Private equity (PE) firms are rapidly acquiring businesses across industries, from accounting to real estate, forcing chief financial officers (CFOs) to adapt to complex leadership dynamics. With at least 90 PE-related transactions in accounting firms since 2020, including 52 in 2025 alone, CPA Trendlines Research projects over half of the top 30 firms may have PE ownership by year’s end. This trend extends beyond accounting, with PE firms owning roughly 10% of U.S. apartment stock, according to the Private Equity Stakeholder Project.
CFOs navigating PE ownership face tension between long-term business goals and PE’s focus on quick returns. Kenneth Merritt of Merritt Advisory Group emphasizes building trust with new owners to manage differing priorities. “CFOs need to be relationship savvy,” he says, noting their role in crafting compelling financial narratives to align stakeholders.
Karen Livingston of Ascender CFO advocates maintaining GAAP integrity and clear KPIs while adopting a “yes, if” approach to balance fiduciary duties with sponsor expectations.
PE sponsors value strategic aggression over compliance, says Tony Ciotti, CFO of Riveron, a firm that switched PE hands in 2023. “Surprises are bad,” he warns, stressing transparency and delivering on promises.
Nick Araco Jr. of CFO Alliance adds that CFOs who merely follow orders risk losing credibility, urging them to shape financial narratives proactively.
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The PE model itself is evolving, with longer hold periods—now averaging 5.8 years, per Private Equity Info—driven by higher interest rates and high acquisition prices from 2020-2022. Steven Kaplan of the University of Chicago notes this reflects sellers holding out for better valuations. Despite these shifts, PE’s capital influx continues, fueled by years of fundraising and fewer public companies, making acquisitions an appealing exit for founders.
For CFOs, the core mission remains unchanged, whether under PE, startups, or public firms. As Ciotti puts it, “Finance’s mandate is unwavering.” Yet, with PE’s rising demands, finance leaders must leverage new resources while meeting heightened expectations for clear returns, balancing trust, transparency, and strategic foresight.
