Survey on CFOs in Private Equity
Deloitte and the business psychology consultancy firm FRANQ have conducted a survey focusing on CFOs in Private Equity (PE) backed companies from three different perspectives, namely PE professionals, CEOs/Chairmen and CFOs themselves.
The aim of this report is to create an insight into the value creation of the CFO in a PE-backed company. Furthermore, we want to provide a perspective on the high turnover rate and how it can be reduced – for the benefit of both companies and CFOs. The turnover rate amongst CFOs in PE-backed companies is high; in total, more than 80% are replaced during ownership. Even CFOs who have been onboarded during the PE ownership seem to be replaced frequently, thereby contributing even further to the turnover rate. To understand the high turnover rate, the survey suggests two aspects to consider: how CFOs navigate their role and what it requires working in a PE-backed company.
There are two main ways you can fall short in the role as CFO in a PE-backed company: If you fail to get the basics right or if you are unable to act as a business partner and leverage strategic insights. The survey also shows that working as a CFO in a PE-backed company entails high demands and that support is an important but often scarce resource.
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