The ink has barely dried on the deal, and already, the operating and reporting expectations have shifted. Many finance teams play defense during this transition to private equity ownership; they wait passively for directives from their new owner. That is a critical mistake.

As Adedolamu Shogelola, Founder of Dolash Advisory Partners, explains in his articles on the 90 days before and 90 days after a PE deal closes, most finance leaders don’t survive 18 months post-close. Those who show up unprepared for what PE ownership actually demands have already lost the relationship with their new owner before they’ve ever had the chance to win it.

Establishing direct dialogue early helps you align your plan, processes and team with the PE firm’s expectations. Plus, it signals to your new owner that you understand the value creation mindset.

We asked the Association for Financial Professionals community of practitioners what every portfolio company finance team should ask its new PE owner. Below are questions they recommend.

Investment Thesis & Exit Strategy

These questions focus on the PE firm’s “why” and “when,” because they align the finance team's long-term goals with the eventual exit of the portfolio company.

• What is the investment thesis for our company, which metrics define success and what exit options are being considered? – Aaron Wilkins, Entrepreneur, CEO & CFO
• What is the target holding period? – Aaron Wilkins
• What does the exit model need from finance to stay current? – Jason Brisbane, CEO, FinHelm
• What financial line items play the most significant role in the exit strategy? (Net income, EBITDA, operating cash flow, etc.) – Marcus Gadson, AVP of Capital Management, Ascension
• Beyond EBITDA, what are the specific operational milestones or quality of business metrics or KPIs that will maximize our valuation multiple at exit? – Rosemary Linden, President, Momentum CFO

Performance Levers & Value Creation

These questions examine the specific drivers of growth and the immediate priorities for the finance department in the first year.

• What are the three to five value creation metrics you will actually judge us on over the next 12–24 months? Which drive valuation multiples? – Barry Huisman, Chief Financial Officer, OQ RPI and Polymers
• Which is the highest priority: growth, EBITDA, cash or exit readiness? – AFP FP&A Advisory Council Member
• What does success look like for us at 90 days and one year to ensure we are building the right momentum toward that exit? What is required from finance? – Rosemary Linden
• In what respects is short-term cash flow maximization potentially detracting from long-term value creation? – Jeff Zielinski, CFO, Buy&Ship
• What is the investment appetite and rules to follow? What is the expected return (i.e., IRR) on the projects? – Raymond Cheung, Vice President, Corporate Finance and Strategy, SML Group Limited
• How do our debt covenants impact our debt capacity and ability to execute additional financial transactions? – Marcus Gadson
• Where do you see the biggest operational or financial risks in our business right now? – Anna Tiomina, Founder, Blend2Balance
• How are you measuring customer satisfaction accurately? – Jeff Zielinski

Reporting, Accuracy & Communication

These questions address the "how" of daily operations: expectations for data quality and forecasting, as well as the relationship between the CFO and PE partner.

• How accurate are forecasts expected to be? – Larry Maisel, President, DecisionVu Group
• When it comes to forecasts, do you want the range or just the number? – Jason Brisbane
• In the first 180 days, do you want us optimizing for speed or precision, and where are you comfortable with tradeoffs? – Nick Araco JR, CEO, CFO Alliance
• When performance deviates from plan, do you prefer faster warning, better accuracy or immediate action? – AFP FP&A Advisory Council Member
• How do you want to receive bad news, and how fast? – Brent Berger, Chief Financial Officer, NXT Ascent
• What decisions will you actually make from my reporting? – Jason Brisbane
• Where and when do you want finance and FP&A to reach maturity: reporting, forecasting, cash control or transaction readiness? – Barry Huisman
• Where does my forecast end and your operating model begin? – Jason Brisbane
• What have you seen finance teams in your other portfolio companies get wrong in the first 6–12 months? – Nick Araco JR

Governance, AI & Operational Support

These questions look at the boundaries of management authority, use of emerging technology and how the company interacts with the broader PE portfolio.

• Beyond capital, where will you actively help, and where will you stay out? – AFP FP&A Advisory Council Member
• What decisions do you want finance to escalate to you early, and what decisions do you want management to take without you? – Barry Huisman
• What initiative timelines shift when you drop a new high priority on us? – Benjamin Lehrer, CEO, First Water Finance
• When and where do I have leeway to engage outside resources to add capabilities/bandwidth on top of the lean team, and what are my thresholds (if any) for non-recurring EBITDA add-backs? – Benjamin Lehrer
• Are there opportunities to both learn from and contribute to your (the PE's) broader portfolio? (CFO councils, benchmarking, shared tech contracts, etc.) – Nate Saperia, Founder, Saperia Consulting
• What are your expectations around governance and AI tools? – Larry Maisel
• For AI implementation, what divisions/processes are ahead, and what are behind? – Jeff Zielinski
• What is the synergy and expectation on the portfolio company’s investment? – Raymond Cheung