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The Impact of a Fractional CMO's Marketing Audit for Private Equity and Venture Capital Firms

Private equity and venture capital are often hailed for their ability to drive significant growth in investments. However, amidst this drive for expansion, many of these firms lag in deploying effective marketing strategies or even establishing dedicated marketing teams.


They forget to conduct a marketing audit.


It's not unusual to find mid-sized companies in this space running without a proper marketing team or strategy. Translation? Missing out on opportunities to draw attention to their business. This article dives deep into how a fractional CMO's marketing audit can transform the entire game for private equity and venture capital firms.


Pre-acquisition marketing audit for PE and VC firms

We will discover how this seemingly small and overlooked aspect can make a massive difference in their journey to the top!


Setting the stage...


According to the GoForthInstitute.com:

  • On average, 130,000 new small businesses are created yearly in Canada.

  • 98% of businesses have fewer than 100 employees

  • Entrepreneurs with education in entrepreneurship, or previous experience, have an 90% chance of success with a new business.

  • Small businesses account for between 60-80% of all jobs created in Canada.

  • On average, small businesses with fewer than 100 employees contribute about 51% to Canada’s GDP.


The trajectory of private equity deal activity seems to be riding a rollercoaster. The third quarter's $101 billion in announced deals certainly paints a picture of a landscape that's picking up speed (especially when compared to the apparent slowdown observed back in the first quarter.)


According to EY, "These deal activity continues to accelerate as firms get greater visibility into interest rate trajectories and macro volatility begins to recede."


All these recent trends are amplifying the benefits of using fractional CMOs and digital marketing teams.


With the ecosystem booming like never before, the idea of bringing in a full-time CMO feels as outdated as dial-up internet.


And fractional CMOs are especially important when it comes to doing your due diligence.
In the end, it's all about maximizing potential.

Private equity and venture capital firms want their investments to be successful. And guess what?


A well-executed marketing strategy, led by a fractional CMO, could be the key to turning a good investment into a great one.


A marketing audit is a must for your due diligence.


Private equity and venture capital firms often grapple with decision paralysis (trying to strike gold with acquisitions while overlooking the huge potential of a pre-acquisition marketing audit.) But why wait until the ink's dry on the deal to realize the marketing strategy was lackluster or, worse, non-existent?


A marketing audit upfront, done by a fractional CMO, can be the game-changer in this regard. It's about looking under the hood, dissecting the target company's marketing strategies, and asking the hard-hitting questions:


  • Are they tapping into the right demographics?

  • Are their branding and messaging cohesive and effective?

  • Is there even a strategy in place, or are you just throwing darts in the dark and hoping something sticks?


Now, some might argue, "Why bother with marketing before the acquisition? We're in it for the numbers!"

But the thing is: a powerful marketing strategy doesn't just strengthen a company's image... it translates into tangible value.


A shrewd investor knows that a strong brand, a well-defined marketing plan, and an engaged customer base can significantly impact a company's bottom line.


Think of it this way: wouldn't you want to invest in a company with a loyal following, a killer brand presence, and a clear strategy to conquer new markets? Or are you content with pouring money into a ship that's rudderless?


The fractional CMO isn't just a cost-cutting measure (even though that's an important part of it). It's an injection of expertise, an opportunity to spot potential, and a pathway to transform a struggling brand into a market dominator.


It's time for these firms to stop playing catch-up and start making marketing a priority—before they even sign on the dotted line.


Why a fractional CMO and not a full-time one?


Here's the deal: Fractional CMOs offer a cost-effective solution while providing a high level of expertise.


They're like the "special ops" of marketing—focused, efficient, and targeted. These firms might not always require a full-time marketing professional (remember the cost.)


Instead, they need strategic insights and guidance to enhance their portfolio companies' marketing efforts without committing to a big salary and benefits package.


Moreover, private equity and venture capital firms usually invest in multiple companies with diverse needs. A fractional CMO allows these firms to distribute expertise across their portfolio, allocating specialized skills where and when they're needed without committing to a full-time position for each company.

Sure, a full-time CMO brings stability and long-term vision, but sometimes, especially in the initial phases or during specific projects (like the due diligence we mentioned), a fractional CMO offers a more flexible, and cost-efficient approach.


It's about hitting the bullseye without carrying unnecessary baggage—a focused, impactful solution without the overheads of a full-time commitment.


Ready to get the ball rolling? Contact us to get a FREE Discovery meeting.

It's the best way to determine if HaCoeur is the right fit for your business, and there's NO OBLIGATION!


Marketing audit for pre-acquisition due diligence

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