Michael Hess’ Post

𝗣𝗘 𝗩𝗮𝗹𝘂𝗲 𝗖𝗿𝗲𝗮𝘁𝗶𝗼𝗻: 𝗧𝗵𝗲 𝗡𝗲𝘄 𝗣𝗹𝗮𝘆𝗯𝗼𝗼𝗸 𝗳𝗼𝗿 𝗘𝘅𝗰𝗲𝗽𝘁𝗶𝗼𝗻𝗮𝗹 𝗥𝗲𝘁𝘂𝗿𝗻𝘀 In today's competitive PE landscape, value creation is the ultimate differentiator. Here are 5 key strategies with real-world examples: 1️⃣ 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗚𝗿𝗼𝘄𝘁𝗵: 𝗗𝗿𝗶𝘃𝗲 𝗧𝗼𝗽-𝗟𝗶𝗻𝗲 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 • Example: Vista Equity's investment in Cvent • Expanded product offerings and entered new markets • Result: Revenue grew from $111M to $569M in 5 years 2️⃣ 𝗠𝗮𝗿𝗴𝗶𝗻 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻: 𝗢𝗽𝘁𝗶𝗺𝗶𝘇𝗲 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 • Example: KKR's investment in Capsugel • Implemented lean manufacturing and supply chain optimization • Result: EBITDA margins improved from 24% to 30% 3️⃣ 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻𝘀: 𝗕𝘂𝘆 𝗮𝗻𝗱 𝗕𝘂𝗶𝗹𝗱 • Example: Thoma Bravo's playbook with software companies • Executed 500+ add-ons across portfolio • Result: Consistently outperformed market returns 4️⃣ 𝗗𝗲𝗯𝘁 𝗣𝗮𝘆𝗱𝗼𝘄𝗻: 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗲 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 • Example: Bain Capital's investment in Worldpay • Focused on rapid deleveraging post-acquisition • Result: Debt-to-EBITDA ratio decreased from 7.7x to 4.3x in 3 years 5️⃣ 𝗠𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻: 𝗣𝗼𝘀𝗶𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗘𝘅𝗶𝘁 • Example: Hellman & Friedman's investment in Kronos • Transformed from on-premise to SaaS model • Result: Exit multiple expanded from 9x to 21x EBITDA Key considerations: → Tailor strategies to each portfolio company's unique situation → Align management incentives with value creation goals → Leverage data and technology to drive decision-making → Balance short-term wins with long-term sustainable growth How are you adapting your value creation playbook in today's market? What strategies have you found most effective in driving exceptional returns?

Did you know that private equity firms own and operate close to 70% of mid-market SaaS and technology companies? PE firms became a backbone of our mid-market technology industry and yet, they are struggling to create and capture value in the new economic environment. The new value creation frontier requires new way of thinking. Our friends at Accenture outlines the levers that matter the most: 💠 Customer Segmentation. Yes, not all customers are equal and to have efficient operating model (we mean great EBITA margins) must differentiate high-touch vs low-touch engagement models. 💠 Customer Experience. It must be effortless. Simple in concept, difficult to achieve in practice. 💠 Technology improvements. While tech alone will not contribute to value creation (yes, let's debunk this myth!). If applied to support customer segmentation and enable effortless customer experience, that is the winner! Since we love value creation so much, we are one ping away from jumping on quick call to discuss what might work best for your company. https://www.loremex.com/ #PrivateEquity #SaaS #ValueCreation

𝗧𝗵𝗲 𝗞𝗲𝘆 𝘁𝗼 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗚𝗿𝗼𝘄𝘁𝗵: Is Your GTM Strategy Agile Enough for 2024? Today’s market landscape is evolving faster than ever, and traditional Go-to-Market strategies often fall short. The answer? Agility. As we look toward 2024, businesses need to adapt, respond, and pivot quickly to stay competitive—especially in regions like APAC and the US where consumer expectations and technologies are shifting rapidly. Here are 3 things you can do today to test if your GTM strategy is up to date: 𝗔𝘀𝘀𝗲𝘀𝘀 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗙𝗲𝗲𝗱𝗯𝗮𝗰𝗸 𝗟𝗼𝗼𝗽𝘀 – How frequently are you gathering and acting on customer insights? Fast, data-driven adjustments are essential for remaining relevant. 𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗲 𝗠𝗮𝗿𝗸𝗲𝘁 𝗥𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝘃𝗲𝗻𝗲𝘀𝘀 – Do you have the flexibility to respond to emerging trends or sudden shifts in demand? Being able to pivot quickly is key to staying competitive. 𝗥𝗲𝘃𝗶𝗲𝘄 𝗬𝗼𝘂𝗿 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗦𝘁𝗮𝗰𝗸 – Is your tech enabling or limiting your GTM efforts? Ensure that your tools are integrated and scalable to support rapid adjustments and growth. What’s your take? How are you planning to keep your GTM strategy flexible next year? Let’s discuss!" #GoToMarketStrategy #BusinessGrowth #SaaS

