THE CFO AS THE CENTRIC CHALLENGER – "LET'S TALK ABOUT THE NUMBERS...AND OTHER THINGS!"

DECEMBER 2019

The CFO’s role has undergone a major evolution over the last few decades. How has this profile changed? What are the upcoming challenges and requirements for the CFO and how can you find the right candidate in the market?

AlixPartners shows why and how the CFO should become the centric challenger in the organization to increase enterprise value. In addition, it is pointed out how organizations can develop themselves towards this understanding.

Russell Reynolds describes the approach to identify the best suited CFO for your specific organization, sets out the search criteria and how a search process looks like.

This sentence usually introduced the presentation of past CFOs. The presentation often included the latest numbers but nowadays goes much further and gives answers to questions of strategic importance in the company’s life. The CFO's role previously focused on looking and analyzing backwards, and requirements have changed dramatically. Accounting and reporting are still essential elements of a CFO's role, and there is an increasing requirement for forward-looking analyses, strategic assessment, and quantifying and driving the value in executing strategic initiatives. A new CFO model has been established. Let´s get to the facts:¹

• The average CFO has six years’ experience, but one third of CFOs have less than three years’ experience

• Approximately 50% of CFOs have held this role in another company

• Approximately 40% of the CFOs have worked abroad

• Approximately 20% of CFOs have experienced significant restructuring

• 10% have a background in consulting and another 10% have gained a Top Business School MBA

• Less than 10% of CFOs are female

1. 'LETS TALK ABOUT THE NUMBERS'

1. Based on an analysis of MDAX and SDAX CFOs prepared at the beginning of 2019

2The CFO as the Centric Challenger – "Let's talk about the numbers...and other things!"

3

The role of the CFO has evolved from a “bookkeeper” to an integral partner in conveying the strategic vision of the company and supporting complex company structures. The CFO has become much more centric within the organization and more strategic to its development. What does that mean: Today, success is increasingly measured by implementation speed, visible change, profitability increase, and value creation. Everything that happens in an organization is somehow reflected in the numbers: if fluctuation is above average, if a company is transformed, acquired or divested – the CFO and the Finance team can always see the impacts first hand in the numbers. And therefore have a complete overview of an organization, its strengths and weaknesses and how it develops. Consequently, the CFO as gatekeeper of information has become a central success factor for transformation and the ultimate sparring partner for the CEO.  

BUT WHAT ARE THE CHARACTERISTICS OF THIS TYPE OF CFO?

We observe 6 characteristics to describe the CFO as a centric challenger. Today a CFO is nearly never one single type but a mixture, depending on the major share and stakeholders, the industry and the individual situation. Companies undergo different phases much faster than in the past. An acquisition can be quickly followed by a transformation while at the same time fluctuation rates increase and a new ERP system needs to be adopted.

1 Leadership Excellence

As part of the management team, the CFO establishes the navigational instruments – the compass for success. The CFO is the devil’s advocate, who knows the processes and structures of the company and can read and translate observations into financial success.

2 Strategic Excellence

The CFO designs the strategy of the company by establishing the framework by which success is measured. The CFO is the judge concerning the success of the company.

3 Performance Excellence

As Performance Manager, the CFO proactively ensures cost competitiveness. This means permanently measuring and calibrating against competitors and identifying trends concerning risks and opportunities.

4 People Skills Excellence

The CFO builds a team to work accurately, effectively and efficiently. The team should have a mix of functions and competencies to ensure an ability to react quickly to situations such as restructuring or big data handling. The CFO leverages diversity and further broaden the skills of the team.

5 Communication Excellence

The CFO is an experienced communicator for internal and external stakeholders, for example, works councils, banks, investors, etc..

6 Know-How Excellence

Besides standard financial functions such as controlling, accounting, and treasury, the CFO is the brain and innovator for 'Special Situations' such as M&A, integration of companies, introduction of ERP systems etc.

