"At the same time, portfolio company CFOs face growing pressure from PE sponsors to be "exit-ready" and to ensure their companies have AI-enabled finance capabilities. Nearly all (97%) sponsors surveyed expect CFOs to maintain an "always exit-ready" posture, but only 20% of CFOs say they operate this way in reality. Most (61%) shift into exit mode only when a sale window appears-a compressed sprint that sponsors say can reduce valuation by one to three turns of the exit multiple."
"Sponsors define exit readiness holistically: active value-creation levers, integrated systems, and credible equity stories. The CFOs surveyed, however, tend to focus on tactical tasks, such as diligence packs, audit-ready financials. Only 32% include value creation in their definition. More than 80% of sponsors want exit prep to begin 12-24 months before a sale, yet half of CFOs begin just three to six months out."
Private equity firms are increasing investments while prioritizing resilient, long-term opportunities in technology, health care, and energy. Portfolio company CFOs face growing pressure to be exit-ready and to implement AI-enabled finance capabilities. Sponsors expect an always exit-ready posture (97%), yet only 20% of CFOs report doing so; 61% only shift into exit mode when a sale window appears, which can reduce valuation by one to three turns. Sponsors view exit readiness holistically — value-creation levers, integrated systems, and credible equity stories — but only 32% of CFOs include value creation. Most sponsors want prep 12–24 months before sale, while half of CFOs begin three to six months out, linking compressed prep to lower multiples and post-sale adjustments.
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