error
Subscriptions are not available for this site while you are logged into your current account.
close
Skip to main content
Submit RFP

      The challenge for the PE CFO

      The Private Equity CFO operates in a uniquely demanding environment, accountable for both safeguarding value and accelerating growth from acquisition through to exit. The role requires relentless focus on cash generation, rigorous financial control, and proactive risk management, all while driving the value‑creation agenda at pace.

      With multiple stakeholders and an expectation of immediate traction post‑deal, the PE CFO must deliver strategic insight, operational discipline, and commercial agility to maximise returns throughout the investment lifecycle.

      Michael Storey
      Michael Storey

      Partner

      KPMG in the UK

      Inside the office of the Private Equity CFO

      Invaluable guidance for both seasoned finance leaders and the next generation of CFOs preparing to step into private‑equity‑backed roles.

      Typical PortCo challenges and how they can be overcome

      Common Pain points

      • Manual, inconsistent, spreadsheet based accounting, people dependent processes, disparate systems, and innaccurate data.

      • Siloed planning/reporting, slow reporting cycles, and limited granularity.

      • Challenges integrating acquisitions and maintaining consistent controls.

      Value protection activities

      • Enhancing data quality, master data, and consistent KPI definitions.

      • Standardising chart of accounts, accounting policies, and core reporting processes while strengthening governance and transparency of key processes.

      • Implementing integrated EPM solutions, stronger controls, and forecasting discipline.

      Value creation activities

      • AI enabled financial reporting and automation and intelligent monitoring of complex accounting processes.

      • Cash and Margin Leakage avoidance and top line revenue recognition growth.

      • Profitability, cost‑to‑serve and AI‑enabled scenario planning & forecasting.

      Common Pain points

      • Complex group structures, entity proliferation, and multi‑jurisdictional tax challenges.

      • High transaction complexity, restructuring demands, and limited in‑house tax skills.

      • Lack of real‑time visibility into tax exposures and risk.

      Value protection activities

      • Robust tax governance framework with effective transfer pricing and compliance.

      • Strong pre‑transaction diligence, bolt‑on integration discipline, and reporting accuracy.

      • Enhanced tax process automation, documentation, and regulatory alignment.

      Value creation activities

      • Strategic optimisation of group structure, financing, and tax incentives.

      • Use of AI to drive intelligent, integrated business planning to drive Tax and Treasury optimisation.

      • Tax‑efficient exit preparation, automation, and improved data integration.

      Common Pain points

      • Poor real‑time cash visibility and inaccurate forecasting.

      • Ineffective S&OP, P2P and OTC processes, and weak controls.

      • Legacy systems, poor data quality, and fragmented processes.

      Value protection activities

      • Clear WC KPIs, strengthened forecasting governance, and spend controls.

      • Enforcing P2P governance, robust financial forecasting, and improved cash‑flow planning.

      • Implementing process ownership and structured liquidity oversight.

      Value creation activities

      • Intelligent inventory optimisation and dynamic treasury management.

      • AI‑enabled supplier‑term optimisation, procurement intelligence, and balance‑sheet monetisation.

      • AI powered real‑time cash optimisation and advanced liquidity management strategies.

      Common Pain points

      • Fragmented, poor‑quality data and inconsistent KPI definitions.

      • Multiple disparate technologies and lack of data strategy/governance.

      • Immature AI strategy and difficulty selecting use cases.

      Value protection activities

      • Robust data governance, foundational data infrastructure, and quality monitoring.

      • Standardising metrics, hierarchies, and compliance with data regulations.

      • Remediation of data issues and improved integration across systems.

      Value creation activities

      • Predictive analytics for forecasting and customer/market insight.

      • Advanced analytics for performance and operational value creation.
         
      • AI‑enabled decisioning, automation, and operational efficiency expansion.

      Common Pain points

      • Availability of reliable historical financial information, inconsistent or immature systems, auditing, accounting and reporting across entities.

      • Complex due diligence and limited transaction and integration capability.

