• Top-line growth is vital to enhancing the overall valuation of a business.
  • Private equity-backed CFOs must ensure sales are driven in a manner that is trackable, scalable, and aligned to the organization’s high-level financial targets.
  • CFOs often must navigate initial resistance from sales leadership before they can successfully implement new practices and stronger controls.
  • Finance chiefs play a crucial role in ensuring critical sales systems such as CRMs drive visibility, accountability and results.

Growth is a foundational component of the modern LBO playbook. Rapidly growing businesses trade at higher multiples while top-line stagnation decreases an organization’s enterprise value.

PE-backed executives must support growth while ensuring it does not come at the expense of the long-term health of the company. Chief revenue officers tend to fixate on sales teams hitting quotas. It is incumbent on the finance chief to ensure any incentivized sales behavior aligns with key organizational goals. Key areas of scrutiny include contracts, terms and conditions, KPIs, quotas, and compensation plans.

Strong pipeline visibility is central to sustainable growth. A business should be aware of not only their typical sales cycle length but also costs associated with lead generation and the process of escorting a lead to a revenue-generating activity. Customer segmentation is vital to understanding lead quality and accurately forecasting potential revenue. Establishing detailed pipeline intelligence requires close collaboration between sales and finance, and sales-op leadership can be a key conduit in this partnership.

PE-backed CFOs leverage several best practices to...