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Jim Corey Discusses Survey Findings at New York PEI Operating Partners Forum
PE operating partner survey identifies disconnects between the importance of revenue growth and current capabilities to deliver growth

MCLEAN, Va., Oct. 26, 2016 /PRNewswire/ -- During the 6th PEI Operating Partners Forum in New York last week, Blue Ridge Partners' Managing Partner Jim Corey reviewed important findings from a recent survey of private equity operating team leaders from North America and Europe. The survey points to four primary conclusions:

  • Revenue Growth Is the Most Important Source of Value Creation

    Mirroring previous study results, survey respondents identified revenue growth as the most significant factor in value creation over the next three years. At 58%, revenue growth was deemed to be more than twice as important as all types of cost reductions.
      
  • Many Portfolio Companies Lack the Capability to Accelerate Revenue Growth

    Only 23% of CEOs were viewed as highly capable and self-sufficient to drive accelerated growth. The remaining 77% need spot or significant assistance to accelerate growth beyond what they were doing before the deal closed. Also, only 41% of portfolio companies are effective in applying analytic rigor to unearth new insights for stronger growth. Portfolio company sales leaders relying more on past experience and anecdotal evidence in decision-making than rigorous fact-based analysis.
      
  • Pushing Accelerated Revenue Initiatives Can Be Threatening to CEOs

    Almost 90% of operating partner respondents believed management teams viewed them as either universally or largely trusted advisors. But introducing the need for revenue growth initiatives early in the holding period can be problematic. Most CEOs consider revenue as their responsibility and are sometimes resistant to assistance.   PE operating partners need a non-intrusive approach to help CEOs examine opportunities for accelerated growth early in the holding period.
      
  • Most PE Firms Lack Systematic and Repeatable Approaches for Accelerating Revenue Growth

    Survey respondents said almost half of their operating team personnel are missing the skills necessary to identify and help improve sales force effectiveness, lead generation, pricing, product expansion, entering new end markets, etc. They need systematic and repeatable processes that can be applied consistently across the portfolio. But only 20% of survey respondents said their operating teams had a standard approach for diagnosing revenue performance and identifying growth levers.

For the complete survey summary click here.

Jim Corey, Managing Partner, Blue Ridge Partners

 

Blue Ridge Partners is exclusively focused on helping companies accelerate profitable revenue growth

About Blue Ridge Partners
Blue Ridge Partners is a management consulting firm exclusively focused on helping companies accelerate profitable revenue growth. The firm works with private equity firm portfolio companies and with Fortune 500 and upper middle market companies to enhance their strategic understanding of markets and customers and to improve execution in sales and marketing organizations. For more information, visit www.blueridgepartners.com.

Contact:
David Schutzman
David Schutzman Marketing
Greenwich, CT
203.550.8551
david@davidschutzmanmarketing.com

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SOURCE Blue Ridge Partners