The Status Quo in the Industry

While many firms in our industry promise “value added” services and partnerships, most private equity firms are owned and managed by career investors that have never experienced the day-to-day operational challenges of building a business. These firms provide valuable expertise and advice gained from the “pattern recognition” developed by deal professionals who have seen many different companies involved in a broad spectrum of challenges. This critical sideline support is particularly valuable when small businesses are attempting to accelerate growth, but it is only half of the equation.

Because most private equity firms are created and managed by deal guys, operational expertise is generally deficient which may create a strain on the partnership with entrepreneurs and portfolio company executives. Many funds recognize their deficiency in providing true operational know-how and have attempted to solve the problem by bringing on consulting groups or outside advisors - a worthy effort but with significant limitations.

The Resurgens Approach

 

In-House Operational, Executive Team

Just like any other business, not everything in a private equity firm can be outsourced. We believe operating capabilities are at the core of what a modern-day private equity firm should have in-house. Entrepreneurs and technology executives deserve senior, experienced professionals who have run companies and dealt with the same issues they are facing. It’s no longer sufficient to have task-oriented, junior and mid-level professionals with modest economic incentives. As a company partnering with Resurgens, you’ll have more incentives in the hands of Resurgens operating professionals who can help you grow your business – not just other “deal guys” you never meet who are out looking for the next deal.

Operational Strategies Specific to Your Business

As successful entrepreneurs and investors who have collectively helped transform many small businesses into high growth companies, we know the importance of developing sales, marketing, HR, finance, and development teams that can grow revenue and simultaneously scale operations to the next level. Key decisions, such as who to hire first and how to build a best-in-class sales and marketing capability, can change the trajectory of an emerging company. Successful change cannot be accomplished with “one-size fits all” playbooks or slide decks that apply to every business.

We have a very strong point of view on how to compensate a sales rep, how to design a sales coverage model, how to optimize the renewal process, and more; but, these things are not implemented through template formulas or writing lines of code. Real operators understand that proven methods, processes, and systems are critical for optimal growth, but they must be implemented in the context of the specific business with people and change management in mind. In fact, here are a few of our own operational do’s and don’ts when working with portfolio companies:

  1. We don’t create standardization, templates, and processes that benefit us more than you. You’re an entrepreneur partially because you don't like bureaucracy. We won't change that.
  2. We don’t give you a playbook.
  3. We don’t pitch you individuals and advisors that you will never see.
  4. We do challenge you and help you become a world-class sales & marketing organization.
  5. We will apply our own resources and will be active in making sure that your talent base across the board is a competitive advantage.