Name: Thomas Bonney
Title: Senior Managing Director
Firm: CBIZ CMF
- Started and grew private equity-focused consulting firm from $0 in 2002 to $19.2 million in annual sales in 2016. Sold to CBIZ in June 2017.
- Winner of the 2016 M&A Advisor Financial and Professional Services Award for CMF’s post-transaction FORWARD™ Program.
- Winner of the Philadelphia Business Journal’s 2013 Outstanding Director Award for spirits company, Leblon, that Tom founded with two others in 2005 and sold to Bacardi in 2015.
- While running CMF Associates, received master’s degree in liberal arts from the University of Pennsylvania.
Earlier this year, the firm you founded – CMF Associates – sold itself to CBIZ. Can you talk about why you made that decision?
I started the firm in 2002, and around 2003 committed to growing an advisory firm dedicated to meeting the needs of national middle market private equity-backed companies. Three years ago, we saw the growth in private equity especially, but also in advisory services generally, and began looking for a platform to grow faster and develop a broader service offering. In 2017, clients are interested in one-stop shopping. We see this happening in professional services and have a shared vision with CBIZ in taking advantage of this market opportunity.
You are a recognized expert in working with middle-market private equity companies. What are the chief issues facing these companies nowadays?
In today’s world, technology is upending the business models of most industries. Leaders of these firms are challenged with understanding and reacting positively to the nature, timing and extent of these dynamics. They also need to plan for the impact on their near- and medium-term revenue and bottom line. Private equity is using their capital and expertise in helping middle market companies navigate through these issues. The shortage of “A” level talent within the middle market across all disciplines and functions further complicates the odds for success.
What is the biggest mistake accountants make when preparing for a public offering?
The biggest mistakes in this area are related to having the right people with public company experience at the helm in critical functions at the time of an initial offering. Second, companies consistently underestimate the rigor with which their finance and accounting operation needs to be upgraded from their current state of people, process and technology. Last, as a public company, leadership needs to up their game on the comprehensiveness, granularity and timeliness of its forecasting and FP&A capabilities.
Your firm does some executive recruiting. What are the qualities of an A+ CFO?
The bar for an A+ CFO is perpetually rising. Furthermore, there is a three-dimensional aspect to today’s best-in-class CFOs: 1. They need to have deep, broad experience that spans all aspects of finance, administration, technology and analytics. 2. The job requires one foot firmly placed in the company’s operations – CFOs can no longer hide out in their office, and 3. Macroeconomic trends, competition and overall business dynamics require CFOs to be deep thinkers and leaders, helping to set and course correct the company and its business model for the next five years.
To quote the famous quarterback Joe Namath, “When you have confidence, you can have a lot of fun. And when you have fun, you can do amazing things.”
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