Maraz as a strategic partner in the financial management of your company
The figure of the Chief Financial Officer (CFO) is key for any company. We understand that a company has a CFO when the Manager/CEO has a CFO accompanying him/her in the company’s strategic planning, translating the company’s strategy and goals into numbers.
However, not all companies need a full-time CFO. SMEs do not have this figure due to the high cost of hiring a high-level financier.
In order to meet this need, Maraz is positioned as a financial partner to boost business growth by providing the service of external CFO in Spain for companies that need to efficiently manage financial functions. This role is tailored to the needs of each company, allowing SMEs to count on a first level financier when it comes to planning strategy, investment and financing decisions.
What is an external CFO and why does your company need one?
External CFO refers to a senior financial executive who works on a part-time basis, rather than being a full-time employee. This allows small and medium-sized companies, or startups, to access high-level financial expertise without incurring the costs associated with hiring a full-time CFO. This role is particularly useful for companies that need financial leadership, but are not large enough to justify hiring a full-time CFO. Having an expert to guide critical financial decision making can be of great benefit to Company Management and Ownership. The role of the Fractional CFO in rapid growth phases becomes especially decisive when the company scales faster than its financial structure.
Our goal as a CFO is to increase the value of your company by focusing on increasing profitability and growth, which is reflected in increased cash generation for your company.
Key functions of an external financial manager
An external Chief Financial Officer (external CFO) provides strategic vision and specialized financial management without the need for permanent incorporation into the company. Their role is key to optimizing solvency, improving profitability and ensuring efficient decision making.
The external CFO will be tailored to each specific case depending on the complexity of the company, the situation it is going through and the financial team available in the company. The external CFO is a collaborator that complements the company’s financial department. As specialists in corporate finance, we focus on the three key decisions that a financier has to make in order to increase the value of his company:
Investment
The first decision is the strategic approach to be taken by the company in the coming years. The decision of the market segment in which to position itself and what competitive advantages to develop, must be based on a financial and strategic analysis that allows differentiating those scenarios that offer greater growth and profitability.
Financing
Once the business plan has been developed, the different sources of financing available, whether bank financing, private debt, capital markets, etc., must be analyzed. The decision has to be made based on the financing option that is least costly, but has sufficient flexibility to develop the business plan. The External CFO can assist in the efforts to raise capital, manage investor relations and prepare financial reports.
Shareholder remuneration
The main objective of a company is to provide value to its shareholders. Once the investment and financing strategy has been decided, the financier has to study how to maximize shareholder return, with the least possible fiscal impact and without harming the company’s solvency.
In conjunction with support in:
Strategic financial planning
Strategic advice and design of long-term financial strategies, cash flow management, budgeting and financial projections.
Cost management
Identify areas where costs can be reduced and increase efficiency in the company’s financial operations. Adequate cost measurement and review of the cost system both in the production of goods and in the service sector.
Design and quality improvement of financial reports / scorecards
The focus is on the design of financial and management reports in such a way that they are adapted to the needs of each company, that they are sufficiently reliable, that these periodic reports are generated quickly, as well as the analysis of deviations and quality explanations of the fluctuations of the different parameters and ratios.
Financial management in stressful situations
Continuous support in the management of companies in cash flow difficulties or in complex situations to manage.
Support to Finance Department / management / board / partners
The external CFO can, in addition to supporting the Finance Department, assist in specific consultations or specific missions that may arise from the Management, the Board of Directors or directly from the Partners, such as negotiating financial covenants with the banks, since in medium-sized companies it is common for the ownership of the company, the Board of Directors and the Management to coincide.
Advantages of hiring an external CFO on a part-time basis
The Outsourced CFO offers a flexible and cost-effective alternative for companies that need the expertise of a CFO, but cannot justify hiring a full-time CFO. In addition to cost and flexibility, there are other important issues that companies should keep in mind when considering this type of service:
1
Adaptability to the culture and the team
An external CFO must quickly integrate into the corporate culture and work seamlessly with the management team. Even though their role is temporary or part-time, it is important that they feel like part of the team, understand the company’s values and communicate effectively with all departments.
2
Scope of responsibility
It is essential that companies clearly define the responsibilities of the external CFO. They can be as broad as full financial oversight, or more specific, focusing on areas such as cash flow management, raising financing, tax planning, or audits. A clear description of objectives and expectations from the outset avoids misunderstandings and ensures that the company’s needs are met.
3
Confidentiality and trust
The external CFO will have access to sensitive financial data, so it is crucial that companies establish confidentiality agreements and strong contracts to protect the information. Trust is key, and the CFO’s track record and reputation should be reviewed prior to hiring.
4
Benefits for startups and growing companies
External CFOs are especially valuable for startups and growing companies that do not have the financial infrastructure to justify a full-time CFO. These professionals can help startups establish sound financial processes from the outset, prepare the company for investment and avoid costly mistakes.
