Investor confidence isn’t a nice-to-have in PE backed companies, it’s a prerequisite for access, repricing, and exit optionality. CFOs in this setting face a daunting obligation: deliver precise forecasts, support dynamic execution, and provide credible transparency to sponsors and boards. But many fall short—not for lack of intention, but because their FP&A model is built for the past, not the future.
How Legacy FP&A Practices Erode Credibility
Consider these industry data points:
- 61% of FP&A professionals cited unreliable data as the top barrier to leveraging technology, and 96% still use spreadsheets daily for planning. 2025 AFP FP&A Benchmarking Survey
- 99% of business leaders believe AI adds value, but 75% feel their organizations lack the skills to use it effectively. Workday’s 2025 Financial Planning Trends report
- Nearly 65% of CFOs cited redesigning FP&A as their top priority for enabling faster, more confident decision-making across the enterprise. Bain’s 2024 Private Equity Midyear Report
These metrics tell a consistent story: too many CFOs are drowning in data challenges, manual processes, and technological disconnects. Not because they don’t know what to do, but because their foundation isn’t strong enough to support investor-grade planning.
Use Planning & Analytics to Restore Trust
Today’s CFO doesn’t just produce numbers; they build trust. Here’s how more strategic planning and analytics can rebuild that bridge with investors:
- Scenario-based forecasting drives confidence under uncertainty.
Instead of static budgets, CFOs should present a base case plus downside and upside scenarios. That gives boards visibility into sensitivity, decision levers, and risk tolerance. - Driver-based models tie operations to outcomes.
Rather than budget line items, use key drivers (e.g., headcount, utilization rates, volume per transaction) to forecast financial performance. This links strategy to execution transparently. - Weekly business reviews with rolling plan adjustments.
Monthly or quarterly checks are too slow. A weekly cadence keeps leadership informed, surfaces variances early, and enables rapid course correction. - Executive dashboards built for narrative, not just numbers.
Investors don’t need every data point, they need the logic. Dashboards should tell the story: performance vs. plan, leading indicators, key variances, and root causes. - Embed AI / advanced analytics to sharpen insight.
Even modest use of predictive analytics improves forecast accuracy. As more CFOs adopt these tools, it becomes a baseline expectation in sponsor diligence discussions.
Why It Matters for PE-Backed Companies
For CFOs in PE portfolios, there’s no margin for error. A missed cash forecast or variance surprise can erode board trust, complicate debt revolver management, or reset sponsor confidence. Conversely, consistent, clear, data-driven reporting positions the CFO as a strategic partner, not just the gatekeeper of financials.
In many middle-market firms, CFOs are already expanding the finance function to reclaim bandwidth from reporting to value creation. We often hear from our CFO clients that the top challenge is balancing operational efficiency and strategic growth. Modern financial planning and analysis tools help them do just that.
A Path to Stability and Credibility
Investor confidence isn’t won in boardrooms. It’s built through consistent, data-driven execution. The companies that outperform in private equity portfolios are those that treat FP&A not as a reporting function but as the operating system for decision-making.
If your finance team is still relying on outdated models or fragmented data, now is the time to evolve. Our latest white paper offers a structured framework to assess and elevate your FP&A capabilities, helping CEOs and CFOs align around a single goal: delivering investor-grade performance.
Read the whitepaper to gain:
- A clear and concise framework for converting FP&A into a performance system
- A CEO- and CFO-aligned checklist to evaluate whether your FP&A is investor-ready
- A real-world case study of a portfolio company that retooled its planning for EBITDA upside
- Guidance on embedding technology, shifting to driver-based models, and operationalizing weekly reviews
Download the white paper now to see how top-performing CFOs are building smarter, faster, and more resilient planning systems.