Finance Insights

Preparing and Planning FP&A Support for a Successful Private Equity Exit

Deepak Hooda Private Equity Senior Finance Director

In the high-stakes world of private equity (PE) exits, you, as a CFO or FP&A leader, are expected to play a critical role. Beyond accurate reporting and budget forecasts, you must drive value creation, influence internal stakeholders, and withstand rigorous buyer scrutiny. Your FP&A function can be the difference between a smooth, high-value transaction and a painful, drawn-out exit process.

This article walks you through the key pillars of FP&A preparedness, actionable strategies for readiness, and what you should be thinking about as you navigate a PE exit.

Understanding the Business Story: The Foundation of FP&A’s Role

Your success starts with a compelling business narrative. Develop a clear understanding of your business’s evolution, current position, and 3–to 5–year trajectory. Be ready to articulate value creation, resilience, and growth drivers.

Strategic buyers will look for collaboration and expansion potential. Financial buyers will want to optimise operations for a profitable exit. You must tailor the story to each buyer's lens, clearly showing how your business solves a market need or generates attractive returns.

How Should FP&A Build Influence from Within?

A strong internal reputation can dramatically smooth the exit process. FP&A must be seen as a strategic partner, not just a reporting function. Stakeholder feedback should be used to measure influence. Weak internal relationships can create data friction, slow diligence, and even delay the deal. To prevent this, as a leader you should proactively cultivate strong working relationships with all functions, ensuring the team is trusted, involved early, and ready to deliver when the deal process intensifies.

Technical Competency and Credibility

Buyers demand financial transparency. You must be able to demonstrate technical fluency in relevant accounting standards (IFRS, UK GAAP, US GAAP), particularly around revenue streams like subscriptions, licenses, and pass-throughs. Your team must show how internal reports reconcile with audited financials and maintain a clean trail to support quality of earnings (QoE) analyses. Strong technical competency reassures buyers and minimises last minute surprises.

Forecasting with Precision

In the months leading to a PE exit, financial accuracy becomes non-negotiable. As an FP&A leader, you must adopt tighter financial cycles, often shifting from quarterly to monthly forecasts to maintain up-to-date performance insights. Consistently hitting (or explaining) forecasts builds buyer confidence. Rapid turnaround of flash reports and bridges between actuals and forecasts are critical. Buyers value predictability and it is up to you to deliver it.

Why Does Systems Maturity Matter in a PE Exit?

Manual, Excel-heavy processes may have worked historically, but they raise red flags for potential buyers. Mature FP&A systems provide transparency, efficiency, and enable robust scenario modelling. Key metrics like MRR, ARR, churn rates, and CAC (Customer Acquisition Cost) should be quickly and reliably available. You must consider investment in scalable tools pre-exit, which can pay dividends in both buyer confidence and deal speed.

Mastering the Customer and Cost Base

Buyers will scrutinise customer data, onboarding timelines, revenue mix, churn, and recurring vs. non-recurring income. As a leader, you must be able to link these insights to the broader business story. Additionally, clarity around operating costs and staff expenses (e.g., hiring due to product expansion) builds credibility. Every line item should support the investment thesis and the narrative being sold to the buyer.

Structuring You & the FP&A Team for Success

FP&A readiness hinges on team structure and mindset. You must avoid over-reliance on a single person and ensure cross-training. You should designate a liaison to manage advisor interactions and due diligence flow. The exit process is a major opportunity for professional development for you and your team. Teams that embrace it as a learning experience will be more motivated, resilient, and effective.

Governance, Processes, and Controls

Establishing strong internal controls is critical. This includes revenue recognition policies, vendor and headcount approvals, and cost control procedures. Maintaining a live risk & opportunities tracker and up-to-date investor materials ensures the team is always exit ready. Buyers expect discipline, and your governance must prove it.

Aligning Team Incentives

A successful exit requires full team alignment. You must ensure that financial incentives are tied to valuation outcomes, along with non-financial rewards such as promotions and public recognition, as these will drive performance. Transparent incentive structures set before the exit process begins can sustain motivation through what is often an intense, high-pressure period. Importantly, PE sponsors often fund these bonuses, ensuring alignment on all sides.

Key Questions You as a FP&A Leader Should Be Asking (FAQ)

Q1: What internal improvements (systems, talent, process) could deliver the greatest impact before an exit?

A: Focus on automation, scalable tools, and cross-functional training.

Q2: Where are we most exposed to buyer diligence and how can we mitigate these risks?

A: Identify data gaps and control weaknesses early. Address them proactively.

Q3: How can we craft a financial story that defends or enhances valuation?

A: Back it with robust data, clear KPIs, and evidence of growth drivers.

Q4: Are our team and tools ready to operate in real-time during diligence?

A: Test your processes under pressure—simulate diligence sprints.

Q5: How do we maintain deal momentum and team morale?

A: Communicate openly, align incentives, and celebrate milestones.

What the Future Holds for your FP&A function

Over the next 3–5 years, your FP&A team must evolve into a true business partner, moving far beyond reporting. Key focus areas will include:

Driving systems maturity and seamless data integration
Taking a forward-looking, business-centric mindset
Embedding risk assessment into everyday planning
Proactively identifying underperformance and proposing solutions

Today, many FP&A teams — including yours — need more support from senior leadership and empowerment to influence major decisions, not just report on them. With this backing, you can actively shape strategy, not just measure it.

For newcomers, foundational qualifications (ACA, ACCA, CPA, or CIMA) remain vital. Just as important are soft skills like resilience, business acumen, and a growth mindset. Your most valuable team members will be those who merge technical expertise with strategic insight.

Conclusion

You, as a FP&A leader, have a pivotal role to play in any private equity exit. From building a compelling business story and strengthening internal influence to ensuring systems maturity and aligning incentives, you and your finance team must prepare thoroughly and strategically. A successful exit rewards everyone involved, but it starts with a prepared, empowered, and forward-thinking FP&A function. Preparation should start at least two years before exit.

About the Author

Deepak Hooda is a senior finance executive with 20+ years of experience in private equity-backed B2B sectors. He has led multiple exits, built high-performing FP&A and Commercial Finance functions, and driven financial transformation across SaaS, tech, professional services, and infrastructure businesses. A qualified ACA, ACCA, and MBA, Deepak brings deep expertise in commercial finance, strategic planning, and investor readiness, making him a trusted voice on FP&A’s role in value creation.

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