The CFO'S Perspective

Why Would a Banker Recommend Working with a CFO?

As a business owner, you may find yourself in a conversation with your banking relationship manager who will suggest you talk to a Consulting CFO or introduce you to one of our partners at CFO Selections. You likely already know that a relationship manager sees themself as an advisory partner to your business and, therefore, wants you to succeed. However, it might not always be clear what they are looking for in working with a consulting CFO or why they are sending you in our direction.

Topics: Financial Process Assessment Banking

The Fallout from Silicon Valley Bank: Evaluating the Implications for CFOs

The collapse of Silicon Valley Bank (SVB) was a sudden jolt to the banking system. SVB was a leading financial institution founded in 1983 that catered to the tech industry. This unexpected development has had far-reaching consequences, particularly regarding risk evaluation for Chief Financial Officers (CFOs) tasked with assessing and mitigating potential risks within their organizations.

I am pleased to note that First Citizens Bank (Nasdaq: FCNCA) announced on March 27, 2023, that it entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) to purchase all of the assets and liabilities of Silicon Valley Bridge Bank, N.A. The transaction is structured as a whole bank purchase and assumption agreement with loss share coverage. Silicon Valley Bank is now a division of First Citizens Bank.

While the acquisition of SVB by First Citizens is a successful one, there are lessons to be learned from the original event. In this article, I will explore the fallout, identify the emerging risks, and discuss what I think it means for CFOs as they navigate an increasingly complex risk landscape.

Topics: Risk Management Banking Bankruptcy

How and When to Communicate with Your Busy Business Bankers

Government-mandated closures. Supply chain disruptions. Customer nervousness. Public-safety protocols. Employee fear. PPP forgiveness. Union pressures. A national coin shortage. Enough already!

It’s all most businesses can do to survive these days, rather than thrive. In the midst of all of these challenges, there are relationships critical to our clients' businesses' short-term and long-term health.

One that keeps coming up, but isn’t addressed very often, is the relationship between business owners and their bankers. But how do you collaborate with your bankers during times of crisis and stress? How do you make this critical relationship work to your benefit over the long term?

Topics: Financing Banking