Tariffs, Recession Risk, and the CFO’s Mandate

How Private Equity Portfolio Companies Can Stay Ahead

As tariff uncertainties increase and recession concerns mount, CFOs at private equity-backed companies face a particularly complex economic landscape. Disruption in global trade, rising input costs, and softening demand are converging, threatening both near-term performance and long-term value creation. For private equity sponsors and their CFOs, preparation is not optional, it’s essential.

At Palm Tree, we specialize in helping private equity sponsors and their portfolio companies navigate uncertainty. Our hands-on financial and operational support focuses on what matters most: cash visibility, structural agility, forecasting precision, and actionable data.

Dual Threat: Tariffs and Recession Pressures

Recent shifts in trade policy—especially new or expanded tariffs—are materially impacting input costs and supply chains. Portfolio companies that rely on global suppliers’ face mounting financial pressure.

At the same time, economic indicators are flashing caution. Whether it results in a recession or prolonged stagnation, CFOs need to be ready with clear, adaptable strategies.

What We Offer

Palm Tree equips private equity firms and their portfolio companies with the tools and insights needed to prepare for—and navigate through—tariff uncertainty and recession risk. We offer a focused Recession & Tariff Readiness Assessment to:

  • Improve cash and liquidity management

  • Build cost structure agility

  • Align forecasting with operations

  • Ensure timely and accurate financial reporting

Core Readiness Areas

Key focus areas that strengthen foundational financial and operational capabilities to withstand tariff and recession pressures:

Cash & Liquidity

Improve forecasting, working capital visibility, and KPI accountability.

Cost Structure Agility

Evaluate cost flexibility, model savings, and track tariff impacts.

Forecasting Integration

Connect sales, operations, and finance in dynamic plans.

Financial Reporting

Shorten close cycles, enhance variance analysis, and prepare for audits.

Resilience Enhancement Toolkit

A set of advanced tools designed to help CFOs take proactive, data-driven action in the face of economic uncertainty:

Scenario Planning

Simulate tariff, FX, and recession impacts with dynamic models.

Supply Chain & Margin Protection

Map supplier risk and assess cost pass-through feasibility.

Debt & Covenant Compliance

Forecast covenant risk and support lender engagement.

Labor & Workforce Planning

Optimize compensation models and workforce structures.

Pricing Strategy

Analyze margin elasticity and design strategic pricing actions.

Board & Sponsor Reporting

Deliver timely flash reports and stakeholder-ready dashboards.

Tech & Automation

Modernize financial tools and reduce spreadsheet dependency.

Why Now

With mounting global and economic pressures, these factors highlight the urgency for CFOs to act:

  • Tariff exposure is rising

  • Recession indicators are flashing

  • Private equity needs resilience, not reactivity

Outcome

By being prepared and proactive in today’s complex market environment, CFOs can drive clarity and control across the organization, resulting in:

  • Rapid insights

  • Practical action plans

  • Cross-functional alignment

Let’s Talk: Reach out today to schedule your custom Recession & Tariff Readiness Assessment. Help your CFO move from reactive to prepared—and create value through uncertainty.

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