Private equity (PE) firms are increasingly using a secret weapon to enhance the value of their portfolio companies and generate growth: marketing. PE firms excel at deal flow and restructuring, yet once they’ve acquired a company their toolkit should include strategies that improve brand identity and communications. Operational improvement, of which marketing plays an integral role, is a growing share of the value add provided by PE investors. Strong marketing strategies are proven to create value and attract higher exit premiums.
1. Increase market relevance.
Revisiting a company’s story and key messaging framework can help identify valuable attributes a portfolio company might have that align with current market demands. Identifying emerging or unmet needs in the industry and curating brand messaging that highlights these relevant attributes can be a game-changer in attracting investors, increasing value and capturing market share.
For example, a company may have inherent Environmental, Social and Governance (ESG) characteristics to bring to the forefront of their story in a way that bolsters that company’s overall value.
2. Improve competitive position in the current market.
Ensuring your portfolio companies’ brands and marketing strategies are as strong as possible will position them more favourably to investors. Uncertain markets are an essential time for stronger brands to vault over their more anemic competitors. Strong branding builds a sustainable competitive advantage that can withstand market fluctuations and make a company more resilient to external pressures.
3. Elevate digital presence.
Firms should not underestimate the power of a digital presence. With increased competition for consumer attention online, a harmonious brand presence across all relevant platforms is imperative. A well-designed website, up-to-date social media profiles and strategic content marketing all work to validate a company’s business model, enhance credibility and lead to a better consumer experience.
4. Improve internal and external communications.
Ensuring communications are aligned, both internally and externally, is vital to the strength of a brand. Internally, this can take the form of roadmaps, toolkits and dealer materials. Externally, this can involve communication with key stakeholders and customers, including whitepapers, thought leadership, educational materials and videos. Improved communication channels add value to your portfolio companies by streamlining operational practices and promoting transparency.
A marketing agency can give your portfolio companies the brand refresh they need to generate future value. A strong brand paired with a compelling digital presence, streamlined communications and other marketing materials will help position your companies advantageously, which can bode well for valuations and help promote successful exits.
Ext. Marketing recently won silver at the FCS Portfolio Awards 2023 for our Aqua Finance, Inc. rebrand campaign, and has worked with many other portfolio companies to successfully improve brand structuring and communications.
Discover how Ext. Marketing can add value to your firm. Book a call with us today at firstname.lastname@example.org.