What do new trade policies and market volatility mean for executive search and investment in finance?

There has been plenty of uncertainty in the market lately. In this article, Spencer Tarrant, our Finance Executive Search Lead, considers the impact of combative trade policies and economic turmoil on executive hiring and investment strategy. 

If you read my article in January about what Trump re-entering the White House could mean for 2025, you will see some of the predicted impact is starting to take form. It’s safe to say that we’ve seen quite a bit of economic turbulence lately. US tariffs on imports from Europe, as well as Canada, Mexico, and China, have been met by countermeasures from these respective territories – all of which has come with declining consumer confidence and injected fresh uncertainty into global markets. How the trade war might affect the UK remains to be seen, though that didn’t stop recent jitters about the domestic bond market.  

The global economic picture has been completely upended over the past two months. The long-term impact remains uncertain – Trump has refused to rule out a recession – but businesses are already assessing how shifting policies and market conditions will shape their investment strategies, hiring decisions, and leadership priorities. 

For companies navigating this evolving landscape, one thing remains clear: strategic leadership is more important than ever. 

Leadership in uncertain times: the talent advantage 

It may seem natural that tricky times would breed caution in investment and hiring. However, history has shown that businesses that take a proactive, rather than reactive, approach to leadership strategy often emerge stronger. 

Executives who can anticipate challenges, drive efficiency, and identify new growth opportunities will be invaluable in an economy that demands resilience. Having personally managed highly volatile multimillion P&Ls through the recession of 2008 and worked closely with CFOs navigating transformation, I’ve seen firsthand that leadership in volatile times is about more than just risk mitigation: it’s about agility. The best leaders don’t just steady the ship; they redefine the course, offering persistence while spotting new opportunities. 

From what I’ve seen in recent CFO hiring mandates, there’s been a clear shift in priorities. Cost management has always been central to the CFO role, but the emphasis has evolved. Companies are no longer just looking for financial leaders who can cut costs – they need CFOs who can optimise operations, leverage technology, and position their businesses for long-term success. Investing in people who can bring this thinking to the table is well worth the effort.  

Rather than defaulting to headcount reductions, the best finance leaders today are taking a strategic approach to cost efficiency, exploring: 

• Supply chain restructuring to offset tariff-driven price fluctuations. 

• Automation and ERP investments to reduce manual inefficiencies and improve financial visibility. 

• Smarter capital allocation, ensuring investment decisions align with long-term resilience, not just short-term balance sheet optics. 

Increasingly, CFOs are expected to work more closely with commercial functions to ensure contracts are structured for long-term profitability, not just top-line revenue growth. In industries like private equity-backed businesses, SaaS, digital health, and aviation, where growth-at-all-costs was once the norm, there’s been a major shift towards sustainable, profit-driven strategies. 

Navigating investment strategies: risk, reward, and resilience 

Economic volatility often prompts divergent corporate strategies. Some organisations take a defensive stance, focusing on cost-cutting and operational efficiencies to protect margins. Others take a proactive approach, seeing market disruption as an opportunity to expand, whether through acquiring distressed assets, investing in digital transformation, or repositioning themselves for long-term competitive advantage. 

From conversations with CFOs, PE firms, and transformation leaders, it’s clear that financial agility is the defining factor for businesses in 2025. PE and VC firms are refining their portfolio strategies, prioritising companies that demonstrate not just cost discipline but operational resilience and a clear path to long-term value creation. Investors are no longer just looking at quick returns or aggressive scaling – they want businesses that can balance profitability with sustainability, ensuring that today’s strategic decisions set the foundation for future growth. 

However, profitability isn’t just about cost control: it’s about ensuring revenue translates into actual margin growth and sustainable value. Many businesses, particularly in high-growth sectors, are reevaluating their approach to pricing, contract structures, and customer acquisition costs. CFOs must play a more active role in shaping commercial strategies, working closely with sales and operational teams to ensure that deals are structured for long-term profitability, not just short-term revenue recognition. 

CFOs are now expected to challenge short-term thinking and focus on sustainable value creation: 

• Are pricing strategies aligned with profitability, not just volume growth? 

• Are commercial teams incentivised to drive high-margin contracts, rather than just closing deals? 

• Is the business optimising for customer lifetime value rather than unsustainable acquisition costs? 

• Are investment decisions positioning the business for long-term resilience, rather than short-term earnings targets? 

More than ever, the CFO's role is about striking the right balance between immediate financial performance and long-term value creation. Businesses that focus solely on aggressive cost-cutting risk eroding their competitive advantage, while those that prioritise smart, manageable efficiencies and strategic investments will emerge stronger. 

Ultimately, sustainable value creation will separate the winners from those left reacting to change. The most successful finance leaders will be those who can align financial discipline with strategic growth initiatives, ensuring that businesses thrive through market cycles, not just survive them. 

Final thoughts 

What do new trade policies and market volatility mean for executive search and investment? These matters don’t just affect hiring and investment – they redefine how businesses operate. CFOs are no longer just financial stewards; they are now transformation architects. From navigating supply chain costs impacted by tariffs to deciding when and where to deploy capital, finance leaders are shaping the long-term viability of their businesses. 

One of the biggest shifts I’m seeing is how CFOs are aligning more closely with commercial teams to ensure new contracts are focused on profit, not just revenue. As investor expectations shift away from pure growth metrics towards sustainable EBITDA performance, CFOs must play a more active role in pricing strategy, cost-to-serve modelling, and contract structuring to drive real profitability. 

Caution is important, but so is action – and the companies that balance strategic risk-taking with operational efficiency will come out ahead. Businesses that hesitate face losing momentum as more decisive competitors seize the opportunities ahead.  

For executive search, this means the demand for CFOs and finance leaders with both operational and strategic transformation experience will only increase. In the investment landscape, firms that prioritise financial agility, tech-driven efficiencies, and resilient leadership will be the ones that thrive. 

I’ll be expanding on this theme in my next blog, where I’ll explore how businesses can move beyond hesitation and take decisive action in an uncertain economy. Stay tuned!  

In the meantime, if you’re wondering how to navigate these shifts in the market for your business, or a finance leader considering your next move, let’s have a conversation. I’d love to share insights from both the market and my own experience in running businesses and advising leadership teams – drop me a line today.