FIGURE 1: FINANCE OFTEN REQUIRES AN UPSIDE DOWN APPROACH OF THINKING – ADDRESSED THROUGH THE CFO AS A CENTRIC CHALLENGER

Tradi t ional v iew Increasing impor tance

Forward looking analysis

P&L driven financial and management repoting

Accounting and transactional processingFollow the business

Centric business challenger and leader in commercial thinkingForward looking preserving/enhancing value and cash

Relevant financial and management reporting

Slim accounting and transactions

GU

IDIN

G P

RIN

CIP

LE

Hig

hLo

w

TIME AND EFFORT INVESTED

Source: AlixPartners

The CFO as the Centric Challenger – "Let's talk about the numbers...and other things!"

4

SO WHAT: DOES THE CFO DRIVE THE COMPANY’S VALUE?

The CFO's impact on a company is dependent upon the situational requirements and can have varying impacts on Total Shareholder Return, share price, and ultimately shareholder value.

We characterized CFO profiles based on public information. This analysis contained criteria such as education, experience, career development and also former restructuring and cost cutting experience.

The regression analysis shows a positive correlation between CFOs with broad experience in line with the centric challenger competence matrix and Total Shareholder Return in the last couple of years.

Additionally, there is a correlation between the CFO as a centric challenger and the share price development vis a vis their peers.

FIGURE 2: REALIZING SUPERIOR RETURNS

Corre lat ion of the CFO character ist ic as Centr ic Chal lenger and Shareholder Return

Centric ChallengerLess Full

TO

TAL

SH

AR

EH

OLD

ER

RE

TU

RN

(T

SR

)

20%

0%

60%

40%

A CFO with stronger characteristics as centric

challenger achieves higher returns

Source: AlixPartners

The CFO as the Centric Challenger – "Let's talk about the numbers...and other things!"

5

What does Russell Reynolds observe when searching for the ideal CFO candidate? What do we think about when changing CFO profiles? While we can see CFOs switching industry much more often than any other function, not every CFO is suitable for every type of organization. Generally, we can distinguish between four types of CFO: the Generalist, the Finance Expert, the Growth CFO, and with increasing importance the Centric Challenger.

The Generalist. Generalist CFOs usually have spent part of their career outside the Finance function, e.g. in strategy, operations or general management. These CFOs tend to be hands-on and very deep into business operations. Often this type of CFO comes with detailed industry know-how.

The Finance Expert. This CFO has spent his or her career in the finance function. Most likely first position(s) were in controlling. This type works well in decentralized organizations, when building up a company or in a situation where a company must be refocused/restructured.

The Growth CFO. These CFOs are often hired for their network, their independent thinking and their strategic insights. Often, they have spent a large share of their career in investment banking, consulting or private equity.

The Centric Challenger. These CFOs have a track record with transformations. They focus on cost management, work with KPIs and scorecards as well as on the standardization of data and systems. These CFOs work very well in restructuring situations.

Often a mix of several CFO types is needed. At the beginning of every CFO search, there is the calibration of the ideal role profile. The above described archetypes can be used as a basis for discussion. In addition, technical know-how and leadership competencies need to be assessed.

Particularly in our work with Private Equity companies there is an increasing need for candidates to be characterized as, or at least show strong traits of a Centric Challenger.

The following questions can help when calibrating profiles:

• Is there a need for industry expertise? • Is the company in a transformation situation and is

respective expertise needed? • Is the company facing digital challenges which need

to be supported by the CFO? • Where is the focus on growth for the upcoming years

(products, regions, …)? • Is there a need for international experience (scope)? • In case the company is private equity owned – is it

necessary that the CFO has worked in a company with the same ownership structure before?

• Which technical aspects are important? − Financial Reporting and Controlling − Financial Planning and Analysis − Tax − Treasury − Risk Management − M&A − Restructuring − Audit − Shareholder / Investor Relations − Legal / Compliance − …

The list of questions is dependent on the specific company.