5
External vision
An external CFO brings an objective and unbiased perspective that can be very helpful in identifying financial problems, inefficiencies or areas for improvement. Because they are not immersed in the day-to-day operations of the company, they can offer fresh, results-oriented strategic recommendations.
6
Networking
Many external CFOs have an extensive network of contacts in the financial world, including investors, banks and other key professionals. This can be a significant advantage for companies looking to raise funds, negotiate financial terms or connect with strategic partners.
7
Specific projects
A company may need an external CFO for specific projects such as:
- Financial restructuring.
- Mergers and acquisitions.
- Implementation of a new accounting system.
- Cash flow optimisation.
- Preparation for an audit. In these cases, an external CFO is the most efficient and cost-effective option, as it can be hired for the duration of the project only.
8
Mentoring and development of the finance team
An external CFO can not only lead finance, but also mentor and develop the internal finance team. This is particularly useful for smaller companies that may have junior or less experienced finance staff. The external CFO can help structure and professionalise the department.
9
Duration of the commitment
Although external CFOs may be hired on a short-term basis, many companies choose to maintain the relationship for the long term. This continuity can provide stability and ensure that financial decisions are consistent with the company’s overall strategy.
Who is our external CFO service for?
Companies that need expert financial management without a CFO on staff. Ideal for growing SMEs, medium or large family businesses, startups, companies in restructuring processes or those looking to optimise their financial management with a strategic and flexible approach.
The External CFO service is primarily aimed at companies that need high-level strategic and financial support, but do not require or cannot justify a full-time internal CFO. This service is particularly valuable for certain types of companies that are at specific stages of their lifecycle or facing complex financial situations. This service is aimed at SMEs, startups and also large companies that require the development of a specific project or are in complex situations to manage and need a senior CFO for a period of time.
The following cases are considered:
Startups and SMEs
In cases where they do not have the internal resource of a qualified CFO in the context of rapid growth or search for financing.
Medium or Large Company
In Financial Restructuring processes. In these cases, an external CFO can provide the necessary expertise to redesign the financial structure, optimise costs, and seek long-term viability.
Companies in Bank Refinancing Processes
Facing a complex financial situation
Temporary replacement
If a company is in the process of hiring an internal CFO or the current CFO is on leave for some reason, or has left the company and there is no replacement, an external CFO can serve as interim.
Companies with Specific Needs in Financial Areas
If the company is struggling to manage its cash flow, an external CFO can implement liquidity control systems and improve the management of working capital to mitigate cash flow problems.
Family Businesses in Succession / Transition Processes
Family businesses that are going through a generational succession or transition process may need an external CFO to manage the financial process during the change and ensure that the financial aspects are well structured for the next generation.
Advantages of hiring an external CFO in Spain with Maraz
Hiring an external CFO with Maraz can offer numerous advantages for companies at various stages of their development. Here are some of the most relevant ones:
Cost reduction
The external CFO service is temporary (N0 is a fixed and permanent cost) and is paid on an hourly or project basis, which can be more economical. There are no costs related to insurance, training, equipment, physical space, etc.
Access to high-level expertise
At Maraz we have extensive experience working with companies in different industries, stages and situations (such as restructurings, refinancings, distressed situations or acquisitions). We provide strategic expertise without the need for a long-term commitment.
Flexibility
We are contracted for specific projects or at key moments, such as during a financial crisis, expansion, search for financing or process optimisation. Scalability according to the needs of the company, adjusting the number of hours or the scope of services.
Strategic approach
By being external to the company structure we bring an impartial and fresh perspective, which is crucial for identifying issues and opportunities that an internal team might miss. We can focus exclusively on strategic issues, leaving the day-to-day operational tasks to the internal team.
Rapid decision making
We have experience in similar situations and can help accelerate critical decisions with robust financial analysis and well-founded scenarios.
Access to our network of contacts
At Maraz we have an extensive network of contacts, including investors, banks, consultants, and other professionals that can be useful for the growth or transformation of your company.
Our success stories
At Maraz, we measure our success by the real impact we have on each company we work with. Through a strategic, personalised, and pragmatic approach, we have helped numerous companies.
Client Testimonials
The best proof of our commitment and excellence is the results we generate. Our clients rely on Maraz for the provision of the External CFO service with customised solutions and expert support.
Alfredo Muñoz Quiles
Excellent professionals. Capable, trained, honest and attentive.
Ignacio Orts
Javier is very professional, diligent, direct and honest, with an enormous experience, which makes him a safe bet.
Jorge Mataix
A reference consultancy.
Javier, a great professional at the head of it.
Jose Joaquín de Rojas Roca de Togores
Great analytical skills, simple and elegant solutions to complex problems. Complete mastery of the peculiarities of medium-sized companies and family businesses, absolute professional solvency. Highly recommended for his extensive experience and honesty as a consultant.
Mario Fornés Olmo
Javier is a great professional and a very good person. Undoubtedly, whoever is looking for a sincere and quality advice will find his place here. He provides very practical and well-founded solutions. Whoever takes Javier’s advice will be sure to be in the best hands. 100% recommendable.
