In Spain, small and medium-sized enterprises (SMEs) are the backbone of the economy, making up over 99% of the country’s business fabric, according to Cepyme. Yet, despite their importance, a striking 70% of these companies do not have a Chief Financial Officer (CFO), a gap that is holding back their growth and competitiveness. This is the warning from Altera Capital, a Spanish private equity firm specializing in investments in SMEs.
A recent report by Fundación IE and NTT DATA reveals that 40% of Spanish SMEs lack any formal financial planning, and only 1% seek advice from official organizations such as chambers of commerce or business associations. This lack of financial education and structure is a major barrier to scaling up, accessing funding, and making strategic decisions.
Faustino Valdés Gallardo, Investment Director at Altera Capital, explains, “In many of the companies we support, we are the first to push for a proper financial structure and reporting system. Without clear information and a detailed understanding of business margins, you have to rely on the key executive or leading partner not to make mistakes. The problem is, these people are often overwhelmed. A CFO who can analyze and translate data into actionable business insights is essential for professionalizing management.”
Altera Capital, based in Andalusia, invests in SMEs with revenues between 1 and 60 million euros, typically through deals ranging from 1.5 to 6 million euros. Their approach goes beyond simply injecting capital. They actively participate in boards of directors, help implement best practices in finance and corporate governance, and work closely with management teams during critical moments. Their goal is to provide not just funding, but also structure, guidance, and a clear roadmap for growth or strategic sale.
“Investing for us means preparing to divest,” says Valdés Gallardo. “A well-managed and structured SME is much more attractive in the market. It’s not just about growing revenue, but about being a professional company with solid analytical reporting and a team that can steer the business based on its numbers to maximize value.”
Limited understanding of financial statements
The role of the CFO is thus seen as a true engine of transformation. The Fundación IE and NTT DATA study shows that while Spanish business owners have a reasonable grasp of general financial concepts, their understanding of financial statements and key ratios is limited. This makes the presence of a professional financial profile—whether hired internally or brought in through partners like Altera Capital—crucial for improving efficiency, securing better financing, and preparing the company for optimal growth or sale.
“Preparing an SME for sale is not the end of the road; it’s the culmination of a process of business maturity. And a good CFO is fundamental to making that journey with order, judgment, and vision. Many SMEs struggle to make the leap from an administrative manager to a true CFO, but professionalizing this role ensures a more competitive and sustainable future,” Valdés Gallardo concludes.
As Spanish SMEs look to the future, the message from Altera Capital is clear: investing in financial leadership is not just a luxury, but a necessity for long-term success.
