Frequent gap between market opportunity estimates and go-to-market execution capabilities
The quest for growth is the cornerstone of nearly every buyer’s investment thesis, especially for small and mid-market transactions where less scale and complexity tend to mean fewer cost synergies. Although market size and growth estimates are common inputs to an investment decision, prospective buyers often pay far less time and attention to a target’s preparedness to execute on those estimates. Consequently, significant strategic and operational barriers to growth often come to light once a transaction is complete, creating a drag on results and eroding deal value.
Identify the levers for unlocking and accelerating growth
A thorough understanding of your target’s revenue engine is vital to capturing deal value. Our revenue engine diligence assessment – built on experience that includes supporting nearly 300 transactions per year – provides that insight. It goes beyond the scope of traditional commercial due diligence to help you understand whether your target or portfolio company has go-to-market capabilities to execute your growth agenda.
We review go-to-market strategy documentation and recent performance metrics and conduct targeted conversations with marketing and sales leaders. Then, we use this input to answer key questions related to your target or portfolio company’s sales and marketing strategy, people, processes, and technology. Our uncommon blend of business consultants and deep technologists go beyond surface level recommendations to include technical implications and effort required to achieve desired growth.
Highly-tactical, actionable insights are delivered in as little as 2 to 3 weeks, and can be put to immediate use to inform your investment decision and equip you and your target to prioritize go-to-market improvement opportunities.
Realize true growth potential
Tailored to the specifics of your transaction, our revenue engine diligence identifies performance issues before they become post-deal surprises. More importantly, it highlights improvement opportunities ranging from greater strategic focus to highly tactical operational enhancements – steps that help your portfolio company bridge the gap between market opportunity and market execution and enables your firm to realize the true growth potential of its investment.