The way sales are structured and managed can have a major impact on the embedded value of high-growth private companies and private equity funded businesses.
To optimize business value sales should be:
Focussed on recurring and predictable income streams rather than the peaks and troughs that feature in many high-growth businesses.
Transparent – potential investors should be able to see how the sales ecosystem works, where business comes from, what the business’s customer value propositions are, why the business is concentrating on particular customer groups and offerings, what sales knowledge and skills are in place, needed and being developed, what tools are in place to monitor and raise sales performance.
Scalable and replicable – are sales dependent on the “mysterious activities of talented individuals” or is there an efficient and effective sales “machine” that will be able to grow with the business?
C3 can make a contribution in 4 areas:
- Pre-investment sales due diligence. Can you believe the sales promises of your intended investment?
- Intensive sales uplift: Review and radically improve the sales machine in the first 100 days.
- Build business value through sales: Projects to develop sales processes, tools, capabilities and leadership. All focused on building the embedded value of the business.
- Preparing the sales organization for exit: Demonstrate embedded value from the sales machine to potential investors.