Salvador Blasco Magraner
Excellent work. A great team of professionals and above all good people who transmit confidence from the first minute.
Frequently asked questions about external CFO
We have compiled the most frequently asked questions about our External CFO services for companies. If you do not find the information you are looking for, please contact us and our team of experts will be happy to advise you.
What is the Ideal Time to Hire an External CFO?
Below are some key scenarios and signals when the time may be right to bring in an external CFO:
- During accelerated growth
If the company is experiencing a rapid growth process and needs a clear financial strategy to manage the increase in revenues, expenses, investments and operations. And it becomes necessary to optimise financial processes to ensure that the company grows sustainably. - Need to structure finance
When current financial systems are rudimentary or not adapted to current business needs, and accounting, cash flow and financial reporting are not sufficiently accurate or clear to make informed decisions. - Seeking funding
When you plan to raise investment, whether venture capital, private equity or debt, and you need a professional with experience in preparing financial projections, valuations and investor presentations. Investors demand more sophisticated financial reporting and clarity in capital management. - Financial crisis situations
When the company faces cash flow problems, indebtedness or declining profit margins. Financial restructuring or cost reduction strategies need to be developed. - Mergers, acquisitions or sales
When the company is considering an acquisition, merger or sale, and expertise is needed to conduct valuations, manage due diligence and negotiate transaction terms. Or, the company plans to buy or merge with another company and requires strategic financial support to assess the impact and structure the deal. - Expansion into new markets
When expansion into new geographic markets or lines of business is being evaluated, requiring financial feasibility analysis and strategic planning. Sound financial projections and investment plans are needed to support expansion. - Need for advanced financial reporting
When current financial reporting is not sufficient to meet the demands of investors, directors or regulators. It becomes necessary to implement advanced tools and systems to provide real-time financial data and ensure transparency. - Lack of internal financial expertise
When the business has grown beyond the capabilities of the current finance team, such as accountants or controllers, and requires a level of strategic expertise that is not available internally. You are looking for someone with expertise in strategic planning, tax optimisation and risk management. - During key transitions
When the internal CFO has left the company and a temporary solution is needed to maintain stability. The company is in a transition phase, such as professionalising its management or seeking external certifications and audits. - Profitability optimisation
When the company needs to identify opportunities to improve margins, reduce costs and better manage cash flow. Detailed analysis is required to prioritise initiatives that increase profitability in the short and long term.
What Level of Confidentiality is Handled with my Company's Financial Information?
The level of confidentiality that a financial advisor must maintain with your company’s financial information is very high and is regulated by both ethical principles and applicable law.
As a matter of ethical and professional obligation, external financial advisors, such as external CFOs or consultants, often work under contracts that include Non-Disclosure Agreements (NDAs). These documents state that they cannot disclose any information about your company to third parties without your explicit authorisation.
In addition, general data protection laws, such as the GDPR (General Data Protection Regulation) in Europe or similar legislation in other countries, also apply if financial data contains personal information.
Any information the advisor receives from your company should be considered confidential, including:
- Financial statements, cash flows and balance sheets.
- Pricing strategies, projections and business plans.
- Customer and supplier data.
- Contracts and commercial agreements.
- Intellectual property or strategic information.
How will the External CFO integrate with my Task Force?
At Maraz Corporate Finance, we understand that effective collaboration between our external CFO and your team is key to achieving tangible results. That is why we have designed an agile and strategic approach that ensures a seamless integration with your organisation.
- Initial Diagnostics and Business Understanding
From day one, our external CFO is dedicated to thoroughly understand your company: your business model, strategic objectives, financial processes and current challenges. This diagnosis allows us to identify priorities and develop an action plan aligned with your goals. - Strategic Collaboration with your Team
The external CFO works as an extension of your team, complementing internal capabilities without replacing them. He or she works closely with the finance team to optimise processes and ensure efficient workflow management. In addition, he or she interacts with the heads of other key areas to align financial strategies with overall business objectives. - Clear and Efficient Communication
To ensure smooth integration, we establish regular communication channels, including regular meetings, strategic reporting and defined points of contact. Our objective is that both management and operational teams have access to clear and actionable financial information. - Systems and Tools Optimisation
If we detect areas for improvement in your current financial processes or tools, our external CFO will guide you in the implementation of technological solutions adapted to your needs, helping to increase efficiency and transparency. - Strategic Leadership and Independent Perspective
As an external advisor, our CFO brings an unbiased and objective view, offering strategic solutions backed by experience. Whether it’s finding financing, optimising costs and cash generation, or managing risk. We act as a reliable partner in your company’s critical decisions. - Flexibility and Adaptation
We understand that each company has unique needs. That’s why we adjust our level of involvement and presence as required by your business, whether it’s a one-off project or ongoing support.
Other Maraz services
In addition to our Corporate External CFO service, Maraz offers a range of services designed to boost your company’s growth, solvency and profitability.
