In private equity (PE), rapid transformation is essential for portfolio company success. The finance function is central to that process.

As the key source of information for sponsors and value creation initiatives, finance plays a pivotal role in driving results.

But when manual workflows, limited data, and inefficient technology pile up, even the strongest CFOs can find themselves at a disadvantage.

How can you set your portfolio company’s finance team up for success?

By helping the finance function help itself, sponsors unlock the team’s ability to deliver more than just information, enabling the delivery of insights and empowering talented resources to focus on the issues that matter to drive results. By gaining a clear understanding of the people, processes, and technology that enable progress, you also enable the business to operate with greater efficiency and agility, providing the data-driven insights needed to support and accelerate the delivery of investment related goals and objectives.

Our Rapid Finance Function Diagnostic tool gives PE sponsors and CFOs an actionable snapshot of current performance. It also highlights where targeted investment can have the greatest impact.

Early, evidence-based intervention

Imagine being able to pinpoint the earliest signals of opportunity to strengthen your portfolio company’s finance team—well before challenges arise or performance is affected. Too often, organizations wait until warning signs escalate into full-blown crises before taking action.

By identifying critical factors across people, process, and technology, our tool spotlights what might get in the way of the finance team’s ability to deliver. Addressing potential roadblocks early sets the stage for sustainable success.

Common problems at portfolio companies

Many organizations face everyday finance challenges that, while not exciting, can slow things down and hinder value creation. By proactively addressing these common issues, businesses can streamline operations and unlock greater value.  

Many of these issues don’t show up right away. They often go unnoticed during initial diligence and onboarding, but can become major problems later, particularly when companies are focused on adopting new strategies and value creation initiatives that are core to the investment thesis.

Getting ahead is key to ensuring limited resources are used to accelerate desired results, rather than being spent on catching up and solving inefficiencies.

Case study: Streamlined operations lead to immediate ROI

A leading private equity firm engaged Deloitte to assess the finance function of one of its portfolio companies, an original equipment manufacturer. The portfolio company was experiencing significant audit delays and operational challenges.

Our rapid finance diagnostic found some big issues, like a complicated chart of accounts and weak access controls. This led to thousands of unnecessary accounts and inconsistent data from year to year. As a result, audit costs went up, extra staff were needed, and the company was spending more on work that didn’t add value.

Through our financial close and technology assessment, the company got a clear list of ways to improve across eight business areas, with 25 practical recommendations ranked by how much effort and impact they would have. This helped the team focus on the changes that would make the biggest difference.

By simplifying processes, the company reduced audit and operational costs and closed its books faster and more accurately. This led to EBITDA growth in the period following the diagnostics, increasing the company’s overall value.

Driving value creation in the first 100 days

Successful PE-backed companies drive value creation by simplifying, standardizing, and automating the most important finance processes.

The first 100 days after acquisition are fundamental to success and set the stage for long-term value creation. By targeting quick wins early, PE sponsors can unlock incremental value that extends well beyond the initial phase.

Here’s where the real impact shows up:

• Efficiency and resilience get a boost through smart automation and technology, directly contributing to cost savings and operational effectiveness.
• Data quality improves, enabling sharper insights and faster, more confident decision-making.
• Resources are freed up, allowing teams to focus on higher-value activities that accelerate growth and improve financial performance.
• Finance processes and controls become standard, integrated, and adaptable, reducing risk, supporting compliance, and laying a strong foundation for sustainable value creation and future growth.

Take the next step toward high-impact finance functions

Our Rapid Finance Function Diagnostic tool is designed to quickly surface the financial and operational risks that matter most for CFOs and PE sponsors. With a proactive approach, you can unlock the full potential of your portfolio company and drive value creation to support the investment thesis.

If you’re a PE sponsor struggling to get the right support or a CFO finding it tough to communicate the real challenges slowing you down, let’s connect. Together, we can identify the major obstacles and start clearing the way for measurable results.