Get the Greatest Returns with Value Creation Planning
Set the Agenda for Value Creation
Deal teams spend significant time and money sourcing, pursuing and winning an asset. While the thesis may center around a market, product, M&A, financial optimization or management team bet, companies can only realize value with go-to-market execution.
Operations teams spend significant energy developing, gaining alignment on and driving the execution of value-creation plans. But unfortunately, these plans often do not pay adequate attention to the team responsible for sourcing and converting revenue—Marketing, Sales and Service.
Alexander Group helps companies lever value through focused planning, deal analysis and successful execution.
VCP: Purposeful Value Creation Planning
A thoughtful commercial value creation plan (VCP) leveraging winning plays puts marketing, sales and service teams on a path aligned with the deal thesis. Being great at VCP execution requires purposeful planning. It starts with diligence, and the first 90 days of ownership are the most critical.
As deal teams approach a win, operations teams and advisors must put a thoughtful commercial value creation plan in place. Alexander Group can partner with you in developing your value creation plan and determining the plays that will provide you with the greatest ROI.
Common commercial optimization levers that deliver the greatest return during the hold include:
Leadership: Install the right human resources to enact change and deploy capital. Quickly transition team members who do not bring the requisite experience, energy and commitment to the value-creation plan.
Pricing: Develop and deploy strategy and discipline to win target markets and pull through value. Adapt packaging to facilitate new logo acquisition and lifetime value capture. Implement policies and procedures to avoid margin leaks.
Segmentation & targeting: Ensure management has a strong understanding of their ideal customer profile. Drive them to map markets at the account level. Compel management to tune their marketing, messaging and value propositions to buyer needs and journeys. Align motions, channels, jobs and resource deployment to the markets where the asset has the right to win.
Channels: Determine whether the business uses the most efficient and effective mix of direct and indirect routes to market. Challenge conventional thinking and push management to adopt a combination of online and offline modes of customer engagement.
Operations & enablement: Motivate management to invest in data, processes and technology to monitor and manage the business effectively. Install measurement systems that monitor performance indicators such as lead volumes, pipeline fill and matriculation, and productivity. Make adequate investments to onboard, ramp up and retain talent to mitigate the risk of sub-optimal productivity and delays in value creation plan executions.
Alexander Group can partner with you in creating and executing your VCP. To learn more and join Alexander Group’s PE Insiders Council, contact an Alexander Group Private Equity practice lead.
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