How to navigate the first 100 days post-investment

How to navigate the first 100 days post-investment

For the first part of 2024, investment activity has been low, casting a shower over the start of the year, but the second quarter looks like it is building momentum and ramping up. We are expecting to see an increase in investment levels as we progress further into the year. Private Equity houses are cautiously optimistic and an article written by RSM back in January also predicts a gathering pace.

It’s important to not stand still and start to focus on the next challenge. So, in this blog, we want to get you ready for those crucial first 100 days post-investment, as they’re important for both the portfolio company and the Private Equity firm. At this stage, it is important to set up the priorities of the investment and make sure you get the right recruitment, mindset and results to scale up, succeed and create value.

 

What to prioritise in the first 100 days

The first 100 days are about creating a roadmap that will set the business up with the tools for success. Now that the investment is secured, you need to determine what steps should be taken to set your business up with the right foundations to deliver on your next post-investment set of KPIs.

First, take a look at the commercial due diligence audit that was carried out prior to investment, this will be vital to determine what areas need attention and improvement and what will be under the microscope. It is important at this stage to look at all areas of the business; employees (recruitment), sales, marketing and financials. Each organisation and investment is different, so take a tailored approach and take a deep look into the business structure and ongoings. From this, create an actionable plan. It’s likely that this plan will include lots of actions highlighted as recommendations or “post-deal conditions”. This can be overwhelming, but the CEO, CRO and CMO’s perspective must remain laser-focused on the top KPIs, be that revenue generation or earnings before interest, taxes, depreciation, and amortisation (EBITDA) as defined in the plan. It’s easy to get distracted and that’s why a clear roadmap is required with strategic and operational responsibilities, divided up in this transition phase.

The roadmap should include a transition strategy – this is a great opportunity to define who does what in order for you to deliver on your scale-up goals. Ask yourself the following questions:

  • Who’s responsible for the overall scale-up programme and initiatives?
  • Who’s responsible for the investor relations?
  • Who’s responsible for ensuring the business strategy is aligned with your next set of goals and preparing for the future?
  • Who will be responsible for marketing? And who will measure the success against this?
  • Who will handle the financials?

These answers will help frame the success of the investment.

 

Re-setting the vision and getting the right team in place

As well as management, it is essential to ensure you have all other employees in the right places. It’s important to make sure all staff are on board with the new vision and they understand who the new board members and management team are, and what their purpose is. This will help you set your business up for success and ensure all team members are aligned with the new goals. 

You may need to consider the current structure and job roles, making any necessary adjustments to set the organisation up for success and create the greatest impact in the first 100 days.

Restructuring allows you to make the most of your current staff and determine any other resources you need to bring in for the business to thrive and generate that desired ROI. Once you have your team members in the most beneficial places, you can start to look at the bigger picture.

 

Moreno’s top tips

  1. Take it a step at a time – Transition can be overwhelming and it is important to get it right. Treat it like a detailed project plan and take it day by day to ensure you are making the correct decisions. 
  2. Set priorities and have a clear vision – This will help you frame your roadmap.
  3. Create progress reports – This will help you see the progress that’s been made and help you operate most efficiently. This is a bit like a reality check; making sure you’re on target to deliver on the KPIs set out in the investment stage.
  4. Set up a programme office to manage this activity – If you start well and give it the focus it requires, then success is likely to follow. 

Unsure how to start your 100-day plan? Moreno Marketing provides the sales & marketing blueprint, to find out more email info@moreno.co.uk

Categories