When Beauty Brands Are Approaching an Exit, What Do They Look for in a CFO?

In beauty M&A, timing can influence valuation. But the executive team ultimately determines it, and no role shapes the exit narrative more directly than the CFO.

For founder-led and PE-backed beauty brands preparing for a strategic sale, the CFO becomes the leader who sets the tone for how the business is understood, underwritten, and priced. This is especially important in an increasingly selective market, where buyers reward companies that present as operationally mature long before a process formally begins.

Market Snapshot: What Buyers Are Prioritizing

Beauty M&A is increasingly defined by quality over quantity. While deal volume fluctuates year to year, multiples on strong assets remain healthy. Buyers are gravitating toward brands with disciplined unit economics, marketing efficiency, and clean, audit-ready financials. This shift matters for founder-led companies because expectations have risen. Acquirers today look for institutional-grade reporting, real margin visibility, and a credible path to scale. Brands that can demonstrate this consistently outperform peers in valuation, which makes the CFO one of the most influential hires ahead of an exit.

A CFO Who Understands How Strategic Buyers Think

Buyers want a clear, believable view of how a brand scales across channels, categories, and regions. The CFO must be able to articulate that with clarity and confidence. CFOs who stand out can break down:

• Channel-level margin performance across DTC, retail, wholesale, and international

• Forecasts that reflect true operational capacity rather than top-down assumptions

• Marketing efficiency and the impact of spend on contribution margin and LTV

• Opportunities in SKU mix, supply chain leverage, and inventory discipline

• What makes the brand attractive within a larger portfolio context

A commercially minded CFO who can translate these insights into the language acquirers use brings immediate credibility to a process.

Infrastructure That Holds Up in Diligence

Weak financial infrastructure remains one of the most consistent sources of deal friction. Buyers have limited tolerance for messy historicals, inconsistent reporting, or limited cash visibility. An exit-ready CFO ensures:

• GAAP-compliant, audit-ready financials

• Consistent forecasting and clear unit economics

• Clean systems and reliable internal controls

• Cohesive reporting across sales, inventory, and marketing

• A data room that anticipates the questions buyers will ask

Brands that present as organized and disciplined from day one maintain deal momentum and protect valuation.

Experience That Converts Under Pressure

Beauty has its own operating rhythm—retailer terms, marketing cycles, replenishment patterns, and cost structures that differ from traditional CPG. CFOs who understand these nuances inspire confidence during diligence. The backgrounds that tend to resonate most include:

• Experience in beauty or personal care

• Exposure to high-velocity, omni-channel consumer businesses

• Time in PE-backed or investor-owned environments

• Prior involvement in M&A processes, on either side of the table

While not mandatory, CFOs who have been through an exit before know where buyers push hardest and how to get ahead of potential issues before they surface.

A True Partner to the Founder and CEO

As a company approaches a potential sale, the CFO often becomes the balancing force between entrepreneurial ambition and financial discipline. The most effective leaders in this stage:

• Challenge assumptions constructively

• Synthesize insights across marketing, product, and operations

• Build a growth narrative that is aspirational but grounded in the numbers

• Maintain a steady, objective perspective when decisions become complex

This partnership becomes essential once bankers, diligence providers, and potential acquirers enter the process.

Credibility in High-Stakes Rooms

During buyer meetings and diligence sessions, the CFO is frequently the one fielding the toughest questions. Acquirers look for fluency, composure, and complete command of the numbers. A CFO who presents with clarity and confidence elevates the company’s perceived sophistication and reduces perceived risk, both of which influence valuation.

Bottom Line

For founder-led and PE-backed beauty brands approaching a strategic exit, the CFO is one of the most important value levers in the business. The right hire strengthens the growth story, supports a smooth and efficient process, and protects—or expands—the final outcome. This is the caliber of CFO PE firms and founders come to us for: leaders who know how to operate under deal pressure and help companies stand out in an increasingly selective market.