When And Why Should You Hire a CFO in the UAE? What to Look For?

You might be wondering whether your company needs a Chief Financial Officer in the immediate future or could you prolong the hiring decision for a few years. Find out the right insights into when to hire a CFO and how to go about the searching and hiring process. Conducting CFO searches, finding the right professional for your company, and persuading the professional to work with your company are different challenges. Get the best help by working with CFO headhunters. Well, this article will discuss everything you need to know about when and why you need a CFO and how an executive search firm can assist with the different recruitment stages and processes.

A chief financial officer, commonly known as CFO, is the senior executive in charge of managing all the financial actions of a business.

The CFO provides leadership to the accounting team, offers strategic recommendations to the company’s executive bench, manages the financial processes like budgeting, and advises on long-term financial planning.

With the increasing compliance requirements in the UAE on different fronts – trade, commerce, Islamic finance and banking, international financial transactions, etc.,- the need to hire an industry expert who can guide you through all risky or capital-intensive business decisions becomes a necessity.

But not all companies need a CFO. Find out if your company needs to quickly hire a CFO or not.

When and Why to Hire CFO For Your Start-up in the UAE

1. When Your Business Plans Project About $50 Million or More in Annual Revenues

If the annual revenue for your company exceeds $50 million, then a CFO is required to assist you with tracking cash flow, setting revenue management goals, and so much more. In addition, the officer is responsible for reporting and presenting accurate financial information to the company leaders.

2. When You Plan Capital-Intensive Business Expansion Plans That Involve Many Millions in Investment

A CFO is a must when you plan for business expansion that requires large amounts of investment. It is the CFO who will strategize and forecast using the available internal and external finance to fund the capital-intensive expansion.

Moreover, he will also advise on the volume of production to provide an adequate return on investment.

The high operating leverage makes capital-intensive industries vulnerable to environmental and market changes, which have to be monitored and reported. Accordingly, the CFO will advise on appropriate measures required to offset the changes. In other words, it is the CFO who can offer strategic leadership, cost and productivity management across the company, and capital allocation.

3. When You Plan Mergers and Acquisitions Involving over $40 Million in Costs

Even though the CEO is at the forefront of the company’s operations, the CFO is equally responsible for driving a deal being the company’s financial head. The CFO is required to legalize the probability thesis of the agreement and help assess the risks.

In order for merging to be a success, the CEO has to rely on the CFO’s executive direction in the dealmaking process. When buying a company, the CFO prepares reports on earning, liability, and risk impact of the company that is acquired.

4. When You Are Planning a Business Diversification That Involves Huge Financial Risk Management Activities

If you have plans for your company to enter new markets and offer products and services that are diverse from the existing ones, you will require the assistance of a CFO. This is because business diversification increases your chance of facing financial risks if not handled by an expert in this field.

A CFO is a key person who will be consulted with before a diversification strategy is implemented. He will advise on the funds that will be available and the return on investment on the various diversification strategies. In addition, a CFO will advise the board of directors on the risks that will be involved and the ways in which the risks can be managed.

5. When Your Global Expansion Plans Involve Major Financial Risk Planning and Compliance Management

Expanding your business globally is quite challenging if you don’t have the right team on board. When you want to take your business to a different country, there are several risks associated with it, such as foreign exchange risks, political risks, and complying with the country’s rules and regulations.

To reduce the impact of potential risks your business will encounter overseas, a CFO can formulate hedging strategies and help you purchase political risk insurance. In addition to this, the CFO will be able to offer expert guidance and direction on market entry costs and potential sales revenue.

6. When You Consider a Public Listing Increasing Your Market Value to Near a Billion Dollars

When you decide to sell to the general public, it requires vigilant financial planning. The CFO will be able to use their understanding of listing to plan where the company is headed and explain this to the investors. A CFO’s valuable insights and planning can help your company when your market value increases due to public listing.

Partner with an Executive Search Agency for Hiring a CFO

1. Find Out CFO Position Strengths at Your Competitors Through Competitive Talent Mapping

Competitive talent mapping enables you to receive crucial market knowledge and competitive insights from the companies you are up against. So, use this strategy to dive deep into the roles and strengths of CFO positions at competitor firms in different markets.

Market talent mapping for CFO roles enables you to get deeper insights into the key qualities, duties, responsibilities, qualifications, skill sets, salary, incentives, etc., related to CFO positions in your industry segments.

You will be able to create a reference document based on market mapping that can be used for best-match candidate identification. This document comprises detailed information about the role, responsibilities, opportunities, career, and educational requirements of the candidates.

2. Get Key Insights into Best Practices in Start-up CFO Hiring Practices

CFO headhunters help you understand how to improve and streamline your CFO recruitment processes. Setting up the right recruitment strategy, approach, and hiring stages is also essential to present your employer brand in a better light.

3. Get Access to Superior Nationwide and International CFO Talent Pools

Executive search firms are professionals well equipped with expert knowledge, skills, and the resources required to effectively and efficiently seek potential candidates to be employed in high-level positions within companies. Executive recruiters have connections with top executives, national and internationally, therefore, offering you easy access to the otherwise inaccessible people and their network.

4. Get Assistance in Best Match CFO Candidate Identification

You can get assistance from CFO staffing recruiters, who can conduct a comprehensive recruitment process to ensure the perfect candidate fills this executive position. Moreover, CFO staffing experts use their detailed analyses of your company’s work culture, future strategies, mission, and administrative structure to find candidates that fit the criteria.

5. Get Interview Management Support

You could arrange for pre-and post-interview discussions with the CFO headhunter service firm regarding each candidate’s resume, qualifications, strengths, and motivation. Reputed and experienced CFO recruitment agencies have extensive experience in assisting with framing interview formats, scheduling interviews, and managing the administrative work related to interview management.

6. Get The Benefits of a Thorough Background Check

CFO staffing experts also offer detailed background and reference checks from any perspective you decide – academic or professional. You can rest assured that there is nothing in the market about any fraudulent activities conducted by the potential candidate or complaints by previous employers about shady activities.

Alliance Recruitment Agency-UAE

Alliance Recruitment Agency is a well-established agency offering high-quality recruitment services in the UAE for over a decade. Our company has facilitated C-Level recruitment of more than 100 organizations.

Our extensive industry experience has enabled our executive search team to conduct high-quality nationwide and international talent CFO staffing searches. We have expertise in market mapping and best match candidate search and sourcing. We can help you in hiring a CFO in the most optimized manner.