Throughout my career, I’ve had the privilege of working with a wide range of companies, from billion-dollar healthcare organizations to mid-market MSPs and SaaS startups. Many of these companies, at some point, find themselves intertwined with private equity—whether they’re already owned by a PE firm, positioning themselves for acquisition, or striving to grow to a level where they can attract PE interest.
When private equity enters the picture, the stakes rise. There’s a relentless focus on consistently delivering top- and bottom-line results. Over the past decade, I’ve honed my expertise in strategies that drive organic growth while enhancing profitability—key factors that either satisfy existing private equity owners or make them eager to invest in your business. Here are five critical insights that can propel your company to the next level:
1. The Power of a Well-Defined Strategy
A solid strategy is the foundation of any successful business. It’s not just about having a plan; it’s about having the right plan. Who is your target audience? Be precise—your product or service isn’t for everyone. What are you selling them? Hint, it’s about the outcomes your solutions provide, not just the product/service features. How does your offering stand out from the competition? When your strategy is dialed in—when you’re engaging the right people with the right message—you set the stage for all your sales and marketing efforts to work harder and more effectively. This strategic clarity is crucial for achieving the results that private equity firms demand.
2. Balancing Short-Term Wins with Long-Term Vision
I’m a firm believer in building a sustainable revenue ecosystem. However, I’ve also witnessed too many executives lose their positions because they focused solely on long-term goals without delivering enough short-term results. In a private equity environment, you need to show significant progress within a couple of quarters. That means being strategic and scrappy. Identify quick wins, such as upselling to current customers or leveraging strategic partner referrals, to drive immediate revenue while you build a robust, long-term revenue-generating machine.
3. Cultivating a High-Performance Sales Funnel
After less than a year of working with Thinc Forward, an IT Managed Services Provider for midmarket and enterprise companies, their pipeline has quadrupled. The key to this explosive growth? A combination of exceptional in-house talent, strategic focus, and accountability. By clearly defining our target audience, implementing and consistently utilizing a CRM system, tracking pipeline movement, and fostering accountability through weekly sales meetings, we have been able to increase momentum and drive results. “With AmplifyGTM‘s help, the discipline we’ve applied to our sales funnel has not only accelerated our growth but also solidified our position as a top performer in the eyes of potential investors,” said Daniel DiOrio, CEO of Thinc Forward. A disciplined, data-driven approach to managing the sales funnel is essential for sustaining growth and delivering the metrics that private equity firms expect.
4. Aligning Sales and Operations for Maximum Profitability
In a private equity-backed company, you can’t afford to focus only on topline growth. PE firms want it all—topline growth and healthy bottom-line margins. This requires a deep understanding of which customers and products are truly profitable. Your product strategy must be informed and agile, ensuring that you’re not just selling but selling profitably. This alignment is particularly critical in industries like IT managed services, where labor is the largest expense. Sales and operations leaders must work closely to ensure that the business is bringing in the right kind of work and delivering it efficiently, setting the stage for both growth and profitability.
5. Maximizing ROI: Making Every Dollar Count
Managing a P&L is a game of inches. There’s rarely a single cost-saving measure that will transform your profitability overnight. It’s about making smart decisions across the board. The same principle applies to your sales and marketing budget. One of the first things we do when working with a company is identify what’s working and double down on it. Conversely, we quickly redirect resources away from underperforming areas to initiatives that drive greater impact. In a private equity environment, where every dollar counts, this disciplined approach to resource allocation is crucial.
These strategies are not just about surviving in a private equity environment; they’re about thriving. By focusing on these key areas, you can drive the organic growth that will either keep your PE owners satisfied or make your company an attractive acquisition target.
