When it comes to carve-outs, PE investors naturally tend to focus on financial modelling and risk avoidance. This emphasis is understandable given how crucial it is to get these things right.
Less attention is typically paid to go-to-market (GTM) growth levers such as sales and marketing. While more qualitative and intangible than financial modelling, GTM is just as crucial to value creation. And with COVID market uncertainty clouding multiples, go-to-market matters more than ever before.
RightStar makes the case that no business function has the potential to create greater sustained long-term equity value than sales and marketing. Drawing on our collective experience partnering with over 50 PE firms, this POV offers RightStar perspective on GTM considerations for carve-outs.
Structured as 10 GTM questions the PE investor should ask of their carve-out, the POV covers every aspect of GTM from establishing a new brand and value proposition to determining the most profitable channels to market and what GTM data and tools are required to execute.