New private equity portfolio companies have a problem.

When an owner-operated business becomes part of a portfolio, many operational aspects can stay the same and ramp up slowly. Manufacturers do not immediately have to double their output, for example.

However, the hour the deal is closed, reporting changes radically.

Information needs triple overnight.

*Weekly board reports.

*Cash forecast.

*Product-level profitability analysis.

*Pricing strategy.

These added responsibilities fall on whoever is in the finance function, or closest to it – it could be the controller or the receptionist who’s handled AR for the past six years.

There’s a struggle to find a new controller, but the portco needs vision and someone who can talk at the board level.

There’s a push to find a CFO, who ends up bookkeeping instead of strategy.