14 Growth Acceleration Drivers to Create Value at a PE/VC Portfolio Company

Today financial engineering is not sufficient to create value and position a company for a strong exit with great ROI.  Smart PE and growth-stage VC investors take a partnership approach to collaborate with C-Level executives at the portfolio companies to create value and drive sales, marketing and operational improvements for a higher ROI.  It’s well known that combining your expertise in asset selection, market and sector expertise and structuring the deal with portfolio support is key to success – best PE/VC investors want to: implement best practices, develop an optimal sales strategy, bring in best in class demand generation talent, and add a wealth of operational expertise to accelerate the rate of top-line revenue growth to aid the portfolio company to dominate their market.

When creating value for your portfolio companies, 70%+ of the uplift and real value can come from top-line growth.  Here are the 14 drivers that can accelerate this revenue growth.

14 Levers That Accelerate Growth

  1. People
  2. Sales Strategy & Go-to-Market (GTM)
  3. Sales Excellence
  4. Demand Generation Execution
  5. Customer Success
  6. Product Strategy
  7. Geographic Expansion
  8. Platform / Add-On Acquisitions
  9. Executive Management
  10. Strategic Improvements
  11. Capital Structure / Capital Allocation
  12. Operational Efficiency & Improvements
  13. Cost Efficiency
  14. Pricing

 

  1. People 
    • Recruiting Process Improvements
      • Develop a process to bring in the best-in-class people
    • Leveling up skills
    • Improve Employee Alignment
      • Incentivising Employees to Create Value (see: KKR presentation by Peter Stavros)
  2. Sales Strategy & Go-to-Market (GTM)
    • GTM – target the right markets, right customer profiles and using the right channels
    • Market mapping
      • where do you sell the product
  3. Sales Excellence
    • “Sales excellence is the measure of how successful not only an entire organization is at closing more deals, but also a measurement of the success of individual sellers. Sales excellence takes into account how quickly deals are closed, how many deals are won, a sellers comfort with all of the tools at their disposal, an organization’s ability to support sellers, and much more.” – by Seismic
    • Sales enablement – equip your sales team with selling tools and tight Unique Value Prop
    • Improve Sales Rep Onboarding Process & Accelerate Ramp Time
    • Develop sales people more effectively
      • Consistent Training & Certifications
      • Required 1-on-1 Sales Coaching
    • Improve your pipeline growth
    • Customer Segmentation
      • targeted Unique Value Proposition by segment
      • identify the most profitable segments and focus
    • Adjacent Markets
      • identify the best and most attractive adjacent markets
    • Channel Strategy
    • Improve Customer Acquisition Efficiency
    • Sales Org Structure
    • Sales Process
    • Sales Tech Stack
    • Sales Management
      • Level up through Sales Management training and development
      • Focus on Analytical & Metrics-Driven Sales Management
    • Sales & Marketing Alignment
    • Comp Plans & Incentives
    • Sales Culture
  4. Marketing Excellence
    • Marketing strategy
    • Demand Generation
    • Analytical Skills
  5. Customer Focus & Success
    • when you win customers, you need to ensure they are successful with your solution
    • acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one
  6. Product Strategy & Offerings
  7. Geographic expansion
  8. Add-on acquisitions
  9. Improve Executive Management
    • add world-class executives
  10. Strategic Changes
  11. Capital structure / capital allocation
  12. Operational efficiency improvements / Operational Excellence
  13. Cost Efficiency
    • Cost improvements
    • Cutting out unnecessary spend
    • Optimizing budgets
  14. Pricing
    • optimize pricing structure to capture value that you deliver to the customers
    • implement controls to ensure pricing discipline and reduce price leakage
    • bundling to improve cross-selling