The Benefits of a Fractional CMO for Private Equity Firms

From Strategy to Execution: A Full Team Approach with a Single Point of Responsibility

As a private equity investor, you’re an expert at seeing the potential in a business. But you may also be familiar with the fact that in many cases, the founder of that business doesn’t have the background or knowledge as to how to actually reach it. This is why more and more private equity firms that invest in small- to mid-size businesses or start-ups ready to scale up are leveraging the benefits of fractional CMOs.

What will a Fractional CMO do for my Private Equity Company?

Fractional CMO services offer the full executive power of seasoned Chief Marketing Officer through a fully customized commitment. These subject matter experts work with you for a fixed amount of time in a given month, utilizing their proven experience and success to assess the risk, value, and potential of your acquisition through a flexible investment.

A fCMO will lead, manage, and deliver a return on your investment by:

• Managing the day-to-day function of the marketing team
• Working closely with your leadership team and other stakeholders, such as CEOs, CSO, VPs, the Board, as well as Salesforce
• Delivering ROI to determine whether to continue to invest in each area of the marketing programs
• Working closely with the sales group to ensure that leads generate receive the appropriate attention and follow through (this is key!)

This model is perfect if your portfolio company needs a marketing reset, its current management team lacks senior-level marketing talent, it cannot afford/doesn’t need a full-time marketing department, or it wants to reduce the risks of developing and implementing a new business marketing plan.

Setting the Stage for Fractional CMOs in Private Equity Companies

The marketing landscape is rapidly changing, and recent trends are amplifying the benefits in using fractional CMOs and digital marketing team.

1. Smaller to mid-size businesses are starting to invest much more in online marketing but cannot afford a full-time marketing department — or they just don’t need one.
2. The startup scene is thriving. Over 800,000 new businesses are emerging every year (SBA, 2021) only an estimated 20% of which will be operating in five years. Fractional CMOs are a great fit as these companies start to scale up, but many are pursuing these partnerships early in the development stage to make their product or service more appealing to intial customers.
3. Advancing technology and the rise of remote working has made it easier to collaborate with fractional CMOs and fractional digital marketing teams.

When a Fractional CMO can Help Your Portfolio Company

fCMO services could be a great fit for your portfolio company if one or more of the following applies:

• The company needs to accelerate growth, but either lacks a complete marketing department or executive guidance and leadership.
• You’re interested in getting an independent, outside perspective on the business, its marketing strategy, and its commercial tactics.
• The company is a startup needs to hit the ground running but currently does not have the time or budget to hire a full in-house team.
• The company needs marketing leadership and support to keep up with competitors but isn’t in the position to incur the high costs and risks in searching, training, and developing an in-house team.
• The company’s CEO (or another senior leader) is spending more time on marketing at the expense of other priorities.
• The company is starting to launch more products and services and needs to increase bandwidth quickly or needs specialized expertise.

Accelerating Growth & Value Creation Pre- and Post-Acquisition

&Marketing not only helps you uncover the true potential of your investment, but it can also complement your fractional CMO with a full team of digital marketing experts to handle the entire creative execution. Unlike other providers who leave that to the company or a third-party, &Marketing offers a full-team approach with a digital-first fCMO that becomes a key part of your leadership team supported by our digital marketing experts who will take full responsibility of your company’s strategy — from pre-acquisition due diligence to post-acquisition delivery.

We’ve built a network of 40+ digital-first, ROI-driven fCMOs with proven experience as external consultants and leading in-house marketing departments to ensure every facet of your strategy is connected in the most effective way. These battle-proven executives lead your marketing due diligence, while digital marketing specialists handle the creative execution to ensure your efforts drive the most meaningful results.

Helping Portfolio Companies Succeed

Your team of digital experts will help you gain a deeper understanding of the market’s dynamics, key segments, primary and secondary competition, and most importantly, current and potential customers.

Through a single point of responsibility, you’ll receive:

• A marketing leader on the management team, experienced enough to work with stakeholders, including shareholders, CEOs, and other functional leaders
• A deep understanding of the market dynamics, competition, and customers
• A robust marketing strategy
• Positioning that is “true, distinct, and compelling”
• Content that “informs, inspires, and excites”
• Strong branding and positioning
• Product pricing and new products/services luanches
• Online and media optimization; SEO, Account Based Marketing, PR, etc.
• Customer retention and loyalty programs
• Salesforce marketing material and qualified lead conversion

How Much Does a Fractional CMO for Portfolio Companies Cost?

Full-time CMOs in the U.S. average a salary of $175K, plus benefits, earning between $200-300/hour (Glassdoor). With a time commitment starting at one week per month, our full team of marketing experts led by a fractional CMO start between $15,000 to $25,000 per month (plus any out-of-pocket expenses). This team includes the fCMO, a Marketing Manager, and the subject matter experts needed to creatively execute your digital marketing programs. That means you can get a full team without going through a lengthy and expensive search and hire process — AND the money saved can be used to develop more effective marketing programs and initiatives.

Let a Fractional CMO Lead Your Growth Marketing

Pre- and post- acquisition digital due diligence and a strong marketing strategy allows companies to build their branding, attract new customers, generate leads, maintain customer loyalty, accelerate growth, and more. That’s why executing the best marketing strategy possible is crucial to the growth of your portfolio company in the digital age. A fCMO supported by a digital marketing team offers a single point of responsibility to ensure your business strategy and execution is done in the most effective and successful way.

To see our full roster of seasoned fCMO or learn more about how we can help your acquisition drive long-term success, contact &Marketing today.

&Marketing Case Study: Healthcare Digital Marketing Strategy Simplified

A cutting-edge healthcare technology company (BUDDI.AI), whose target audience includes C-level healthcare executives, was poised for major growth in 2021. However, they were playing in a fragmented competitive landscape that would require them to creatively “break through the noise” in order to build and maintain brand awareness, drive lead generation, and achieve tangible results. To become a true thought leader and partner of choice in the industry, they needed to enhance their digital presence.

About &Marketing

&Marketing provides the robust outsourced marketing department growing companies need without the high overhead costs of big agencies or full-time employees. Our variable model empowers businesses to reach their growth goals through access to the guidance and expertise of senior level strategists and a flexible execution team.