Driving value creation:  How aligning finance and leadership fuels agility

In today’s private equity landscape, agility isn’t optional—it’s the proven engine behind scalable growth. According to Highspring research, high-agility companies are twice as likely to report revenue growth and nearly four times as likely to achieve alignment across strategy, talent, and technology. 

But agility alone isn’t enough. The real differentiator lies in the ability to embed agility within a cohesive value creation strategy, one that is powered by the right leaders and supported by strong operational foundations. When finance leadership, finance, operations, and technology align, they create the synergy needed to drive lasting performance and sustainable growth. 

Key takeaways 

• Taking a thoughtful, stage-appropriate approach to leadership allows PE firms and portfolio companies to better align their talent strategy with their value creation goals. 

• Predictive analytics, margin analysis, and selective outsourcing position finance as a strategic driver—not just a reporting function. 

• Companies that integrate AI, nearshoring, and agile frameworks outperform peers in speed-to-market and margin resilience. 

• Embedding finance into sales planning and applying well-governed technology to targeted use cases drives smarter resource allocation, faster revenue recognition, and sustainable growth. 

As the PE industry faces more complex and uncertain market conditions, the finance function is becoming a central engine for strategic decision-making and long-term value creation. Leading portfolio companies are achieving outsized results by modernizing finance and the ways in which it partners across operations and customer-facing functions and leadership When paired with a more strategic use of data and technology, these cross-functional efforts unlock greater agility, efficiency, and scalable growth. 

This article explores how evolving finance into a more strategic function can fuel enterprise transformation. By partnering with executive talent, data leaders, and technology strategists, organizations better position themselves to surface actionable insights that drive margin expansion and long-term scalability. This cross-functional collaboration forms the foundation of the fuel for growth framework.  

Securing the right leadership for every stage 

The lifecycle of a PE investment requires leadership that evolves alongside the company’s growth and changing priorities. At the outset of an investment, significant changes often occur within the management team. For example, a CFO without prior experience in a PE-backed environment may face challenges navigating the pace and expectations of value creation. In such cases, a value creation plan might identify the need for a leader who can drive accelerated growth and align financial strategy with operational goals. 

As a portfolio company matures, its leadership needs naturally shift. A CFO who excelled at driving top-line growth may not be the ideal fit when the focus transitions to bottom-line EBITDA performance and operational efficiency. Later, as the company approaches an exit, leadership requirements often pivot again. This stage may call for a leader with specialized expertise in M&A and exit readiness. In some cases, an interim executive with deep experience in preparing businesses for sale can step in to ensure the company is well positioned, with a clear understanding of its financials and operational metrics before engaging with potential buyers. 

Navigating these transitions effectively requires a strategic approach to leadership. A holistic executive talent strategy—one that integrates both interim and permanent leadership solutions—can provide continuity and insight. Interim executives, through their hands-on contributions, often uncover critical nuances about the skills, experience, and temperament needed for a permanent hire to succeed. This approach not only reduces the risk of a misaligned hire but also ensures the incoming leader steps into a stable, well-prepared environment. 

By taking a thoughtful, stage-appropriate approach to leadership, PE firms and portfolio companies can better align their talent strategy with their value creation goals. The right leaders, at the right time, can be the difference between meeting expectations and exceeding them. 

Modernizing the finance function  

Finance departments today are evolving into strategic, high-impact functions, moving beyond their traditional role as a compliance and reporting hub. At the center of this evolution is the ability to generate forward-looking insights that drive enterprise value. 

Today’s CFOs and finance leaders are expected to enable decision-making at the pace of business. This starts with core operations and being able to quickly and effectively use transactional data from existing enterprise systems. That lays the foundation to leverage additional platforms or third-party sources to better forecast sales cycles, optimize working capital, and reduce days sales outstanding (DSO) through robust predictive analytics.  

A Wall Street Journal analysis examines how PE portfolio companies adopting these practices can improve the cash conversion cycle and free up working capital to reduce leverage and fund growth—but predicting inflows is a major challenge these companies face. While it can be easy to identify when cash leaves the company, it’s more difficult to predict inflows. That’s why companies are beginning to leverage artificial intelligence (AI) to forecast when customers may pay and which are likelier to pay late, while also creating robust customer segmentation matrices to build engagement strategies.  

Margin-level analytics are equally critical. They provide insights into customer, product, and channel profitability. Goldman Sachs’ 2024 Annual Report notes that detailed margin analysis drove a 16% year-over-year increase in net revenues, reaching $53.5 billion.  