🚀 Discovering Profitable Growth Delve into a discussion I had with the #ARRtist team. I'll share insights into driving growth and profitability in today's competitive market. A couple of topics we discussed: - The importance of maintaining Product-Market Fit for sustainable growth - Strategies for standardizing products and workflows to enhance operational efficiency - Understanding the role of M&A in creating industrial synergies - Building a high-performing organization through talent acquisition - The critical importance of execution in achieving growth and profitability goals https://lnkd.in/ezVSE75S #PSG #SaaS

Dive into Mi3Australia's latest article and uncover the pivotal discussions from our recent roundtable lunch. 🚀 Together with industry-leading Marketing professionals and Mi3, we explored innovative strategies to enhance Customer Experience (CX) and propel businesses beyond the growth plateau. 🔗 Embark on a journey to transformative growth by reading the full article. To learn more about Customer Experience: https://lnkd.in/g4HX9qTZ #CustomerExperience #BusinessGrowth #Mi3 #AvanadeDoWhatMatters #AvanadeX Joan O'Reilly Emma Scales Dan Wilmott Collin Duff-Tytler Annie Ryan

On the heels of the Cvent + Splash (SplashThat.com) merger, a few questions popped up in my head 1) What does this mean for the event-tech world? Is there now room in the market for a new SPLASH - AI player? 2) Will users still have access to Splash or now do they have to buy a more expensive offerings through CVENT? 3) Where do users go now if they don't want to buy CVENT's software? Is the parent company, Vista Equity Partners that owns Cvent, Adobe Marketo, Salesloft have a new play and want to monopolize the market? All thoughts welcome 👇 #corporateevents #corporateeventtech #eventtech #eventtechnology #eventplanner #corporateplanner #fieldmarketing #b2bmarketing #salesmarketing #sales #marketing #corporates

🎉 Huge congratulations to our partner Optimizely on being named a Leader in the February 2024 Gartner® Magic Quadrant™ for Digital Experience Platforms! This marks their fifth consecutive year as a leader, recognized for their Ability to Execute and Completeness of Vision. Here’s why Optimizely shines: 🏆 Ranked #1 for B2B Use Cases and #2 for B2C Use Cases in the 2023 Gartner® Critical Capabilities for Digital Experience Platforms report. 🤝 Consistently meets customer needs and delivers innovative solutions If you’re looking to elevate your digital experiences, look no further than Optimizely One, the leading DXP platform. ➡ Get a complimentary copy of the report in the comments section below.

Introducing "2GO" by @COSMO CONSULT 🚀   Today, I'm beyond excited to continue our journey to Directions North America with a huge announcement. I want to give you a sneak peek into our latest innovation that's set to redefine specific industry standards - the "COSMO 2GO" product line.   Our new "2GO" series is the embodiment of agility, efficiency, and scalability. It is designed to ✅ support partners with (personal) services by implementing manufacturing templates (2GO-packages) ✅ bring simplicity, orientation and industry standards into Microsoft 365 Business Central ✅ speed up ERP implementations and reduce risks (clear scope, fixed price) ✅ help partners to grow on their speed because of process transparency and high flexibility     Thanks to the inspiring consulting of #ThePartnerSales (Terri Paetz, Peter de Bruin) we’ve created best practices implementation templates for manufacturers in SMB based on Microsoft Dynamics 365 Business Central. Doubling Down on Innovation 🖥️ Building on the momentum of last year, our presence at Directions North America has doubled in scale and ambition. Not only are we showcasing "2GO" at our #EXPO_KIOSK_N1, but we're also backed by a team of experts, ready to engage, explain, and explore our offers. Last year, Torsten Harnack, our Industry Manager for Process Manufacturing, and Paul Albrecht, our Business Development Representative, laid the groundwork for what is coming up. This year, we're elevating the experience with even more COSMOnauts and the on-site support of Terri Paetz (#TPS) Next to myself, Michael Hering, our Industry Manager for Discrete Manufacturing, adds depth with his expertise and insights into discrete manufacturing challenges and solutions. We invite you to join us at expo kiosk N1 to experience "2GO" firsthand. Whether you're familiar with our work or new to COSMO CONSULT there's never been a more exciting time to engage with us. Stay tuned for more updates and make sure to connect with us at Directions North America. Here's to moving forward, together! #directionsna; #thepartnersales; #cosmo2go