2. WHO IS THE BEST CFO FOR YOUR ORGANIZATION?

The CFO as the Centric Challenger – "Let's talk about the numbers...and other things!"

6

3. CORNERSTONES AND ALIXPARTNERS EXPERIENCES IN SUPPORTING THE CFO AS A CENTRIC CHALLENGER? The CFO's central requirements include a clean management of transactions and entries, monthly reporting, and completing the annual budget accurately and on time. Our experience has shown some clients lack these core competencies. Issues can stem from an exaggerated savings plan postponing system updates and implementation, a lack of capabilities, or an unnecessarily complex corporate structure which has grown after multiple acquisitions but has never been organized or standardized. Transparent financial data is not standardized among most companies. In our experience, there is hardly a correlation between the size of a company and the quality and consistency of their financial data.

FIGURE 3: HOW TO ESTABLISH AN EXCELLENT FINANCE DEPARTMENT AS CENTRIC CHALLENGER?

Source: AlixPartners

DYNAMIC IN SPECIAL SITUATIONS

OPTIMIZE THE FINANCE FUNCTION AS CE NTRIC CHALLE NGE R AND BE THE E NABLE R OF PE RFORMANCE

Per formance in changing environments: Restructur ing , Change of Ownership, t ransformational changes , etc .

FO

CU

S F

OR

B

ES

T P

RA

CT

ICE

SO

PE

RAT

ING

E

XC

ELL

EN

CE

ACCUR ATEt ransact ion processing , account ing and c losing

commercial ly re levant repor t ing t rack ing and

communicat ion

E FFECTIVEcost conscious f inance

footpr int

E FFICIE NT

• Master Accounting & functional competence• Drive base data quality• Understand the business need• Master financial analysis

• Support decision making• Forward looking visibility & tracking• Surprise free communication to all stakeholders• Challenge the leadership team

• Establish process, system and technical excellence• Ensure speed • Manage a cost conscious footprint• Offshore, nearshore, outsource

We segmented the CFO agenda into four segments. The first three segments can be summarized as 'Operating Excellence':

1 Accuracy

2 Effectiveness

3 Efficiency

The fourth segment reflects the competence in 'Special Situations' such as merger & acquisitions, post-merger integration, carve outs, or restructuring. These situations usually require the CFO to ensure a milk run process, to be the orchestrator of competencies, time, and activities.

The CFO as the Centric Challenger – "Let's talk about the numbers...and other things!"

7

CFO as driver of a Pro-Active Turnaround (PAT)

Companies increasingly need to react on a short-term basis to be prepared for the future. Early improvement efforts in response to market conditions are often painful, lack clear strategic vision, and do not achieve sustainable results. AlixPartners’ Pro-Active Turnaround (PAT) has the unique ability to recognize a turnaround before the restructuring phase. It is positioned to create a holistic and sustainable transformation by improving the organizational, operational, and financial performance.

It is normal for companies to underperform during phases of its business cycle. It is the goal and duty of the CFO to recognize the end of the growth phase / beginning of the plateau phase and launch pro-active counter-measures to avoid cost inflation and protect the company’s value. Counter measures should not only tackle the typical cost reduction areas, i.e. personnel costs and procurement but also optimize products, go-to-market strategy, and the overall operations of the company, i.e. processes, tools, and footprint.

Benedikt Friedrich, AlixPartners

How can the CFO generate accurate numbers?

We observed this challenge at an automotive supplier with several sites. Numbers didn’t match, and a consolidation was not possible due to different data structures. Within a short time frame we established a database which contained the full set of data including criteria to consolidate and sort as required. The data was linked to a simple visualization and very quickly big data was sorted and organized to enable timely and topical feedback.

We organized a one day workshops to develop the information needs and criteria (for example a standardized chart of accounts logic) and requirements for a more detailed analysis. This was the basis for a dashboard. With this process all decision makers and experts had been involved and an aligned dashboard was established – ready to use. This process was set up over a few months and did not require a lengthy implementation of accounting software.

