Introduction

The world of private equity is fast-paced and high-stakes, and FP&A plays a uniquely pivotal role. From the moment a PE firm takes control of a portfolio company, things move quickly. There's typically an immediate deep dive into the company’s financial and operational health, followed by an aggressive push to set and execute both short and long-term goals. Short-term priorities often include cost discipline, operational efficiency, and liquidity management, while longer-term plays can focus on scaling through organic growth, bolt-on acquisitions, and digital transformation. 

In most companies, FP&A is focused on budgeting and reporting. In a PE-backed company, FP&A becomes a strategic engine, guiding decisions on pricing, hiring, operations, and investments, all while staying ready for an eventual exit.

Over the past four years, I have led FP&A at a PE-backed company and seen firsthand just how challenging and rewarding this role can be. Through it all, three themes consistently stood out:

●    Balancing growth and profitability
●    Earning a seat at the table as operators — not just scorekeepers
●    Staying exit-ready, even while running the business at full speed

1. Balancing the PE Equation: Scale Fast, Stay Lean

Private equity firms expect their portfolio companies to deliver strong top-line growth that translates into meaningful returns at exit. This growth can come from investment in the go-to-market engine, pricing optimisation, market expansion, new product lines, or acquisitions that drive competitive advantage. And at the centre of it all? FP&A. Every key decision, pricing changes, product launches, or evaluation of an M&A target begins with the FP&A team modelling the potential financial impact. They are the backbone of operational execution.

Private equity isn’t just about how fast you grow, but how well you grow. What makes this environment different is the relentless need to balance growth with profitability. PE firms aim for multiple expansion. They want to exit at a higher EBITDA multiple than they bought in at, which means the growth has to be aggressive and efficient. FP&A also plays a critical role here, turning boardroom strategies into actionable P&L forecasts that hold the line on margin and drive EBITDA in the right direction. For FP&A, the mandate is clear: fuel growth, protect margins, and help build a story that investors will believe in.

There is no one-size-fits-all approach to driving this balanced growth strategy. Every business has its own set of levers based on its industry and stage of growth. However, the core principles are consistent: top-line growth must be tightly integrated with cost structures. If payroll forms the majority of the delivery cost structure, this could mean staffing plans built in sync with revenue models. As growth fluctuates, the staffing models adjust to reflect the capacity needed to execute. Similarly, if go-to-market investment is fueling growth, it’s critical to track acquisition costs and ensure the team delivers strong ROI as the business scales. 

This needs to be done in lock-step with both the leadership teams supporting service delivery and people teams, like talent acquisition. Doing this well requires not just models and data, but also strategic influence within the organisation to drive action. Let’s talk about that next. 

2. Evolving from Scorekeepers to Strategic Operators

Early in a PE-backed transformation, it becomes evident that FP&A is expected not just to support the business, but to help lead it. This means the FP&A team must stay ahead of the curve, deeply understanding the levers that drive performance and monitoring them closely to spot early signs of risk. When something begins to veer off track, the first step is to flag it early, pinpointing exactly which metric is under pressure. At the same time, FP&A must quickly rework their models to reflect the deviation and assess its impact.

A good FP&A team does this continuously, with speed and agility. This is the hallmark of an FP&A team that has evolved beyond scorekeeping to active performance management. A great FP&A team goes a step further — they proactively build and present data-driven scenarios that explore how to course-correct. Which levers can be pulled? What’s salvageable? What’s not? When FP&A reaches this level, they are no longer back-office observers. They are true business operators.

That kind of influence starts with confidence in the numbers. When a team consistently nails short-term forecasts, it builds credibility — people begin to believe in the models. If the team can correctly predict what will happen next month, mainly using known data points, that means their processes are robust and their models are technically sound. Plug longer-term assumptions into those same models, and now you have directionally correct indicators of what’s going to happen 3–6 months out. Sure, forecasts get more and more abstract the further you go, but if the model is sound and the teams can deliver on the assumptions behind it, the business will likely move in the direction it’s pointing.

