Navigating Change: How Interim Leadership is Adapting in 2024
3 Min. Read
The Story So Far . . .
Since joining ZRG three years ago to establish the Interim Solutions business in the UK and Europe, we've experienced significant growth, despite facing challenges along the way. Today, our team consists of 7 Managing Directors and 8 research/support staff covering Business Services, Retail, Leisure & Hospitality, TMT, Finance, and Strategy & Transformation.
We’ve navigated two major shifts in the interim market. First, the post-COVID M&A boom increased demand for interim CFOs, especially in Private Equity. These CFOs typically stepped in post-investment to professionalise finance functions under new ownership.
However, geopolitical events and macroeconomic changes have slowed the deal market, driven by high borrowing costs and inflated sale prices. As a result, interim work has shifted focus. Finance roles now emphasise cost-saving, while CEO and COO assignments prioritise operational turnarounds, divestments, and strategic realignment. Technology, particularly in SaaS, Healthtech, and Edtech, remains a sector of optimism, as venture capital and private equity continue to support these businesses.
2024
2024 has been a landmark year for ZRG and the UK & European Interim Solutions team. ZRG was named the 7th largest global talent advisory firm by revenue, underscoring our growth from a US-centric executive search business to a global operation spanning Executive Search, Interim, Consulting, and Embedded Recruiting. We've also successfully rebranded and harmonised our acquisitions, positioning ourselves as a strong alternative to the SHREK firms, while preserving the culture of a boutique consultancy.
The UK & European Interim Solutions team has expanded this year with the addition of Vikki Searls and Richard Lindsay, who bring 40 years of interim management experience. They complement the expertise of Mark Hewitt, Annie McGraw, and Tom Arnall.
Despite challenging market conditions, the interim market has remained resilient, with a 15% year-on-year increase in assignments, mirroring the growth seen in executive search. As we enter the critical period from mid-September to mid-December, we anticipate a boost in new assignments as clients plan for the upcoming year. This period typically sees a surge in transformation programmes, new strategy hires, and increased M&A activity, all of which require interim talent across various functions. CFO assignments and M&A accounting specialists continue to be in high demand, ensuring businesses are prepared for potential buyers.
Looking Ahead
While high interest rates have cooled the M&A market, there is cautious optimism that the Federal Reserve, ECB, and Bank of England may consider rate cuts in Q4, potentially reigniting deal activity. This would likely increase demand for interim CFOs and financial specialists in M&A, divestments, and restructuring.
We anticipate continued demand for interim CEOs, COOs, and Finance Directors as companies concentrate on operational efficiency and cost management. The technology sector, particularly Healthtech and Edtech, continues to create leadership opportunities.
Although the macroeconomic environment presents challenges, the need for transformation and agile leadership remains. We expect a busy Q4 as businesses prepare for 2024, with rising demand across key sectors.