      • Bandwidth and timetable pressure preparing for exit, meeting regulatory requirements (for IPO) and maintaining data quality.

      Value protection activities

      • Preparation of robust carve-out financials, accounting policy alignment and transaction and audit- ready reporting.

      • Pre-diligence risk assessment, data room hygiene, Board materials for appropriate transaction governance, integration playbooks, and 100 day plans.

      • Credible, investor ready financial reporting, Synergy validation, tracking, and improved and diligence-ready forecast/ KPI alignment.

      Value creation activities

      • Synergy capture, operational integration, and value‑creation acceleration.

      • Exit‑ready KPIs, credible forecasts, and compelling data storytelling.

      • Capital‑structure optimisation and pre‑exit operational uplift.

      Common Pain points

      • Talent gaps, change fatigue, and organisational strain across critical finance roles.

      •  Inconsistent service delivery models and onboarding quality across locations.

      • Challenges attracting, retaining, and developing top talent and future leaders.

      Value protection activities

      • Clear organisation structures with defined roles, standardised service‑delivery processes, and structured onboarding and training.

      • Workforce productivity initiatives including automation and process optimisation.

      • Strengthened governance around capacity, service levels, and accountability.

      Value creation activities

      • Transforming Finance into a strategic business partner through upgraded capability.

      • Targeted talent development, leadership pipelines, and succession planning.

      • Redesigning or outsourcing service delivery for scalability and efficiency.

      Developing a roadmap for success – our finance function assessment approach

      Our Finance Function Assessment can be performed at any stage of the Private Equity investment cycle and in any sector. It delivers rapid, relevant, and practical recommendations directly aligned to the portfolio companies' context, existing and desired finance maturity, and equity story. This is essential for maximising investment value during due diligence or strategising for a seamless exit.

      rate_review

      Our Approach

      The assessment consists of a systematic review of the finance department, encompassing its operations, processes, technology, and people. This approach identifies key strengths, gaps, and opportunities for that directly impact value protection or value creation through finance. The output is an aligned view of the current and desired state, and a series of bridging activities.

      auto_awesome

      Accelerating the assessment

      The urgency of PE timelines is increasingly demanding incisive insights with unprecedented speed. In response KPMG have developed an innovative, AI-powered tool that greatly accelerates the time needed to undertake the assessment.

      Critically, while AI generates pace, we maintain essential human review and validation, ensuring our teams deliver focused, deep expertise to pinpoint critical areas and maximise value precisely when it matters most in the deal lifecycle.

      bookmark_added

      Your outcomes

      1. Overall maturity rating and risk assessment across the various components of the Finance function focusing on the key areas
      2. Key financial process overviews including gap analysis and controls review
      3. A roadmap of tangible and prioritised actions by process to both protect and create value across the function
      4. Recommendation for an Organisation structure, Service delivery Model skills and capabilities

      Private Equity Office of the CFO Services

      Rapidly assess finance capability and define a practical roadmap aligned to the investment thesis, hold period and exit.

      Explore

      Support complex accounting and reporting decisions across transactions, growth and regulatory change, from entry through to exit.

      Explore

      Strengthen liquidity and release cash through data driven working capital improvements across the end to end operating cycle.

      Explore

      Design scalable, efficient finance operating models that reduce complexity and support growth, acquisitions and increased investor demands.

      Explore

      Align tax strategy to growth and transaction priorities while managing risk and protecting value throughout the hold period.

      Explore

      Shift from backward looking reporting to forward looking insight aligned to value drivers and the value creation plan.

      Explore

      Establish stable finance platforms enabling automation, AI capabilities and robust reporting.

      Explore

      Prepare finance functions for exit with robust reporting, governance and operational readiness under deal pressure.

      Explore

      Private Equity Subscription

      Sign up for Private Equity thought leadership, research, podcasts and webinars – delivered to your inbox.

      Click here to subscribe

      Our private equity insights

      Something went wrong

      Oops!! Something went wrong, please try again
      MTD

      Get in touch

      Discover why organisations across the UK trust KPMG to make the difference and how we can help you to do the same.

      Contact us