Philipp Schuller, AlixPartners

Accuracy

A typical challenge for financial data is the poor quality of sub-information for single entries. Creating a standardized framework, for example a chart of accounts, a cost center structure, a post-calculation, or a global consolidation can be a major challenge without clear and consistent information. Even after it is set up with a clear and standardized structure, it can take years to become comparable.

In addition, there are added complexities when confronted with challenges associated with IFRS, tax, and other information needs from stakeholders.

How can the CFO speed up and establish a clean and standardized structure?

One example shows how digital tools can help the CFO to ensure a clean set of data.

Effectiveness

Effectiveness shows how well Finance can support the business. This might include the right design and implementation of KPIs, an accurate reporting structure used to measure business performance, the ability to identify shortfalls, and a plan to create countermeasures.

This reporting structure requires alignment between the finance team and internal/external clients, such as functional departments or shareholders.

But what is the advantage of good reporting, if the findings do not lead to consequences and reaction? A proper reaction is the cornerstone of the CFO being an effective leader. We recommend a pro-active approach to transfer information into actions and results.

The Pro-Active Turnaround (PAT) is a tool and approach which AlixPartners has developed to support the effectiveness of the CFO and management as a whole.

The CFO as the Centric Challenger – "Let's talk about the numbers...and other things!"

8

The CFO as enabler to realize value

In sell-side M&A, the CFO needs to make sure that the price received for the assets or business to be sold is at least equal or higher than the value given away. In the preparation phase, a holistic set of actions including target setting, alignment of shareholders' goals and validation of exit options considering value proposition and potential from value uplift initiatives needs to be undertaken. This includes elements like deal structuring, equity story and development of value maximizing sales process design.

In such a situation, we advised and implemented a transaction value optimized business plan together with the CFO. Since there was no business plan reflecting the transaction scope and improvement projects in place, we assessed inherent risks and identified mitigation measures for a robust base line, we quantified and prioritized (additional) improvement projects by developing actionable initiatives with an implementation plan and clear responsibilities, and set up an XMO office to track and monitor execution in time. To enhance credibility and accuracy, management estimates were backed by using existing data to perform R-based predictive analytics forecasts. The integrated business plan (P&L, BS and cash flow) incorporated the transaction scope and all identified and (partly) executed improvement potentials in line with the equity story, supporting assumptions, documentation and presentations for the investor process.

As a result, the business plan was more robust addressing a higher transaction value considering additional EBITDA contribution levers. This promoted transaction security due to clear transparency of improvement initiatives backed by investor needs and in line with the equity story.

Michael Wabnitz, AlixPartners

Efficiency

Accuracy and effectiveness support the CFO to further develop the business. But how can the CFO, as a role model, efficiently design his own finance department? In recent years, many companies have tackled the requirement to ensure adequate output in the finance department with fewer costs, especially using near- or offshored shared service centers, outsourcing or other SG&A measures. In addition to costs, many other road blocks must be considered. A client example demonstrates what the CFO should keep in mind.

Special Situations

While the above mentioned three segments reflect the routine CFO environment, there are also situations where the combination of operational, functional and financial expertise is required. By considering these elements together, superior value creation is achieved. Acting as a Value Guardian, the CFO ensures that decisions to be made and executed in special situations are backed by and lead to value add for shareholders and/or relevant stakeholders.

In changing environments, the CFO takes on responsibility in order to establish tailored value solutions for different special situations. As such, he drives value increasing structural initiatives in restructuring situations improving cash and EBITDA, promotes identification and realization of value in buy and sell-side transactions to balance price to pay vs value to receive (and vice versa), or captures the value transformation when establishing new target operating models.

As an example, the CFO’s task is to ensure realizing the full potential in a sell-side transaction by undertaking a value maximizing process – our case proves the additional benefit of a transaction value optimized preparation when it is time to get ready for sale.

