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The Anatomy of a Durable Commercial Engine
The New PE Value Creation Playbook: Part Three
The Anatomy of a Durable Commercial Engine
"Private equity firms will have to work harder in order to deliver superior returns." — Bain & Company
If private equity firms want portfolio companies to create durable value, they need to look beyond individual growth tactics and assess the commercial engine itself.
Most portfolio companies are not standing still.
Portco Growth: When Sales Stall, Look Beyond the Sales Strategy
Feb 1, 2019 3:10:45 PM — Private equity firms tend to focus on fixing sales when the real problem may be the marketing strategy. We spoke with Clay Spitz of Chief Outsiders about how to better understand what’s behind those disappointing sales numbers. It’s only natural for GPs to fixate on sales. It’s the quantifiable discipline closest to the top line. It’s also prone to problems. A recent survey of 400 B2B salespeople admitted that only 24.3% beat their quotas in 2018. And no private equity firm raises their next fund if their current portfolio is full of companies with underwhelming sales. What’s counterintuitive is that often sales problems aren’t about sales, but marketing decisions. And poorly managed marketing insights, strategy or execution might not be evident until sales slump. Which is why GPs should tap a marketing expert to help diagnose the issue.
Beyond the ABCs of Customer Due Diligence
Dec 14, 2018 10:50:29 AM — GPs can win invaluable insights into a potential acquisition by conducting high level interviews with customers that dive deeper than any standard issue survey ever will. Here’s how GPs can learn much more from talking to a target’s customers. While GPs devote real time and rigor into performing due diligence into a possible acquisition, they sometimes will give short shrift to a constituency that’s key to the growth and the eventual success of the investment: the customer.
Portco Growth: December is a Great Time to Evaluate Strategy
Dec 11, 2018 12:52:39 PM — The end of the year is a great time to step back and look at the broader strategic direction of a portfolio company’s growth plan and go-to-market approach. Here are 5 key elements to a comprehensive review. Private equity firms aren’t afraid of data, and they have kept a close eye on performance metrics all year long. No doubt GPs will know the results and how they stack up against expectations. But as the year draws to close, it might be time to look at the overall strategic direction of your go-to-market approach and marketing effort.