Why Fractional CFO Is the Key To Growth – Amplēo | Business Ninjas Podcast
In this podcast, Andy speaks with Patrick McMillan, the CFO consultant and lead for the transaction advisory team at Amplēo, who provides business professionals, such as CFOs, CMOs, and CHROs, on a fractional basis in order to help organizations achieve their full potential. Amplēo’s services are tailored to companies in the growth stage that are seeking capital management, bank financing, or more visibility into their financials.
Patrick discusses the different phases of engagement that a client goes through when working with Amplēo. The first step is the scoping phase where they learn more about the client’s business, their strengths, weaknesses, and goals. From there, they put together an engagement letter that addresses the client’s needs and pain points.
The conversation delves into the importance of having accurate and timely financials for any business. Patrick talks about how Amplēo’s team of consultants works to clean up businesses’ financials, create dashboards and provide visibility to help business owners make informed decisions. They work with investment banking firms in preparing for transactions by ensuring that financials are in order, including being GAAP compliant, inventory is not overstated, and finances represent what happens economically with the company. Patrick notes that the earlier they get involved in the transaction, the better they can clean up the financials, ensure financial stability, and guarantee smooth bank reporting, among other things.
Patrick provides a general example of the transaction advisory process, which involves financial due diligence, quality of earnings, and cleaning up books to prepare for a sale. Post-transaction, Amplēo also offers purchase price allocation services.
Patrick goes on to share his story about how he joined Amplēo, describing how the company’s founder, Kent Thomas, started the firm in 1996. He talks about how he came to join the company, and the role he played in its growth, emphasizing the importance of hiring the right people.
Overall, this podcast offers valuable insights into the importance of hiring top-tier financial experts for businesses, especially when preparing for transactions. It highlights the role of Amplēo in ensuring that businesses have accurate and timely financials, which is crucial for making informed decisions. Amplēo’s services are tailored to the needs and pain points of companies in the growth stage, making them an ideal partner for companies seeking financial and accounting support during different stages of their growth. Amplēo has worked with companies ranging from pre-revenue to a billion dollars, with a sweet spot in the 2 million to 100 million range.