Becker Private Equity & Business Podcast

Episode: Inside the Rise of Fractional CFO Leadership with Howard Sutker and Scott Moran of Sutker Moran
Release Date: May 22, 2025
Host: Scott Becker

Introduction

In this episode of the Becker Private Equity & Business Podcast, host Scott Becker welcomes listeners to a milestone episode, celebrating over 7 million downloads and a top ranking on Apple’s Business News podcast chart. Becker introduces his esteemed guests, Howard Sutker and Scott Moran of Sutker Moran, a leading firm specializing in CFO services and business consulting.

Company Overview: Sutker Moran

Scott Moran kicks off by outlining Sutker Moran's mission: providing high-level financial expertise at a reduced cost. He explains the firm’s three primary service models:

1. Permanent Financial Management: Taking over and running the entire financial department for a client.
2. Interim Services: Stepping in on a temporary basis to address immediate financial leadership needs.
3. Project-Based Consulting: Offering specialized services such as mergers and acquisitions support, restructuring, or turnaround services.

Moran emphasizes their team-based approach which includes a managing director, director, and staff support, allowing flexibility and cost-effectiveness tailored to each client's unique needs. "Higher level financial acumen at less cost," he reiterates (00:51).

Howard Sutker adds to the narrative by discussing the firm’s evolution. Founded to address the lack of financial expertise in mid-market companies, Sutker Moran has grown to serve primarily Chicago-based clients with revenues between $20 million to $100 million. Sutker highlights the importance of integrating financial strategy with business goals, ensuring clients not only manage their finances efficiently but also strategize for growth and expansion (04:26).

Trends in CFO Leadership and Financial Management

Becker steers the conversation towards current industry trends, particularly the scarcity of qualified accountants and the impact of artificial intelligence on financial roles.

Howard Sutker points out the diminishing supply of traditional accountants, with many pursuing careers in private equity or specialized valuations, leading to a shortage of skilled CFOs. He notes, "The pool of true accountants is smaller," and emphasizes the rise of automation in handling clerical tasks, allowing CFOs to focus on more strategic, value-added activities (07:06).

Scott Moran echoes these sentiments, adding insights about the fractional leadership model. He discusses how AI and automation are transforming financial management, making it more efficient. Moran also touches on macroeconomic factors like tariffs affecting costs and inventory management. He underscores the growing demand for fractional CFOs as companies seek expert financial leadership without the full-time cost commitment. "The trend in the fractional leadership space...is something that we're really paying close attention to," he states (08:41).

Client Engagements and Case Studies

Becker requests examples of how Sutker Moran impacts their clients. Scott Moran shares specific client scenarios where Sutker Moran intervened to separate the combined roles of CFO and Controller—a common issue in mid-market companies. He describes a successful engagement where the firm not only took over financial management but also strategically aligned financial operations with the company's growth objectives. "A lot of value gets added in the quick cleanup and professionalization of the financial department," Moran explains (12:00).

These engagements typically involve:

• Onboarding Processes: Rapid integration into the client's financial systems.
• Role Clarification: Distinguishing between CFO and Controller responsibilities.
• Strategic Financial Planning: Linking financial strategies to business growth plans.

This approach allows clients to transition smoothly from operational management to strategic expansion, fostering sustainability and profitability (14:37).

Growth and Future Focus

When discussing the future, Howard Sutker expresses excitement about the firm's scalable growth and the successful integration of new team members into their established processes. With a growing team of 25 professionals, Sutker Moran is well-positioned to meet increasing demand while maintaining high service standards. He remarks, "The ability to integrate people...really excites us," highlighting the firm’s readiness to expand its client base while preserving quality (15:58).

Scott Moran adds that their established processes and strong team dynamics allow Sutker Moran to efficiently respond to market demands. He emphasizes their confidence in the firm's ability to continue providing exceptional CFO services, noting that they are prepared to handle the evolving needs of their clients without needing to overhaul their existing systems. "We feel very well positioned for the demand of the marketplace," Moran states (16:16).

Leadership Advice

Becker seeks advice from his guests for founders and emerging leaders. Howard Sutker advocates for consistency and reliability, stressing the importance of doing what you say. "Do what you say," he advises, emphasizing that leaders must be dependable to ensure their teams feel secure and supported (17:35).

Scott Moran complements this by highlighting the importance of active listening and decisive leadership. He believes successful leaders should gather input and facts but ultimately make confident decisions. Moran adds, "Showcasing your passion...can be really successful when you're passionate about the work that you're doing," reinforcing the need for leaders to inspire and motivate their teams through enthusiasm and clear direction (18:34).

Conclusion

The episode concludes with Becker thanking Howard Sutker and Scott Moran for their insightful contributions. He acknowledges their success in building Sutker Moran and assisting clients with their financial and consulting needs, highlighting their role in the evolving landscape of CFO services.

Notable Quotes:

• Scott Moran (00:51): "Higher level financial acumen at less cost."
• Howard Sutker (07:06): "The pool of true accountants is smaller."
• Scott Moran (08:41): "The trend in the fractional leadership space...is something that we're really paying close attention to."
• Scott Moran (12:00): "A lot of value gets added in the quick cleanup and professionalization of the financial department."
• Howard Sutker (15:58): "The ability to integrate people...really excites us."
• Scott Moran (16:16): "We feel very well positioned for the demand of the marketplace."
• Howard Sutker (17:35): "Do what you say."
• Scott Moran (18:34): "Showcasing your passion...can be really successful when you're passionate about the work that you're doing."

This episode provides a comprehensive look into the rising trend of fractional CFO leadership, the challenges faced by mid-market companies in securing financial expertise, and the strategic solutions offered by Sutker Moran. Listeners gain valuable insights into effective financial management, leadership, and the evolving role of CFOs in today’s business environment.