The ability to partner effectively across functions is just as critical as technical skill. FP&A often delivers unwelcome news — budget overruns, margin pressure, revised forecasts. Doing so with empathy, practical solutions, and composure goes a long way in earning trust. When HR leans on FP&A to guide hiring plans, sales relies on them for setting realistic quotas, service delivery teams count on them to stay on top of margin targets, and leadership turns to them for fast, data-backed decisions. That is when FP&A has truly earned its seat at the table as a trusted business partner.

3. The Exit Is Coming. Be Ready Next Quarter.

Whether a company is six months or six years away from a potential exit, PE firms are always thinking about it, and FP&A needs to be just as focused. That means driving audit-level precision in financials, building and maintaining clean, scalable financial models, and always being ready to answer diligence questions. At times, it can feel like building the plane while flying it. That is why exit preparation can’t be a last-minute scramble. It has to be built into the team’s daily operations. 

This starts with having complete command of the numbers, down to the most granular details. Diligence isn’t just about forward-looking projections; it also requires full transparency into historical actuals, with clean, reliable data to support every metric. The strongest FP&A teams build this into their monthly and quarterly routines — not as a last-minute fire drill, but as standard workflows. Once the books are closed and the next forecast is built, they take the extra step: cleaning and appending customer-level data in centralised, version-controlled databases, and updating historical KPIs. This creates a clear, defensible trail for every key metric a buyer might ask about. The most exit-ready teams know exactly which data points matter and have airtight processes to maintain them.

FP&A and Accounting step into the spotlight when the exit process kicks off. Sell-side advisors may manage the playbook, but the internal FP&A team provides the data, drives the narrative, and helps tell the company’s story to potential buyers. In a PE-backed company, staying ready for an exit isn’t a milestone — it’s a mindset that the team must fully embrace.

What makes all of the above possible? A modern FP&A tech stack and automation-driven approach.

Doing More With Less: Lean, Fast, Automated

FP&A in a PE-backed environment isn’t just about doing more; it’s about doing it faster, smarter, and with fewer resources. PE firms expect high output from lean teams, making scalable models and automated reporting systems necessary, not a luxury. That is why it is critical to assess the FP&A tech stack early. The right solution looks different for every company, depending on the complexity of the business, the volume and structure of data, the pace of reporting, and the team’s level of technical fluency.

For some companies, a cloud-based forecasting tool may be the right fit. For others, a shared data repository and Excel application layer may offer more flexibility. Excel is almost always part of the stack — but it should be used strategically for what it does best: ad hoc analysis, dynamic models that refresh from shared data sources, and highly customised reporting.

As an FP&A leader, I focus on three core principles when designing the tech stack:

●    Flexibility: No bloated, 100MB spreadsheets that bog down collaboration or break under pressure.
●    Agility: Workflows should be seamless, not dependent on passing static files back and forth.
●    Sustainability: Systems must scale with the business, not break as complexity grows.

At the end of the day, no digital tool can replace the basics: sound financial modelling, critical thinking, and strong cross-functional relationships. An FP&A team grounded in these core skill sets is positioned to succeed. But give that same team the right tools, and now they are on absolute fire. 

Conclusion

The world of private equity doesn’t wait, and neither can FP&A. The demands are high: deliver growth, protect margins, guide the business, and stay exit-ready at all times. It is a tough job, but when done right, it is also one of the most influential roles in the company.

The best FP&A teams bring more than just technical skills. They operate urgently, think like owners, and build trust across the organisation. They don’t just report on performance; they help shape it. With strong fundamentals and the right tools in place, FP&A becomes a true catalyst for value creation. 

This is the opportunity for FP&A leaders in PE-backed companies to step beyond the traditional scope of FP&A and lead the business forward — decisively, strategically, and always ready for what is next.