Matt Posta
Founder & CEO, Emerytus Advisors
John Scott
Senior Advisor, Strategy and Growth
Strategic Talent and Cost Crisis Facing Middle Market Firms
Middle‑market and private equity‑backed companies—those generating between $100M and $500M in revenue—are confronting a structural leadership crisis with two distinct, compounding pressures: a shrinking talent supply and the rising cost of securing experienced financial leadership.
The Shrinking Talent Supply of CFOs and Accounting Professionals
The leadership gap is accelerating across both executive and senior accounting functions. A recent JM Search survey of over 300 CFOs found that turnover rates hover around 22% annually, with average CFO tenure just over three years¹. This volatility coincides with a broader contraction in the accounting profession. U.S. accounting and audit headcount has fallen by approximately 17%, or 340,000 professionals, since 2019².
The pipeline of future finance leaders is equally strained. Nearly 75% of CPAs are nearing retirement age³, while undergraduate accounting enrollments have declined by nearly 20%, and graduate completions show similar erosion⁴. First-time CPA exam candidates have dropped by approximately 33% since 2016, reaching the lowest level in nearly two decades⁵.
To manage these shortages, many firms are turning to offshore talent pools, notably in India, while regulatory bodies attempt to modernize licensing requirements⁶⁷. Despite these measures, the core supply-demand imbalance persists, particularly for seasoned professionals capable of guiding complex financial environments.
The Misaligned Cost Structure of Full-Time Hiring
Parallel to the supply challenge is the prohibitive cost of acquiring experienced finance leaders through traditional hiring models. Base compensation for middle‑market CFOs now ranges from $350K to $399K, often accompanied by 50–59% bonus targets¹. Add to this the lengthy search process—three to six months for executive recruitment—and the ramp-up time required to integrate full-time hires⁸.
Beyond cost and timing, these hires frequently fail to scale with evolving business needs. Companies find themselves overstaffed after compliance frameworks stabilize or woefully under-resourced during high-demand cycles such as transactions, integrations, or regulatory deadlines.
Fractional Leadership: Scaled for Growth
Fractional leadership offers a precise, agile solution to these twin challenges. Instead of overcommitting to permanent hires, companies can engage highly experienced CFOs, controllers, FP&A executives, or technical accounting leaders for strategic, outcome-driven engagements.
These professionals typically onboard within two to four weeks, allowing firms to rapidly strengthen leadership capacity during inflection points such as M&A transactions, audit cycles, or market expansions⁹. Unlike static hiring models, fractional engagements flex with business complexity, providing targeted expertise without fixed long-term costs.
Why CFOs Choose Fractional Leadership
For CFOs and operating partners—especially within sponsor-backed or growth-stage firms—the appeal of fractional talent lies in its ability to address critical challenges without overextending internal teams or inflating fixed expenses:
- Audit Preparation: Achieving robust audit readiness efficiently while preserving internal bandwidth.
- Transaction Support: Accessing experienced guidance for complex carve-outs, consolidations, and capital raises, or to support high-touch interactions, like fundraising efforts.
- Policy Development: Formulating and implementing accounting policies that satisfy auditor expectations and board governance requirements.
- Risk Mitigation: Leveraging proven leaders to reduce operational and financial risk exposure during periods of transition.
Fractional experts often include former Big Four practitioners, seasoned public company controllers, and FP&A leaders who bring immediate credibility and technical fluency. Their focus on outcomes—rather than assimilation—enables faster execution and minimized disruption.
The Emerytus Roundtable™: A Curated, Scalable Model
Emerytus Advisors advances the fractional leadership framework by integrating the Emerytus Roundtable™, a curated network of senior, cross-functional specialists aligned to complement fractional finance executives.
Through this model, clients gain continuous access to experts in audit readiness, internal controls, technical accounting, financial reporting, FP&A, transaction execution, and governance structures. Rather than relying on a single advisor, companies benefit from a scalable, integrated team that evolves with their needs.
For instance, a SaaS company preparing for ASC 606 revenue recognition may engage a fractional CAO, supported by Roundtable™ specialists in technical memo drafting, investor disclosures, and system integration. Within weeks, the company secures audit-ready documentation without the burden of permanent hiring.
Similarly, during a SPAC process or M&A carve-out, a fractional CFO leads the initiative while Roundtable™ experts provide seamless support for controls, FP&A modeling, ESG disclosures, and SEC filings—ensuring alignment, accountability, and strategic agility.
Strategic Advantages of a Customized, Scalable Model
The Emerytus Roundtable™ delivers targeted, high-touch leadership and technical depth while preserving fiscal discipline and operational flexibility:
- Depth without duration: Access to a comprehensive advisory network without long-term commitments.
- Operational agility: Expertise scaled dynamically to match regulatory, transactional, or market-driven needs.
- Risk resilience: Embedded, multidisciplinary advisors anticipate challenges and mitigate disruptions.
- Capital efficiency: Outcome-driven engagements eliminate unnecessary overhead and maximize value creation.
For private equity firms, fractional leadership combined with Roundtable™ capabilities accelerates Day 100 initiatives, fortifies governance, and ensures continuity—all without inflating portfolio company cost structures.
Conclusion
Middle-market companies face an undeniable reality: the supply of experienced CFOs and senior accountants is shrinking, traditional hiring costs are escalating, and the complexity of financial oversight is increasing. The combination strains internal resources and exposes businesses to operational and compliance risks.
Fractional leadership, powered by the curated, scalable model of the Emerytus Roundtable™, offers a solution aligned to this evolving environment. Whether addressing audit readiness, transaction complexity, policy development, or governance enhancement, Emerytus delivers strategic leadership with the precision, flexibility, and capital efficiency modern businesses require.
To learn how Emerytus Advisors can strengthen your finance function through fractional leadership and the Emerytus Roundtable™, contact our team.
Endnotes
Shrinking Talent Supply of CFOs and Accounting Professionals
- JM Search CFO Survey, 2025: Average tenure ~3.1 years, turnover ~22%.
- Bureau of Labor Statistics: ~17% reduction in U.S. accounting/auditing workforce since 2019.
- AICPA: Nearly 75% of CPAs approaching retirement.
- National Center for Education Statistics: Undergraduate and graduate accounting completions down ~20%.
- NASBA, AICPA: First-time CPA exam candidates declined by ~33% since 2016.
Expensive Cost Structure of Full-Time Hiring
- Reuters, WSJ: Offshore staffing and licensing reforms to alleviate domestic CPA shortages.
- FT, WSJ: Big Four firms increase outsourcing to India to address capacity gaps.
- Heidrick & Struggles: C-suite searches average 3–6 months.
Growing Demand for Scalable Leadership During Growth & Complexity
- Consero Group, Forbes: Fractional executives ramp in 2–4 weeks, enabling strategic transitions without fixed overhead.
Emerytus Fractional Leadership Advantages
- Integrated, scalable finance leadership tailored to mid-market and private equity needs through the Emerytus Roundtable™.