The CFO as role model for efficient processes

Driven by cost pressure, our client was required to analyze options to outsource approximately 1,500 employees in the Finance department. The process landscape was extremely complex and significantly above benchmark driven by an inhomogeneous IT landscape and undefined processes after several mergers. Data quality was poor.

The key question: How, and in what time-frame and sequence, can processes be packaged and outsourced without giving up synergies to the outsourcing partner.

The success factor was the prioritization and segmentation of processes based on criteria such as centralization, current quality, and strategic meaning.

While some processes were mainly transaction driven and could be transferred into a standard outsourcing setup, other processes were more complex and of strategic importance for the company. Other criteria were the risk of outsourcing and the financial impact. With this approach debtor and creditor accounting together with T&E, and simple sales supporting processes in high cost countries were outsourced first.

Peter Neubacher, AlixPartners

The CFO as the Centric Challenger – "Let's talk about the numbers...and other things!"

9

While economic situations such as restructuring or strategic reorientation, i.e. corporate acquisitions, require a dedicated CFO, shareholder characteristics can also significantly influence the requirements of a CFO.

A financial investor is focused on the enterprise value. This happens in an environment which is significantly leveraged by debt with the investor asking for material co-determination in parallel. In simple terms: Significantly more risk, more leverage, and more stakeholder and shareholder communication.

Even more important is transparency in the presentation of the company’s situation. In our experience, this requirement causes problems in most companies, especially those owned by private equity for the first time. The monthly reporting of the finance department is usually 30 to 50 pages and makes statements regarding profit and loss with explanations and outlook, deviations from plan and budget (adjusted for special and currency effects), liquidity and its 12 months outlook, status of investments, development of working capital, risks in the balance sheet, statements on covenants and headroom on the requirements of the credit agreement, and extensively tracks current activities. This report and many others are requested to satisfy the minimum needs of the investor. In rare cases, this can be achieved without

changing systems. Often enough, the credit agreements already create information requirements that cannot be met.

Ideally, the CFO takes over the role as a moderator and compass to identify and, if necessary, to drive the implementation of potential opportunities. In doing so, the CFO is better positioned to identify value potential at an early stage and inform the rest of the management. An uncontrolled discussion without facts usually makes the investor nervous and frames management as incompetent. After identifying potentials, the CFO drives the implementation and visibility in the income statement and/or balance sheet. If able, the CFO helps to create value for financial investors.

The investment period of the investor is limited and after 3 to 5 years, the company will likely be resold. The management of the company does not have more than 2 to 3 years to identify and implement value creating initiatives, because there is a lagging period from when actions are implemented to when they appear on the financial statements. Therefore, inaction and errors in identifying value creation cost more the longer it takes. In fact, many issues, such as relocation or a dramatic strategic shift, take much more time and therefore need to be developed and executed quickly and accurately.

4. THE PLACE OF BIRTH FOR THE CFO AS A CENTRIC CHALLENGER: PRIVATE EQUITY

The CFO as the Centric Challenger – "Let's talk about the numbers...and other things!"

10

The Interim-Manager

Following the bankruptcy of the parent and various sister companies of an automotive supplier, the lender was given control of subsidiaries with EUR 500 million sales and 9 production sites. This new owner had no holding and no management, so we took over the roles of CFO and the Program Manager for an earnings enhancement program.

There was an immediate need for strict cash management and plan to create transparency over operational and financial metrics. The stakeholders were given clarity about the real profitability, potential levers to increase value and initiatives to execute. Within a few days, we positioned ourselves in the central functions and had direct access to the levers for a profitability program that should increase EBITDA by 50%. The goal was to lead the company to a more prosperous future after ten years of frequently changing ownership. We therefore adopted the goal of: "finding the best possible owner".

