How We Doubled Exit Multiples Through GTM Transformation: A PE Portfolio Case Study

In today's competitive PE landscape, multiple expansion through operational improvements remains the holy grail. Yet surprisingly, many firms still overlook the transformative power of strategic go-to-market (GTM) optimization. Here's how we helped one B2B software portfolio company double its exit multiple in 18 months through systematic GTM transformation.

The Starting Point: Good Product, Scattered GTM

When we began working with this mid-market SaaS company (revenue $50M ARR), they had:

• Strong product-market fit in their core segment
• 15% YoY growth (below market rate)
• Customer acquisition costs 30% above industry benchmarks
• Sales cycles averaging 90+ days
• Limited success in enterprise expansion

The company wasn't broken – it was simply leaving significant value on the table.

The GTM Diagnosis

Our initial assessment revealed three critical areas holding back growth:

1. The sales team was spending 60% of their time on poor-fit opportunities due to unclear ideal customer profiles
2. Product packaging and pricing failed to capture full value, especially from enterprise customers
3. The channel strategy was unfocused, trying to serve five vertical markets with the same approach

The Transformation Approach

Rather than boiling the ocean, we focused on three high-impact initiatives:

1. Ideal Customer Profile Refinement

• Analyzed win/loss data across 500+ opportunities
• Identified two highly profitable micro-segments
• Rebuilt targeting criteria and lead scoring
• Realigned marketing spending to these segments

2. Value-Based Pricing Overhaul

• Conducted customer value analysis
• Developed tiered pricing aligned to value metrics
• Introduced industry-specific packaging
• Created enterprise pricing framework

3. Channel Optimization

• Reduced vertical focus from five to two industries
• Built industry-specific sales playbooks
• Developed a specialized partner program
• Created vertical-specific marketing assets

The Results

Within 18 months:

• The growth rate increased to 35% YoY
• Sales cycles reduced to 45 days
• Customer acquisition costs decreased by 40%
• The average contract value increased by 85%
• Net revenue retention improved from 105% to 125%

Most importantly, these improvements helped drive multiple expansions from 6x to 12x revenue at exit.

Key Lessons for PE Portfolio Companies

1. Focus drives results: Trying to serve everyone serves no one. The courage to focus on specific segments unlocks exponential growth.
2. Value-based pricing works: Most B2B companies dramatically underprice their solutions. Scientific pricing optimization can unlock immediate value.
3. Execution is everything: The best strategy means nothing without systematic implementation. Success requires both the right plan and the right execution playbook.

The Hidden Opportunity

While every company is different, we consistently see that targeted GTM transformation can drive multiple expansions of 2-3x when executed properly. The key is knowing where to focus and how to drive systematic change.

Are you looking to unlock similar value in your portfolio companies? Let's discuss how targeted GTM transformation could drive multiple expansions in your specific situation. Marco Giunta ??