Executive Summary
Our survey of more than 200 PortCo CFOs across the UK and Europe shows that finance functions must evolve into a scalable, insight led engine of value creation, powered by integrated data, automation and the right workforce capabilities. The findings highlight where CFOs are at risk of falling behind, what high performers are doing differently, and the practical actions leaders can take now to strengthen decision support, build investor confidence and prepare for a successful exit.
Across the survey, three themes consistently surfaced as the foundations for finance excellence:
- People and talent: building scalable, adaptable capabilities to match business growth
- AI and technology: elevating decision support through integrated data and automation
- Exit readiness: embedding value creation disciplines early to shape a compelling exit story
For each theme, we outline the key insights and recommended actions CFOs can take today to develop a finance function equipped for both immediate needs and long term value creation
1. People and talent
Key survey insights
- Workforce capabilities top the agenda. Both investors and PortCos rank skills as the number one challenge, ahead of technology and ESG. Without the right skills, even strong systems will underdeliver
- Leadership development lags. Succession pathways are often underdeveloped, creating risk exposure as companies scale
- Learning opportunities exist but are not delivered consistently. Many teams have tools but lack structured pathways to upskill at pace.
- Finance partnering is not fully strategic. Teams are integrated in operations but are not always seen as strategic partners
Value creation challenges at PortCos over the next 12 months
Lack of workforce capability scored as the highest value creation challenge over the next 12 months by both portfolio company CFOs and PE investors
What this means for CFOs
Talent is as much an investment priority as technology. Leadership gaps slow value creation and weaken investor confidence. Upskilling, succession, and role clarity are central to sustained performance.
Our recommended actions
- Invest in targeted development programmes to build capabilities that scale at pace of the growth ambition
- Plan succession early to create a resilient leadership bench at all key levels to recognise when change is needed driven by business complexity
- Tailor talent strategy to the deal lifecycle (entry, transformation, exit)
- Define high-performing traits and measure them consistently
- Focus on engagement drivers: role clarity, growth opportunities, recognition
2. AI and technology
Key survey insights:
- Systems and data remain fragmented. Traditional processes are automated;, but integrated, consistent data remains a gap, undermining reliable performance management
- Predictive analytics and AI are underused. Reporting is more digital, but too much time goes to producing numbers instead of anticipating performance and risk
- Performance management lacks alignment to strategic priorities. Reporting often lacks a strong tie to long‑term value creation goals
- Investor expectations are rising (as are Limited Partner (LP) expectations on PE firms). Stakeholders want integrated, more frequent, and forward looking reporting across financial, ESG, and operational metrics all linked to the investment thesis from early in the investment cycle
Value creation priorities at PortCos
Automation and system optimisation scored as the second highest value creation priority for PortCo CFOs
When asked to rate technology trends by their expected impact on the success of their investment strategy over the next few years, respondents ranked Business Intelligence & Analytics and GenAI (incl. ChatGPT) as having the highest impact
Ranking of expected impact of the tech-driven processes
What this means for CFOs
CFOs are expected to anticipate performance, not just report on it. Advanced analytics and automation allow Finance teams to deliver more reliable insight, improve decision support and create more time for strategic focus.
Our recommended actions
- Embed artificial intelligence (AI) into performance management to move from descriptive to predictive and prescriptive insights
- Standardise and automate data flows to create a single source of truth
- Redesign KPIs to link financial and non-financial value drivers directly to the exit strategy
- Upskill finance talent to work with AI and automation
- Engage investors with interactive, forward‑looking reporting that builds confidence
3. Exit readiness
Key survey insights
- Value creation planning is uneven. Some portfolio companies still lack a clear plan, weakening their position at exit.
- Finance and the back office are too often viewed as a ‘cost centre’ in value creation planning. This overlooks the important enabling role finance plays in delivering the investment thesis. When designed with well controlled, cost efficient business processes, the finance function delivers timely, actionable insights needed to empower decision making,
- Finance process maturity varies. Close and consolidation are generally efficient, but performance management and people capabilities lag, as often evidenced in due diligence.
- Leadership development is under‑prioritised. Weak succession planning is a red flag for buyers.
- Strategy alignment is inconsistent. Few respondents view themselves as top performers on balanced, forward‑looking scorecards supported by trusted data.
Finance team capabilities & development is identified as the #1 barrier to value-creation & growth
- Main estimated root causes: limited resources, capability gaps, inefficient operating models
- Capability building and team development seen by PE as a critical lever for unlocking additional performance
30% of surveyed PE think PortCo's Finance team could be a better Business Partner and challange more the business
The role of the CFO is…
% of respondents among surveyed PEs by category
63%
Business Challenger, Challenger, Visionary
37%
Goal keeper, Administrator
What this means for CFOs
CFOs need to evidence resilience, scalability and a credible value creation story, not just clean financials. Buyers will test forecasting accuracy, working capital discipline and integration value/economies of scale delivery, and will assess the leadership strength to deliver against strategy linked, forward looking KPIs to judge sustainability beyond the current cycle.
Our recommended actions
- Define and execute a clear value creation plan that shows how value was created and will continue under new ownership
- Where possible; standardise processes, automate reporting and ensure consistent, transparent data and invest in scalable finance platforms and reporting (where needed) early in the investment cycle
- Prioritise leadership development and succession to build a strong bench for the ownership cycle
- Integrate operational ESG and other non‑financial metrics to align with investor expectations and evolving regulation
In closing
The top opportunities identified by portfolio companies for the year ahead include optimising and standardising processes, integrating IT infrastructure, standardising management and external reporting practices and improving data accuracy. However, technology alone is not enough. The workforce must have the capability to translate these opportunities into tangible progress against investor expectations.
Building finance capability early strengthens the function’s ability to partner effectively with investors, unlock performance while preparing for a successful exit.
Finance function opportunities over the next 12 months
How PwC can support
We can help CFOs take control where it matters, strengthen strategic decision making and unlock value through finance excellence that is appropriate for the size, complexity and investment thesis ambition. Creating value and sustained growth is challenging, but the right support will help Finance teams.
Our team brings:
- Expertise in finance transformation, integration and exit readiness.
- Tools and accelerators that support value creation and change through finance excellence.
- Deep understanding and experience with private equity clients and portfolio companies.
- A pragmatic, hands on approach with proven ability to deliver insights quickly.
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