Peter Neubacher, AlixPartners

5. HOW CAN ALIXPARTNERS SUPPORT THE CFO IN ITS ROUTE TO SUCCESS? AlixPartners supports the CFO and/or the organization in the implementation of success-critical projects in which experience and implementation competence are the highest priority. Consequently we only employ excellently trained top managers with relevant experience in line management or consulting.

Our services focus on transparency of effective reporting profitability growth, cash management and value creation as well as active support in stakeholder management. Success in critical business situations also includes active profitability improvement, through cost reduction and cost control or e.g. the reorganization of the finance department through shared service centers. In this context, we advise our clients on the topics of digitization and the pragmatic use of automation tools.

Another focus are 'special situations' such as advice on the purchase and integration of companies, complex carve-outs, support in adjusting to the needs of a financial investor and many other topics.

And of course, we complete these services with overall responsibility as interim managers. Interim management in the context of CFO services at AlixPartners means immediately taking on critical functions in the finance function and supporting and taking over responsibility with powerful teams in special situations.

1. REPORTING EXCELLENCE

• Monthly Reporting • Functional Reporting (Sales, Costs,

products, Capex etc.) • Forecasting and Early warning • Liquidity & Cash Forecasting

2. VALUE CREATION

• Business Planning • Cost Reduction • Program Management • Working Capital Management • SG&A Cost program

4. SPECIAL SITUATIONS

• Restructuring • Change of ownership • Private Equity structures • M&A • Synergy assessment & playbook

implementation • Due Diligence • Integration/PMI/Carve Outs

5. INTERIM MANAGEMENT AND LEADERSHIP

• CFO • CRO • Treasurer • Chief of Staff • Controller • Others • Risk Management for leadership team

3. FINANCE EFFICIENCY

• Organizational Redesign/Greenfield • Standardization • Feasibility Near-Offshoring • Shared Service Center Implementation • Outsourcing

FIGURE 4: OUR OFFERINGS

REPORTING EXCELLENCE

VALUECREATION

FINANCE EFFICIENCY

SPECIAL SITUATIONS

INTERIM MANAGEMENT

AND LEADERSHIP

13

2

4

5

The CFO as the Centric Challenger – "Let's talk about the numbers...and other things!"

11

6. HOW CAN RUSSELL REYNOLDS ASSOCIATES SUPPORT YOU IN THE SEARCH FOR A CFO?Russell Reynolds Associates (RRA) has more than 400 consultants globally, 60 of which deal with CFO searches on a regular basis; in Europe there are around 25 consultants who deal with the Finance function. In their searches, RRA consultants would always team up with relevant experts. In the case that industry expertise is required, the CFO consultant would liaise with a consultant who has the relevant industry expertise (e.g. chemicals). The CFO practice works closely with their clients in a boutique style with a customized approach. At the same time, they have access to RRA’s worldwide network of experts. Based on the high number of completed searches, RRA can quickly identify relevant candidates.

Upon initiation of the search, the consultant would discuss calibration profiles with the client to define the ideal candidate. The discussion helps to focus on what is important to the client as usually it starts out with a list of requirements that will not be possible to fulfill at the same time. The calibration profile discussion helps to define the search boundaries.

Depending on the complexity of the search, the process up to the point where the candidate signs the contract takes approximately three months. However, one should keep resignation periods and non-compete agreements in mind.

The graph below shows the indicative search process.