Optimizing product and operations  

Adopting agile methodologies in product development has become a strategic imperative. Pmwares 17th State of Agile Report indicates that nearly 70% of organizations have implemented agile practices in IT and software development teams, and 48% have expanded them into engineering, product, and research and development (R&D) departments. 

Across PE, roughly 50% of funds are actively exploring AI use cases to boost operational efficiency and scale innovation—and for good reason. PE-owned companies using AI-driven marketing and supply chain systems have shown 40–50% efficiency gains by reorganizing workflows and uncovering hidden revenue streams. Highspring’s Agility Index Report adds further weight, noting that agile organizations outperform rigid ones across every key operational KPI, from conflict resolution to resource reallocation. 

To focus internal teams on strategic initiatives, many PE-backed organizations are turning to managed services or outsourcing for transactional activities. By outsourcing transactional tasks—such as AP/AR, month-end closes, or tax filings—PE-backed firms can refocus their finance teams on strategic priorities.  

For example, an aerospace and defense (A&D) portfolio company experiencing strong growth in government contracting recognized the need to increase agility and reduce finance function costs. By exploring nearshore and offshore service models, the company positioned itself for greater scalability. 

This model also empowers finance teams to concentrate on analytics that support value like pricing optimization, cost renegotiation, and post-acquisition integration—all of which contribute to stronger EBITDA margins and better exit multiples. 

Transforming sales and customer-facing roles  

Revenue-generating teams are being restructured for agility. Continued investment in client-facing roles remains essential, especially when paired with strong internal partnerships between finance, operations, and sales functions. These teams establish key KPIs like CAC payback period and L2C conversion rates, enabling smarter decision-making and streamlining sales efforts. This framework converts internal investment into measurable outcomes—all without relying on external resources.  

Companies that integrate CRM platforms with financial planning tools are especially well-positioned to act on these insights in real time. Modern PE CRMs now serve as the single source of truth across deal origination, portfolio management, and investor relations. As finance teams integrate CRM data into FP&A processes for efficiency and visibility, finance functions can model revenue pipelines directly from the CRM, shortening cycle times and improving forecasting fidelity. 

Organizational structures are shifting, too. Hybrid go-to-market (GTM) models—placing strategic account managers closer to clients while offshoring internal tasks—balance customer intimacy with cost discipline. This is agility in action: scaling impact while controlling spend. 

Strategic finance plays a pivotal role in this shift. According to Forecastio, an emerging sales performance analytics platform, companies that embed analytics into sales planning improve forecast accuracy by 25%. They’re also 10% more likely to achieve year-over-year revenue growth by embedding analytics into GTM planning. This data-driven approach ensures that sales investments are not only targeted but aligned with broader business objectives.  

Leveraging technology and data analytics 

Data has become the central nervous system of agile PE-backed companies. Unified data platforms establish a single source of truth, allowing teams enterprise-wide to act with greater speed and alignment. Beyond reporting, predictive models help organizations anticipate demand shifts, identify risks, and proactively adjust strategies.  

The technology is here to stay. Around 20% of large-cap PE firms now build proprietary generative AI (GenAI) and portfolio monitoring tools in-house, and more than 80% have established AI governance committees. While AI and machine learning offer enormous potential, organizations should prioritize targeted, high-impact applications that address operational challenges.  

According to AmplifAI, an emerging AI platform in the CX space, companies investing in GenAI are seeing strong returns, where each dollar spent yields an average of $3.70 in value. However, it’s critical for organizations to avoid overhyped vaporware or implementing tools that lack a strategic fit. A phased implementation strategy with proper governance and accurate monitoring can help mitigate these risks and ensure a positive impact.  

Additionally, automation remains a powerful lever for operational efficiency. According to a 2025 report by SolveXia, optimizing financial processes through automation can reduce time spent on tasks by 30–40%, enabling teams to reallocate resources toward higher-value activities. This impact underscores why automation is central to the fuel for growth framework. 

Building high performance that lasts  

In today’s environment, private equity firms must take a different approach—viewing finance and leadership as equal drivers of value creation. Finance is no longer just a back-office function; it is a strategic partner that powers growth and performance. At the same time, building a strong leadership team and aligning talent with strategy is essential to provide the right support at every stage of the investment lifecycle. When finance and leadership work in harmony with operating models, advanced technology, and cross-functional collaboration, agility is achieved and becomes a catalyst for accelerated growth, stronger margins, and sustainable business performance.  

Contact our PE experts today to learn how you can turn these levers into measurable results across your portfolio.