𝗜𝘀 𝗬𝗼𝘂𝗿 𝗚𝗼-𝘁𝗼-𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗶𝗻 𝗦𝘆𝗻𝗰 𝘄𝗶𝘁𝗵 𝗧𝗼𝗱𝗮𝘆’𝘀 𝗥𝗲𝗮𝗹𝗶𝘁𝗶𝗲𝘀? As we head into 2025, it's clear that the SaaS landscape is evolving rapidly. The era of "Grow At All Costs" is being replaced by a need for sustainable growth—a shift driven by rising interest rates, liquidity challenges, and global uncertainties. Yet, despite this shift, many businesses are still struggling with one critical metric: GTM Efficiency. 𝗪𝗵𝘆 𝗶𝘀 𝘁𝗵𝗶𝘀 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁? Because poor GTM Efficiency isn’t just a hangover from the frothy days of 2021. It’s an issue that looks bad when compared to 2020 and 2019 as well. We know this because growth is at an all-time low, while Sales & Marketing expenses as a percentage of total revenues haven’t decreased significantly. In fact, GTM Efficiency metrics today are at their worst in years. This isn’t just my opinion - it's backed by 24 quarters of data. As highlighted by David Spitz and the BenchSights team, this metric is more crucial than ever to guide where and how to invest for sustainable growth. But here's the key: Context matters. A GTM Efficiency ratio of 250% isn't intrinsically "bad" if you're in high growth mode, with strong retention, high gross margins, and a favorable market dynamic. However, for the broader market, the trend is concerning. 𝗪𝗵𝗮𝘁’𝘀 𝘁𝗵𝗲 𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻? Start by looking at your own data. Analyse your customer journey and focus on where your GTM efforts yield the most impact. This might mean doubling down on certain motions while re-evaluating others. Use the 'bowtie' model to measure critical aspects like conversion rates and time-to-value. This approach will help you make informed decisions, ensuring your strategy aligns with your current market realities. In a world where external factors are constantly changing, understanding and improving your GTM Efficiency could be the difference between thriving and merely surviving. If you want to dive deeper into this, I recommend exploring our Revenue Architecture course, which is designed to equip executives with the tools needed for scalable and sustainable hypergrowth. Let’s ensure our strategies are built for the future, not just for the next quarter. Credits to David Spitz and the BenchSights team for their great work on GTM Efficiency metrics. #GTM #SaaS #Metrics #Efficiency #RevenueGrowth

The lack of standardization around Account-Based GTM is breath-taking. We’ve been conducting ABM Benchmark Audits of companies from $5 Million to $20 Billion ARR. Right now, it’s nearly impossible to answer how your ABM program ranks vs. peers. After the acquisitions of market research firms: → TOPO in 2019 → SiriusDecisions in 2019 SOMEONE needed to step up and provide clarity, and standardization. THIS is why we’re officially launching the Account-Based Standard at ForgeX. The mission of the Account-Based Standard is to: ▶ Benchmark and provide standardization around terminology, measurement and best-in-class Account-Based GTM architecture. Part of this initiative includes building a mass Benchmarking Database with: 1. In-depth ABM Benchmark Audits 2. Wide-scale Survey Research Our early-access group consists of 16 companies ranging from $5M to $20B ARR who are participating in ABM Benchmark Audits. All participating company names remain *anonymous*. We’re looking to add 24 more to this list → those who participate will receive FREE access to the Benchmarking Database for a limited amount of time. If you’re interested in joining = drop a comment “early access” below or send me a DM. #b2bmarketing #abm #accountbasedmarketing #b2b