KICK-OFF

• Conduct organization analysis

• Draft position specification

• Tailor search plan/timeline

• Create list of target organizations

MAKE OFFER AND BEGIN ON-BOARDING

• Signed offer letter

• Announcement of successful candidate

ENTER THE TARGET MARKET

• Revise position specification

• Identity target organizations

• Build list of prospective candidates

SCREEN PERSPECTIVE CANDIDATES

• Conduct RRA interviews/assess competencies

• Interview internal candidates

• Weekly status calls

FINAL CANDIDATE SELECTION

• Prioritized 360o reference call list and background checks

• Compensation overview

• Identify the successful candidate

CLIENT AND CANDIDATE FEEDBACK

• Client feedback results

• Follow-up actions

• Thorough post- completion review

• Successful candidate review

OPEN SEARCH COMPLETE SEARCHNARROW THE FOCUS

1 TO 4 WEEKS 10 TO 12 WEEKS4 TO 10 WEEKS

1 2 3RRA PRESENTS CANDIDATES

• Candidate reports

• First round interviews with client

4CLIENT/CANDIDATE INTERVIEWS

• Additional first round of client interviews, if needed

• Finalist undergo RRA psychometrics and interviews

• Create short list

5 6 7 8

FIGURE 5

The CFO as the Centric Challenger – "Let's talk about the numbers...and other things!"

©2019 AlixPartners, LLP

CONTACT THE AUTHORS:

Peter Neubacher Director + 49 162 266 94 99 pneubacher@alixpartners.com

Benedikt Friedrich Senior Vice President +49 89 20 30 40 71 bfriedrich@alixpartners.com

ABOUT US

For nearly forty years, AlixPartners has helped businesses around the world respond quickly and decisively to their most critical challenges – circumstances as diverse as urgent performance improvement, accelerated transformation, complex restructuring and risk mitigation.These are the moments when everything is on the line – a sudden shift in the market, an unexpected performance decline, a time-sensitive deal, a fork-in-the-road decision. But it’s not what we do that makes a difference, it’s how we do it. Tackling situations when time is of the essence is part of our DNA – so we adopt an action-oriented approach at all times. We work in small, highly qualified teams with specific industry and functional expertise, and we operate at pace, moving quickly from analysis to implementation. We stand shoulder to shoulder with our clients until the job is done, and only measure our success in terms of the results we deliver.Our approach enables us to help our clients confront and overcome truly future-defining challenges. We partner with you to make the right decisions and take the right actions. And we are right by your side. When it really matters.

The opinions expressed are those of the authors and do not necessarily reflect the views of AlixPartners, LLP, its affiliates, or any of its or their respective professionals or clients. This article The CFO as the Centric Challenger – "Let's talk about the numbers...and other things!" (“Article”) was prepared by AlixPartners, LLP (“AlixPartners”) for general information and distribution on a strictly confidential and non-reliance basis. No one in possession of this Article may rely on any portion of this Article. This Article may be based, in whole or in part, on projections or forecasts of future events. A forecast, by its nature, is speculative and includes estimates and assumptions which may prove to be wrong. Actual results may, and frequently do, differ from those projected or forecast. The information in this Article reflects conditions and our views as of this date, all of which are subject to change. We undertake no obligation to update or provide any revisions to the Article. This Article is the property of AlixPartners, and neither the Article nor any of its contents may be copied, used, or distributed to any third party without the prior written consent of AlixPartners.

ABOUT RUSSELL REYNOLDS AUTHOR:

Daniela Nienstedt conducts searches for both Private Equity and Industrial clients. Within Private Equity she has placed investment professionals as well as C-level positions in portfolio companies. Before joining Russell Reynolds, Daniela worked as a management consultant for AlixPartners, L.E.K. Consulting and PA Consulting.

Telephone: + 49 162 26 69 502 Email: daniela.nienstedt@russellreynolds.com

ABOUT ALIXPARTNERS AUTHORS:

Peter Neubacher is a Director and member of the management board at AlixPartners. He has gained many years of experience as a CFO in industry and as an interim manager. Within the CFO practice Peter is focused on Private Equity and transformational situations.

Benedikt Friedrich is a Senior Vice President at AlixPartners. He is a finance and reorganization expert and has gained many years of experience in Pro-Active Turnaround (PAT) and international large-scale transformation situations.

The CFO practice group of AlixPartners in Germany contains – besides Peter and Benedikt – Michael Wabnitz, Marco Götz and Michael Tyroller.