Risks of Financial Close Delays

professional profile

January 20, 2026

by a professional from Tulane University - A. B. Freeman School of Business in Portland, ME, USA

We compressed close from 25 days to 5 days. It wasn't technology. Here's how: The closing process was: -Day 15 financials. -Day 20 board packs. -Day 25 if anyone asked questions. By the time our team saw the numbers, many problems were already baked in. Here's what slow close costs PE firms: → 3-4 week decision lag turns small issues into portfolio fires → Reactive management instead of proactive value creation across holdings → Capital allocation delay when you're flying blind on current performance The portcos with 5-day close? They surface anomalies while you can still fix them. They give board-level visibility when it matters. They let you deploy capital based on real data, not stale forecasts. Your move today: Ask your fastest-closing portco what changed when they compressed their cycle. Then pressure-test that playbook across your portfolio. Because the firms driving 25%+ IRR aren't better at picking deals. They're better at seeing problems early.
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