THE VITAL FOURTH LEG OF PORTFOLIO COMPANIES’ GROWTH: THE GO-TO-MARKET NARRATIVE

As someone who has been helping companies grow their businesses and brands for over twenty years, one thing I’ve discovered is that middle-market private equity firms, with their unparalleled sense of urgency, tend to overlook one critical aspect of value creation and company growth: how they articulate their go to market story.

I call this the Vital Fourth Leg.

Once a private equity firm invests in a company or acquires an add-on, the focus

is on extracting value and increasing efficiency from operations, technology, and finances. But in focusing so heavily on their efficiency from their outset, these firms can lose critical marketplace momentum. This error affects clients’ engagement, sales, and, ultimately, bottom-line performance.

Without the Vital Fourth Leg—i.e., “the go to market narrative”—the three-legged stool of operations, technology, and finances will compromise the business’ foundation, lead to the dissipation of precious resources, or limit a private equity company’s ability to optimally harness the value of a new acquisition or add-on.

I’m not suggesting that private equity firms and their portfolio companies stop seeking ways to optimize distribution channels or address infrastructure needs. It’s simply that in the typical middle-market value creation plan, the “go to market narrative” is an afterthought or is not considered at all. But it should be.

The “right,” well-articulated strategic message is the decisive foundation and guide to aligning your organization around key priorities. This enables your salesforce to communicate a value story that drives more clients to act and ultimately grows your company.

What is the “go to market narrative”?

The “go to market narrative” is precisely your reason for operating in the first place. To define its story, a company must answer the following:

• Who are we?

• What is our reason for being?

• Who is the target audience? What do we want them to know? Think? Feel? Do?

• Why would people care? What is the value we deliver?

• How do we talk about ourselves and what set us apart vs. the competition?

• What space can we “own”?

Why is the Vital Fourth Leg so important?

This go to market story is the lens through which all strategic initiatives are viewed. It provides a solid foundation for growth. It is not the financial story. It is not your technology story.

Instead, it is the compelling, strategic business narrative that consistently speaks to what makes your company different, clearly articulates your strategy, and drives “investors” (employees, customers, prospects, investors) to engage with you. When your story is the catalyst for what your offer, when it defines meaningful differentiation in your market, then potential clients buy into it whole-heartedly and sense its authenticity.

The “go to market narrative” pivotally implores your audience to relate to what you’re selling and why you’re selling it. Allworth Financial, a rebranded wealth management company, for example, doesn’t just manage money, it promises people a better retirement.

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So, how stable is your foundation? Have you strategically articulated and identified the “right” story that enables sales and sets the stage for growth?