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A CFO's role often shifts unexpectedly during mergers and acquisitions. On one hand, financial leadership is essential for combining systems and ensuring a smooth transition. But M&A can also bring disruption — raising uncertainty, second-guessing past decisions and shaking sentiment throughout the organization.
That complexity is playing out in real time as Prada moves to acquire fashion rival label Versace from its parent company Capri Holdings, whose CFO, Thomas Edwards, is exiting for a new role at Macy’s. Edwards, who was also chief operating officer at Capri, will join Macy’s in the same roles on June 22.
The timely departure of Edwards for the struggling department store stands out, as his exit underscores how M&A can be a moment for CFOs to either recommit to the mission or move on to the next challenge.
What a CFO exit means during a deal
In the past, reasons CFOs have left during an acquisition are because their post-acquisition role was unclear or they lacked confidence in the restructure. Capri's CFO departure after a high-profile deal raises questions about timing and motivation. Jack McCullough, president of the CFO Leadership Council, said that Edwards’ decision may reflect a desire for a new challenge in a familiar sector.
“I’d say it’s not common, but not exactly unprecedented, either,” McCullough said, when asked about how often he sees CFOs grow a desire to leave in the midst of an M&A deal. “I only know of one case personally, and it was a familial reason for leaving.”
When asked how such a move could affect integration, McCullough said the consequences may be more cultural than they are operational.
“The technical skills of a CFO of the acquired company can be replaced,” McCullough said. “I think the fallout might be cultural — employees are going to wonder why the CFO is leaving and what that means for them. CFOs know things about a company that nobody else knows, so when one leaves, it’s a big thing. Particularly during a deal like this, when the acquired company’s employees are nervous about whether they’ll still have a role. It also impacts investors, customers, suppliers and such.”
A strategic pivot
McCullough said that a decision to change positions during an M&A deal likely stems from a broader, long-term view of career expectations.
“[Edwards’ move] is [likely] not a numbers decision; it’s a strategic one,” McCullough said. “A CFO has to weigh [in on] more than the financials — brand reputation, leadership chemistry, future growth plans and even where they feel they can make the biggest difference.”