When a portfolio company underperforms, private equity (PE) firms don’t panic, they pivot. The success of that pivot hinges on one thing: a robust, credible, and fast-acting turnaround plan.
At International Executive Consulting LLC (IEC), we work closely with both PE operating partners and executive teams to craft and implement high-impact turnarounds. Based on decades of experience across industries from tech, manufacturing, professional services, to consumer goods and more, we’ve seen what separates a plan that gets green-lit from one that gets shelved.
This article outlines exactly what private equity partners expect from a portfolio company’s turnaround strategy. Whether you're a CEO, interim executive, or advisor, this guide offers actionable insight to build confidence, align stakeholders, and drive operational transformation.
PE partners aren't looking for sugar-coated updates. They expect a brutally honest assessment of current challenges. A credible turnaround begins with intellectual humility and evidence-backed analysis.
What they want to see:
Data-driven performance reviews: historical revenue, margin erosion, churn, customer acquisition costs, unit economics, operational bottlenecks.
Causal clarity: was the issue market-driven (external) or executional (internal)? A detailed attribution matrix helps.
Voice of the customer & team: insights from top customers, lost deals, and frontline staff add critical context.
Tip: Use a "Stoplight Analysis" to rank all core areas (sales, ops, product, finance, talent, etc.) as Green, Yellow, or Red. It’s a powerful visual tool to guide urgency and focus.
A turnaround plan is only as strong as the team executing it. PE firms want to know: Do we have the right leaders in the right seats?
What they want to see:
Clear leadership assessment: who’s staying, who’s going, and why.
Fractional or interim support: bringing in outside experts with turnaround, operational, or domain-specific experience shows commitment to results over ego.
Defined decision rights: clarity on who makes which calls. Decentralized chaos kills momentum.
Tip: When time is short and stakes are high, interim/Fractional C-levels can bring immediate traction. IEC’s fractional executives are often deployed within 10 days to stabilize operations and drive early wins.
Turnarounds succeed or fail in the first 90 days. PE partners want to see a tight, tactical roadmap that proves traction is coming, fast.
What they want to see:
Weekly KPIs tied to specific actions
“No-regrets” moves: immediate cost cuts, renegotiated vendor contracts, inventory management changes, or pricing corrections.
Revenue stabilization initiatives: key customer retention strategies, short-term pipeline optimization, and conversion improvements.
Tip: Think in “sprints,” not strategies. Quarterly plans framed in weekly or biweekly execution cycles create momentum and visibility.
No turnaround plan is credible without a solid financial backbone. PE investors are financial engineers at heart; they want to see not only the budget, but the underlying levers and logic.
What they want to see:
12-month forward model with scenario planning (base, upside, downside)
Cash burn control: where are the near-term savings and cash unlocks?
Unit economics: LTV/CAC, contribution margins, and breakeven analysis
Bridge to profitability: a phased path to sustainable EBITDA
Tip: Pair your operational plan with a dynamic financial model. Better yet, make the CFO or interim finance lead present it directly to build trust and credibility.
Commercial repositioning (If needed)
Sometimes performance drops because the market moved faster than the company. A compelling turnaround plan may require a repositioning of the commercial strategy.
What they want to see:
Refined ICP (Ideal Customer Profile): focused market segments with real, current demand.
The GTM (Go-to-Market) strategy requires adjustments for sales structures and channel distribution and marketing budget reallocation and price adjustments.
Customer concentration risk mitigation: plans to diversify key account exposure
Tip: Stopped growth makes you wonder if you solve the proper problem for your intended market. A quick resolution emerges from attacking specific targeted niche markets which have strong buying intentions.
The implementation of change initiatives typically leads to decreased employee morale levels. The company depends on its human capital for its operational success. The turnaround plan must include PE partner expectations regarding organizational realignment and renewed energy levels.
What they want to see:
The retention strategy includes both bonus payments and equity refreshes alongside essential new hire additions for top talent.
Cultural reset: clear communication cadence, rallying points, and renewed vision
Accountability mechanisms: new management rhythms, performance dashboards, and KPI ownership across teams
Tip: The transformation of company psychology becomes possible through the achievement of small symbolic victories that include shutting down toxic customers and establishing new internal recognition systems.
A successful turnaround strategy requires internal execution focus together with a communication approach for investors lenders and board members.
What they want to see:
Monthly or biweekly reporting rhythms
The CEO along with the CFO and PE operations partner maintain consistent messaging.
All strategic requests need to demonstrate their return on investment including bridge funding requests and KPI deadline extensions and re-capitalization needs.
Tip: Establish a Turnaround Dashboard containing 5–8 essential performance indicators which should be updated at every board meeting. The dashboard demonstrates control as well as transparency and momentum.
Private equity firms maintain their focus on value creation and exit possibilities even though they prioritize short-term stability for turnarounds. Show them the long game.
What they want to see:
Revised exit thesis: Has the holding period changed? Is the target buyer still the same?
Milestones for revaluation: What needs to happen to move from 5x EBITDA to 8x?
Strategic value-add initiatives: Tech enablement, IP development, accretive tuck-in acquisitions
Tip: Show the Three Horizons approach by demonstrating stabilization during months 0–3 followed by growth from months 3–12 and strategic scaling after month 12. This approach establishes connections between short-term work and long-term worth.
The ultimate goal of private equity partners is to receive a plan that demonstrates realism and execution capabilities and maintains discipline. No fluff. No theory. Just action.
What they want to see:
Prioritization: Not 50 initiatives, just 10 that matter most.
The plan includes clear assignments for team members with specific deadlines and performance targets.
Contingencies: If X doesn’t work, what’s Plan B?
Tip: Every plan should begin with a one-page executive summary. A plan should be simple enough for a PE partner to explain it to their investment committee within two minutes.
Final thoughts: turnarounds are test cases for trust
During every turnaround process two essential things need to be restored: the company’s operational success and the PE firm’s confidence in their management team. A strong plan addresses both.
International Executive Consulting provides expert interim executive placements and hands-on turnaround execution services. The company provides more than plan development because we deliver tangible results. Our experts provide immediate support for critical and transformative business needs to both portfolio CEOs facing pressure and PE operating partners seeking high-impact teams.
Turnarounds require precision and speed and accountability above achieving absolute perfection.
About IEC
International Executive Consulting LLC (IEC) supports mid-market and lower mid-market companies to transform operations and achieve growth and global expansion. Our consulting teams along with seasoned interim executives deliver expert services in turnarounds and growth strategy development and U.S. market entry support and organizational growth. We provide cross-sector expertise to serve tech firms and manufacturing businesses and CPG companies which work together with private equity sponsors and family offices.
Discuss your current turnaround requirements with us.
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At International Executive Consulting, we excel in driving business transformation and organizational change - enhancing corporate performance while optimizing efficiency.