Skip to Main Content
Private Equity

Driving Value Through Go-to-Market

Author
Matt Greenstein Prinicipal

Part 1 of 3

Recent years pushed private equity partners and their portfolio companies to seek additional paths to create enterprise value. Go-to-market (GTM) – Marketing, Sales and Service – became a popular area of focus as traditional plays were insufficient.

Companies great at delivering value through GTM do three things well:

  1. They plan and operate holistically. They start with strategy. They align their investments in structure with strategy. They utilize management systems to reinforce strategy execution.
  2. They know where growth will come from. They tune their models in alignment with growth pathways. They operate agile organizations that respond to market and customer shifts.
  3. They utilize tactics to realize value. They invest in leadership, enablement, change adoption, communication and monitoring systems.

This series offers a holistic framework for private equity firms and portfolio company executives to build, evaluate and optimize their GTM function. The series offers a view of what great GTM looks like and highlights the capabilities and plays that deliver results. Finally, it describes the tactics private equity operating teams and portfolio company executives employ to realize GTM value.

Alexander Group’s Revenue Growth Model™ – A Holistic GTM Framework

Key Topics
Close
Subscribe to our latest insights
Alexander Group, Inc. Revenue Growth Model

Businesses that demonstrate the ability to deliver consistent, above-market organic growth are worth more. Developing and maintaining this capability can be thought of in (3) parts: Strategy, Structure and Management.

Strategy

Start with strategy. Define the most attractive segments where the business has a right to win. Articulate pricing strategy by segment and how the offering will be brought to market. Understand what drives customers to a purchasing decision. Craft your messaging and value propositions to resonate with your ideal customer profile. Scope marketing, sales and post-sales motions to align with how customers buy and their value to the business.

Structure

Once strategy is defined, the business is ready to invest in the structure needed to execute. Structure includes the marketing, sales and service channels (digital, 3rd party, direct team members, etc.). The next decision is jobs and organizational structure. The organization is then sized (headcount) in alignment with the financial plan. Resources are deployed centrally and locally and against priority customers. Sales territories and account portfolios are crafted. Service deployment models are defined (dedicated, pooled, etc.).

Management

With the structure defined, it is time to align the management systems and levers that drive daily execution. Populate the organization with the needed skills and capabilities. Enable talent with onboarding, product and skill training, and career development frameworks. Maintain processes such as planning, pipeline, forecasting and management cadence. Leverage goals, incentives, and other rewards and recognition programs to motivate execution.

Underscore the model with Revenue Operations – people, process, and technology – that enable execution. Task this function with supporting price governance, new product launches, voice of customer and cross-functional efforts.

Alexander Group’s Revenue Growth Model™ serves as a holistic framework to build, evaluate and optimize the GTM model. In part 2 of the series, we will offer a view of “great” GTM, covering the strategies and tactics that high-performing organizations utilize to deliver profitable, above-market growth.

Need Help?

For more information on how you and your portfolio companies can drive valuation through GTM strategies, please contact an Alexander Group Private Equity practice leader. Join Alexander Group’s PE Insiders Council and be the first to gain access to our latest research, insights and benchmarks!

Related Insights

Back to Top