PE Turnarounds – 100-Day VCP for Turnaround Investments (Cerberus playbook for Tech)

100-Day Turnaround Plan – For Tech Investing (how Cerberus Would Do it)

Just sharing my notes and insights on the 100 Day Plan to begin turning around a company (with AI cleanup)

Day 0–30: Rapid Diagnostics & Stabilization

Leadership / Governance

  • After investing, focus on recruiting an interim CRO/CFO if gaps exist
  • Refresh board with experienced software operators / industry veterans
  • Daily cash reporting + weekly KPI dashboard (ARR, GRR/NRR, CAC payback, burn)

Cash & Liquidity

  • Accelerate receivables collection, renegotiate vendor payment terms
  • Push annual/prepaid SaaS contracts to boost near-term cash
  • If lender-owned/distressed, restructure covenants or swap debt for equity

Cost Freeze

  • Halt non-critical hiring and capex
  • Immediate stop on low-ROI marketing campaigns
  • Rationalize overlapping SaaS tools and vendor spend

 

Day 31–60: Portfolio Reset & Cost Rationalization

Product & R&D

  • Audit product roadmap → cut 20–30% of non-core features/modules
  • Reallocate engineers to high-usage, high-ARR modules
  • Start backlog plan to reduce tech debt and improve scalability

GTM (Go-to-Market)

  • Segment customers by LTV / profitability; double down on high-margin verticals
  • Re-train salesforce to focus on upsell / cross-sell vs unprofitable logos
  • Boost customer success headcount to defend renewals before chasing growth

Cost Levers

  • Consolidate facilities; evaluate remote-first structure
  • Optimize cloud contracts (AWS/Azure reserved instances, right-sizing)
  • Shared-services model for G&A (finance, HR, IT)

 

Day 61–90: Rebuild for Growth & Exit Trajectory

Pricing & Monetization

  • Redesign pricing tiers; remove legacy underpriced contracts
  • Introduce premium modules and usage-based pricing for heavy users
  • Pilot pricing uplift on renewals to test elasticity

Operational Governance

  • Zero-based budgeting cycle launched (ZBB resets cost base annually)
  • Monthly board reviews with operational scorecard (cash, EBITDA, retention, productivity)

Strategic Positioning

  • Evaluate tuck-in M&A opportunities to bolster core platform
  • Position narrative for future exit (strategic sale or recap) based on improved profitability and predictable renewals

Execution Differentiators

  • Board/Governance Reset: Refresh governance early as a lever equal to cost cutting
  • Product Focus: Rationalize the roadmap so engineering spend drives ARR uplift
  • Pricing Science: Reset outdated software pricing models to unlock hidden ARR
  • Capital Flexibility: Willing to use credit/distressed tools; renegotiate aggressively with lenders to create breathing room