THE CFO SQUAD POSTS 18% Q3 GAIN, OPENS NEW OFFICE AND EXPANDS STAFF TO SUSTAIN ITS FAST-TRACK GROWTH
In the third quarter, the U.S. economy grew a record 7.4 percent, recovering two-thirds of the ground it lost during the first half of the year. That’s a remarkable track record of growth—but the CFO Squad has more than doubled that, posting a remarkably robust 18 percent gain compared to the third quarter in 2019.
The CFO Squad is a premier provider of outsourced chief financial officer and financial reporting services to both private and public companies. In July 2020, the company opened its fourth office in the Philippines, adding to its three NYC-area offices. Over the past few months, it has added five new senior accountants to better accommodate the escalating demand and to prepare for the company’s 2020 growth plans.
Clearly, the COVID epidemic did not adversely impact the CFO Squad’s revenue. If anything, it helped, according to Founder and Managing Director Joseph Himy. “Since the COVID epidemic first hit this spring, we’ve seen a big uptick in S-1 filings, SPAC (Special Purpose Acquisition Company) deals, and we’ve rolled out our new outsourced back office accounting service,” he said.
Himy pointed to pent-up demand as a driver of this recent surge in activity, as well as a sense of urgency on the part of some customers to file with the Securities and Exchange Commission before the November election. “However, the rules and preparation work needed in this new business climate have evolved, requiring unique corporate finance and accounting expertise—which fortunately is our core value,” Himy said.
The skyrocketing popularity of SPACs was another key growth factor. A SPAC is a company with no commercial operations formed to raise capital through an initial public offering (IPO), for the exclusive purpose of acquiring an existing company. For more information on SPACs, see our August blog.
2020 – the year of the SPAC?
SPACs have been around for decades, but in recent years, they have become more popular, attracting big-name underwriters and investors and raising a record amount of IPO money in 2019. As of November 17, 2020, there have been 243 SPACs organized, compared to 59 for all of 2019! This surge in activity has resulted in 192 IPOs, raising an average of $352.6 million each. It’s no wonder that CNN called 2020 “the year of the SPACs!” Fortunately, as Mr. Himy observed, “The procedural and reporting requirements of forming a SPAC are a perfect fit for our company’s financial reporting expertise.”
Full speed ahead! With a brand-new turnkey service for 2021
The CFO Squad’s mainstay services include outsourced bookkeeping and technical accounting, mergers and acquisitions, CFO consulting, IPO readiness, audit preparation, tax preparation and compliance, and SEC/financial reporting. But the CFO Squad has never made a habit of standing pat.
Next month, the company will roll out its new Accounting Back Office solution. “This will be an A-to-Z, hands-on, and highly cost-effective way to outsource all accounting and financial management responsibilities,” said Himy.
Can you benefit from the CFO Squad’s new outsourcing solution?
If you’re considering an IPO, considering a SPAC, or looking for an easier, more strategic way to manage your business’ bookkeeping, accounting and financial data, we can help.
To learn more about how we innovate, please call us today at 845-548-6678 or email jhimy@cfosquad.com.