The search for and acquisition of financing is one of the functions in which the CFO can provide the greatest value. From startups to large corporations, they need to obtain the necessary capital that will allow them to launch a new product, drive a new project, or expand their activities, as may be the case, at the moment of acquiring a company.
One must not forget that one of the main responsibilities of the CFO is to ensure that the company has access to the necessary financial resources, according to the stage of the "life cycle" it is in. It remains a critical task, which demands much more than having the best skills to carry out a good negotiation.
For this, it is essential to have a defined and clear strategy that allows the identification of the type of financing that best suits the needs of the organisation, as well as determining the level of resources to be obtained, based on both the structure of its capital and the risk profile it wishes to assume.
The CFO must be capable of "building" a solid narrative that not only reflects the current state of the company but also manages to project, in a realistic manner, its financial "future," including the challenges and risks it is expected to face and how these will be overcome or their impacts mitigated.
At the same time, any projection to be made must be based and grounded on the understanding of the company’s business, as well as on what is expected not only in relation to its competition but also to the sector to which it belongs.
This narrative must be developed jointly with the CEO and, in certain cases, when more convenient, with the shareholders themselves, where the goal to be achieved is to obtain the best possible "translation" in financial terms of the company’s strategy, in such a way as to gain the trust of investors and lenders.
At Embat, we have been recognised at the BIGBAN Investors Spain Awards as the startup that has best captured the attention of investors, an accolade that highlights our ability to connect with investors and communicate the potential of what we are building. This recognition motivates us to continue setting new challenges for ourselves and to create solutions that provide real value to the financial teams of medium and large companies.
An investor always values transparency, which is why it is essential for the CFO to carry out effective communication in a clear and honest manner, where not only the growth objectives, profitability, and expected return on investment are highlighted, but also the obstacles, challenges, and risks inherent to the business.
All of this will tend to increase investor confidence, which remains the critical factor to be achieved, while also reinforcing the CFO's leadership role, demonstrating their knowledge of the business they manage.
Strengthening relationships over time is a critical aspect, where interactions with investors, potential partners, and stakeholders are relevant when it comes to obtaining the required financing.
One must not overlook the fact that it will be the CFO themselves who, in the future, will be responsible for managing and optimising the resources obtained in the most efficient way possible.
Now, beyond any technical capability the CFO needs during the negotiation phase, the development of their interpersonal skills is of particular relevance, where the ability to empathise with the objectives of those who can provide the resources to be obtained is something critical to manage.
Consequently, emotional self-management becomes a key aspect, which on many occasions represents one of the main challenges for the CFO, who is much more accustomed to interacting with the "left side of their brain," that is, with the one responsible for the more "rational" functions.
In other words, we can say that the search for financing is a relationship of trust, where the CFO must demonstrate all their leadership, supported not only by the vision they have of the business but also by a good management of the "emotional," which allows them to take the organisation to the next level.
