End-of-year review: Finance Executive Search

There have been opportunities in life sciences, FMCG, and digital health/SaaS this year, writes our Finance Lead, Spencer Tarrant. Read on for his take on the year that was!

The year 2024 has been a defining one for organisations navigating uncertainty, yet it has also marked a period of transformation for those bold enough to embrace change. With economic headwinds still very much present, including rising interest rates, inflationary pressures, and overall market caution, businesses are forced to tread carefully. However, for those in high-growth sectors such as life sciences, fast-moving consumer goods (FMCG), and digital health/SaaS, the opportunity for strategic leadership has never been more significant.

Transformation is not optional – it is essential. While many organisations have taken a ‘wait and see’ approach, scaling back on major investments and pausing large-scale system upgrades, those with vision are pushing forward. The pause button may seem appealing in turbulent times, but the real leaders are the ones who are innovating, recalibrating, and preparing for the eventual market recovery.

Private equity overview and finance executive search trends to watch in 2025

In the world of private equity (PE), transformation has always been a cornerstone of deal-making and portfolio growth, and 2024 has been no different. As the market cools and recalibrates, the role of the CFO has only grown more critical in driving operational efficiency, cost containment, and long-term value creation.

The PE landscape in 2024 has been defined by complexity and opportunity alike. While deal volumes have slowed due to rising capital costs and macroeconomic concerns, investor interest in sectors like life sciences and digital health/SaaS remains robust. What’s different now is the shift in focus from financial engineering to operational value creation. The cost of capital is high, and private equity firms are increasingly seeking value through strategic growth, cost optimisation, and deeper operational improvements, rather than relying on financial manoeuvring. The demand for innovative healthcare solutions, particularly in digital health and life sciences, is a major driver for continued PE activity in these sectors.

As we see interest rates rise and economic conditions tighten, CFOs are stepping up as leaders capable of managing the intricate balance between growth, risk, and compliance. They are tasked with driving performance through operational initiatives, improving financial transparency, and aligning investments with ESG (Environmental, Social, and Governance) goals – all of which are critical for attracting investor confidence in today’s volatile market.

The growing need for exit strategies, including IPOs, strategic sales, and secondary buyouts, has further elevated the role of CFOs. They are responsible for ensuring their companies are not only prepared for exits but are positioned for maximum return. Whether it’s optimising capital allocation or driving operational restructuring, CFOs must be at the helm, guiding organisations through the current market turbulence into 2025.

CFO Movements in life sciences, FMCG, and digital health/SaaS

As the private equity market matures, the talent pool of CFOs continues to evolve. Companies in life sciences, FMCG, and digital health/SaaS are increasingly seeking CFOs with a blend of traditional financial expertise and industry-specific nous to drive transformative change in these high-potential sectors.

Life sciences: navigating complexity and growth potential

The life sciences sector remains a hotbed of private equity investment, driven by its immense growth potential and the ever-evolving dynamics of healthcare and pharmaceuticals. However, the industry’s complexity, including long drug development timelines, regulatory hurdles, and the high costs of R&D, requires CFOs with a deep understanding of biotech, clinical trials, and pharmaceutical commercialisation.

In this environment, CFOs with backgrounds in biotech startups or venture capital-backed firms are increasingly in demand. These professionals understand the unique financial pressures that come with innovation, especially in early-stage drug development, and are adept at managing the complexities of funding while ensuring sustainable financial health.

What PE firms are looking for in life sciences CFOs:

·       Proven experience in managing R&D and clinical trial funding

·       Expertise in navigating regulatory requirements (FDA, EMA, etc.)

·       A solid track record of leading M&A and licensing negotiations

·        

FMCG: adapting to economic pressures and sustainability demands

While the FMCG sector is generally considered more stable than high-tech or biotech industries, it has not been immune to the broader economic challenges of 2024. Rising input costs, supply chain disruptions, and changing consumer behaviour are forcing CFOs to step up in driving cost control, margin optimisation, and supply chain efficiency.

PE firms are increasingly seeking CFO candidates with global operational experience who can navigate multiple challenges across currencies and markets. In an era of rising labour and raw material costs, CFOs are tasked with keeping margins intact while ensuring operational efficiency. There is also a growing emphasis on sustainability, with CFOs being called upon to integrate ESG goals into financial strategies. (Earlier in 2024, Venari Partners welcomed Alex Hyde to assist our clients with sustainability hires.)

Key areas of focus for FMCG CFOs:

·       Cost control and margin optimisation

·       Supply chain management and supplier negotiations

·       Sustainability initiatives and aligning financial strategies with ESG goals

Digital health/SaaS: growth, scalability, and regulatory compliance

The Digital Health and SaaS sectors represent a significant opportunity for private equity investors in 2024. The demand for healthcare solutions and software-as-a-service models is growing at an unprecedented rate. However, scaling these businesses to profitability presents its own challenges. As the market matures, private equity firms are seeking businesses that not only offer growth potential but also have a sustainable and scalable revenue model.

For SaaS businesses, this means balancing customer acquisition costs with long-term lifetime value (LTV) and customer retention. For digital health, navigating the complex regulatory environment (e.g., HIPAA in the US, GDPR in Europe, CE Marking in the UK) is critical. CFOs must ensure regulatory compliance while also managing the significant financial resources required for R&D and technology investments.

There is a clear demand for CFOs who can straddle both finance and technology, as they must be able to handle the intricacies of subscription-based revenue models, financial planning for rapid scaling, and managing high-tech R&D budgets. As M&A activity intensifies in this sector, CFOs with strong expertise in deal structuring, due diligence, and post-merger integration are becoming essential leaders.

What PE firms are looking for in Digital Health/SaaS CFOs:

·       Expertise in managing subscription-based business models

·       A deep understanding of health data privacy regulations

·       The ability to oversee strategic M&A activity and post-merger integrations

Conclusion

The role of the CFO has undergone a dramatic evolution. The market may be more cautious, but for those in high-growth sectors the opportunities are vast. Private equity firms are looking for CFOs who can not only manage complex financial landscapes but also drive operational efficiencies, create value through innovation, and navigate the complex regulatory environments that characterise these industries.

As we look ahead to 2025, the role of the CFO will continue to expand. Technology will remain a key enabler of transformation, and those who embrace it will position themselves and their organisations, at the forefront of industry leadership. With the end of inflationary pressures in sight and political uncertainties behind us, 2025 promises to be a year of significant opportunity for finance leaders. Now is the time to act, innovate, and lead the way.

I would be delighted to help you with your talent needs across the finance executive search space and finance transformation in 2025 – just get in touch to find out more!