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A Focus on Leadership

Updated 15 December 2025

PE is heading into 2026 with more activity but not more forgiveness. The market is rewarding preparation, not patience. Leadership expectations are tightening across CEO, CFO, and CHRO roles.
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Scott EnglerAveran · 2025-12-15

PE is heading into 2026 with more deal activity but significantly less forgiveness. The market is rewarding preparation, and punishing the assumption that good strategy compensates for weak leadership execution.

The main themes

2026 Operating Playbook (PitchBook)

Add-on strategies dominant; AI adoption separating leaders from laggards; execution velocity and organizational alignment are the primary differentiators between top and bottom performers.

Dealmaking Is Moving Again (Goldman Sachs/Bloomberg)

CFO Denis Coleman: "It's fair to say it's now happening." Pipelines reopening. This is a structural shift, not a cyclical bounce. The companies that are ready will move, and the others will watch.

The Great M&A Rebound (Bain)

Buyers leaning toward predictable cash flows, clear strategic fit, and manageable integration complexity. Integration planning is now gating deal valuation, not just post-close execution.

Human Due Diligence Accelerating

Longer hold periods magnify leadership mistakes exponentially. Sponsors formalizing assessment of decision velocity, role clarity, CEO-CFO alignment, and organizational change absorption capacity.

'Nothing Is Fundamentally Broken' (Bain)

The system isn't broken, it's operating under tighter constraints. Growth won't mask weak execution anymore. Winners stay pragmatic and control what they can control.

Scott's TakeThe companies that will exit cleanly in 2026 and 2027 are the ones that used the slow market to get the leadership right. The CEO who can execute consistently. The CFO who can tell the financial story under scrutiny. The operating cadence that doesn't break under pressure. That's what buyers are paying for now.
LeadershipCEOCFO2026 Outlook

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Questions we get asked

What leadership capabilities matter most in a PE-backed company?

PE-backed companies need leaders who can operate with high accountability, translate strategy into execution cadence, communicate credibly with sponsors and boards. Adapt through multiple ownership priorities across a 3 to 5 year hold period. Technical competence is necessary but not sufficient. The leaders who create value in PE environments are characterized by intellectual honesty, operational discipline, and the ability to build teams that perform without constant direction.

How do you assess whether a leadership team is right for the next stage of a PE investment?

Leadership fit is assessed against two dimensions: effectiveness (how well the leader currently performs) and criticality (how important the role is to the investment thesis). A leader who is effective in a stable environment may not be critical enough to the value creation agenda to justify the seat at scale. Sync-Align's 8-pillar OBHA framework scores both dimensions across the full leadership architecture.