Interim managers can be a valuable opportunity, and an extra financial burden. They’re available fast and bring flexibility, especially in a crisis, when there are gaps in the team or when the current management isn’t delivering.
Where they bring specialist expertise (plant closures, refinancing through private debt, sales incentive schemes), they can tackle complex challenges efficiently and improve business processes in a targeted way. They also act independently of internal politics, which helps drive change through.
One major advantage is speed. When leadership is needed at short notice, whether because of a sudden gap, an unexpected shift in the market or urgent restructuring, they can step in straight away and take responsibility.
However, interim managers often cost more than permanent executives, which can weigh on the cost base of smaller assets, particularly if the assignment runs longer than expected. Then again, hanging on to weak management, or leaving a role empty, creates even higher opportunity costs. We’ve seen it several times, and it almost always ends in problems.
One risk is dependence on the interim manager: if they leave too soon, gaps and uncertainty can follow. There’s also often little time to settle into the company culture, which can make it harder for employees to accept the measures taken.
Interim managers are particularly in demand midway through an investment’s holding period, to carry out restructurings or deliver operational improvements.
Their job is often to make tough cuts and reduce costs to get the company back on track. Once that’s done, a change often follows: a new CFO is hired to re-energise the team and secure long-term stability.
Bringing in an interim manager remains a strategic decision that needs careful thought. The key is the balance between cost, independence and integration into the business.
In the end, though, success depends on clearly defined objectives and close coordination with the existing management team. Only then will interim managers deliver lasting value rather than just short-term fixes.
Because flexible solutions matter so much, TALENTspy has set up a Corporate Finance & Interim practice with Sarah Beumer, strengthening our corporate finance expertise and complementing our established Finance and Operations practice.
