scratches and oil & gas playbooks. It has its fair share of curveballs thrown its way.

  1. Get to Grips with Complex Cash Flow Requirements

Gary McGaghey, CFO at Williams Lea Tag, has had the unique opportunity of working with private equity executives in three different industries. He has had to deal with cash flow requirements ranging from a few million dollars to hundreds of millions. The common theme among these industries is that they are highly capital-intensive. This means that they require a lot of money to keep going and growing. Private equity firms have to make sure that this money is being invested wisely and efficiently so it can be used as effectively as possible.

Read on to find out more about Gary McGaghey and his work at https://www.crunchbase.com/person/gary-mcgaghey

  1. Build a Reliable Fact Base

Gary McGaghey says it’s not enough to have a reliable fact base. The CFO has to be able to read the tea leaves, so to speak, and see whether or not a company or industry is likely to continue growing. One of the best ways for private equity firms to do this is through third-party reports and analytics. Many private equity firms will use their own internal data and data from outside sources like Bloomberg, but McGaghey recommends using external data.