Home

Accordion Survey Reveals 72% of Sponsors Say CFOs Fall Short on Exit Readiness; Misalignment Risks Up to 3 Turns of Valuation

via Business Wire

New report shows that as exit windows reopen, sponsor–CFO misalignment on readiness strategy threatens to leave value on the table.

Accordion, an AI and data-powered financial consulting firm focused on private equity, today released Exit Readiness in Private Equity, the latest report in its ongoing series The State of the PE Sponsor & CFO Relationship. The survey reveals a striking misalignment between private equity sponsors and portfolio company CFOs on what it means, and takes, to be “exit ready.”

The disconnect is costing value: while 97% of sponsors expect CFOs to maintain an “always exit-ready” posture, only 20% of CFOs say they operate that way. Most (61%) shift into exit mode only when a sale window appears, a compressed sprint that sponsors say can reduce valuation by 1–3 turns of exit multiple.

“Exit readiness isn’t a checklist to complete in the eleventh hour. It’s a continuous discipline,” said Nick Leopard, CEO of Accordion. “Sponsors are training for a marathon, but too many CFOs are preparing for a sprint. That gap puts real value at risk—especially now, as market conditions begin to shift. With the Fed’s recent rate cut, a resurgence in dry powder, and a potential multi-year exit cycle ahead, those who treat readiness as a last-minute exercise risk missing the moment. The firms that win will be those who’ve embedded exit readiness into their operating model long before the banker’s call.”

Key Findings from the 2025 Study

  • Timing Clash:
    • 81% of sponsors want exit prep to start 12–24 months before a sale, yet 54% of CFOs begin just 3–6 months out.
    • 71% of sponsors say compressed prep correlates with lower deal multiples, and 39% cite rushed exits as a cause of post-sale adjustments.
  • Definition Divide:
    • Sponsors define readiness holistically: 86% cite active value creation levers, 79% integrated systems, and 73% credible equity stories as markers of readiness.
    • CFOs, however, prioritize tactical tasks: 64% list diligence packs, 58% audit-ready financials, and only 32% include value creation in their definition.
  • Performance Gap:
    • 72% of sponsors say CFOs fall short on exit readiness, citing weak data (67%), limited exit experience (59%), under-resourced teams (46%), and insufficient scenario planning/storytelling (48%).
    • Only 9% of sponsors say their CFOs exceed expectations.
  • Structural Barriers:
    • CFOs cite bandwidth constraints (49%), fragmented systems (44%), unclear sponsor expectations (36%), and lack of prior exit experience (31%) as key challenges, each of which sponsors say contributes directly to lost valuation.
  • AI as the New Readiness Signal:
    • 85% of buyers now consider AI-enabled finance capabilities when valuing companies.
    • Sponsors report CFOs who embed AI in planning, forecasting, and reporting are 2x more likely to achieve smoother exits and higher perceived valuations.
  • Market Pause as Preparation:
    • Even amid slow M&A activity, 71% of sponsors monitor whether CFOs use downtime to optimize for exit readiness.
    • Portfolios that do are 58% more likely to achieve faster diligence cycles and stronger valuations when exits resume.
  • Longer Holds, Higher Bar:
    • With hold periods now averaging 6.7 years, 82% of sponsors say the extended window raises expectations for CFO-led transformation, yet only 38% of CFOs say they adapt their approach accordingly.

What “Best-in-Class” CFOs Do Differently

High-performing CFOs start exit prep 18+ months in advance, are 4x more likely to have prior exit experience, and 2.5x more likely to proactively align with sponsors on the definition of readiness. They treat exit readiness as a state, not a stage, embedding it into the operating model through continuous value creation, clean data, and AI-enabled decision-making.

“This survey makes clear that being ‘exit ready’ can no longer be episodic,” said Pamela Stern, Managing Director and Head of Commercial Excellence, Accordion. “CFOs need a playbook for what we call ‘always-on readiness’, a framework that embeds exit discipline into day-to-day operations, aligns sponsors and finance teams around shared definitions of value creation, and ensures no opportunity for optimization is left on the table. That’s the next evolution of the sponsor–CFO relationship.”

The State of the PE Sponsor & CFO Relationship survey was conducted by Accordion in partnership with Wakefield Research in September 2025. It polled 200 senior executives at private equity sponsors and 200 CFOs at PE-backed companies with annual revenues exceeding $50 million.

About Accordion

Accordion sits at the heart of private equity—where sponsors and CFOs meet. Through financial consulting rooted in data, technology, and AI, Accordion helps clients drive value across the investment lifecycle, including foundational accounting, FP&A enhancement, CFO performance, transaction support, and turnaround and restructuring. Accordion is headquartered in New York with ten offices worldwide.

Contacts