Why growth companies are a great option for ambitious finance people

I've just got off the phone from a CEO of a property management company that did an MBO earlier this year. It's a big expansion capital deal - the business was turning over £4m a year and was focused on one particular area of property management. The team saw an opportunity to buy a much larger rival, which has not only given them much bigger volumes of business (critical in a low-margin operation like property management), but has also helped them diversify their income streams with differnt types of clients and a couple of high-growth niche operations in related areas. Total raised: £8.5m, £5.5m from the bank and £3m from a regional PE player.

Great stuff, and a fantastic challenge for the finance functions of both the buying company and the acquired businesses - it's about financial discipline, growth and diversification. The guys in those teams will also get exposure to PE, which looks great on the CV.

But the big win? Well, said the CEO, one exit route being considered is an AIM flotation at the back end of 2008. But since the company has never produced consolidated accounts before - but will have to to March 2007, along with comparatives for 2006 - they're looking seriously at switching to International Financial Reporting Standards.

It's brilliant for the company. Since they've got a mountain to climb anyway (the consolidateds and the comparatives), they may as well do IFRS as UK GAAP. It'll be more or less the same workload. But it will also get them ready for the flotation should that be the exit; and if it ends up being a trade sale, how convenient for a quoted buyer if the numbers are all IFRS-ready.

It's also brilliant for the senior guys in the finance function. They get to step onto that learning curve way ahead of most other accountants. The FC will be able to say they're well versed in both UK GAAP and IFRS - which gives them a huge advantage and loads more options when it comes to their next assignment.

We've said it before: growth companies with dynamic and valu-focused management teams are the best place to learn your trade, move outside your comfort zone and super-charge your career. IFRS is just one example of how that happens.