Interim C-Level Leadership

Filling a C-Leader role takes time PE firms cannot afford to waste. Underperformers must be replaced, a process that can take three to six months to complete. To fill the gap, many PE firms have discovered the critical link: hiring Interim C-Level Leaders to work in their C-suite for a limited period of time as I-CROs, I-CSOs, and I-CMOs — leaders with the in-depth experience, knowledge, and skill sets required to fix GTM challenges while simultaneously delivering predictable revenue growth.

Three common patterns

1. The rapid exit

   A SaaS company wanted to exit in 12 to 18 months after flat sales; an initial offer came in at a 3:1 multiple. It hired an I-CRO to rebuild its GTM operation. Result: By the end of the six-month term, win rates doubled and offers came in at 6:1 multiples, $27 million higher.
2. The stalled transformation

   The sudden departure of the head of sales nearly derailed a move from on-premises licensing to SaaS. An I-CRO rebuilt the foundation: top talent, redefined territories, pipeline visibility, and a new compensation and quota model. Result: A 160% increase in validated opportunities; SQLs projected to deliver $3.2M in incremental customer value.
3. The revenue miss

   An industrial equipment manufacturer needed 15% CAGR toward $1B in revenue over five years, with several booking misses behind it. An I-CRO delivered a consistent way to identify and prioritize the highest-revenue accounts. Result: Within 24 months the company surpassed its revenue goal and gained a $1.5B valuation.

A Builder is a change agent. They find the gaps in a sales or marketing organization and close them, enabling the right people, systems, and processes, then optimizing them for greater revenue generation, rapidly. They are comfortable in chaos, solve complex problems, execute massive transformations, and meet revenue objectives. Builders fix problems and move on to the next challenge.

A Runner is not a change agent. They maintain a well-oiled machine, making incremental improvements as needed, and thrive in a predictable day-to-day environment. When a PE firm finds a good Runner, they need to retain them to maintain a steady glide path toward an exit. When your operation is broken, you need a Builder to fix it.

The opportunity cost

Without a Chief Revenue Officer, the probability of making the quarterly number greatly declines. The risk is a month-to-month slip in revenue attainment, and the losses compound every month between the loss of the old leader and the hiring of the new one.

When your sales and marketing operation is broken, you need a builder to fix it. When your sales and marketing operation is optimized, you need a runner to keep it going.

— Dan Bernoske, CEO and Founder, Cortado Group

With growing levels of capital flowing into PE firms, fund managers know the stakes have never been higher. Executive search experts describe C-Level hiring as "fiercely competitive" and "incredibly challenging": every desirable C-Level Leader is fielding multiple offers and can be picky. A GTM operation cannot sit idle while a PE firm searches — an Interim C-Leader fills the gap, rebuilds the operation into a revenue-generating machine, then hands over the keys when a permanent C-Leader steps in.

What the experts say

• “The pace should remain vigorous as long as the deal environment holds up, and limited partners will be challenged to manage a dizzying array of opportunities.” — PE Hub
• “Looking ahead, PE firms anticipate that limited partners will continue to invest heavily in PE strategies and estimate that at least $952 billion will be raised by PE funds.” — Cassels
• “The recovery in business investment and continued improvement in labor productivity suggests the underlying dynamics of real economic growth are reassuringly robust.” — J.P. Morgan
• “There will be fierce competition for tech deals. While PE firms have been upping their exposure to tech for years, the pandemic lit a fire under PE investments in this space.” — Morrison Foerster
• “Private equity deal-making and fundraising is expected to continue apace, although mid-market managers are mindful of high valuations and inflationary pressures as they deploy record amounts of cash.” — S&P Global
• “To thrive in the next wave of private equity, firms must reimagine business strategies and operating models.” — EY
• “Hiring is fiercely competitive and incredibly challenging. Every desirable C-Level Leader is fielding multiple offers and can be picky in their decision process.” — Hunt Scanlon Media

Interim C-Leader engagements are designed with a minimum three to four month duration — the minimum time required to make meaningful changes to a GTM organization. Over their term, Interim C-Leaders drive two parallel paths: building a best-in-class GTM engine and managing the team to deliver results, executed across four sprints with an optional fifth phase of ongoing support.

What Interim C-Level Leaders launch and manage

• Finding and fixing performance gaps in the current operation
• Transforming sales and marketing organizations to meet evolving customer demands
• Rapidly filling critical sales and marketing positions with A-Player talent
• Extracting (and acting upon) critical insights from organizational data
• Opening up wider distribution channels and new market opportunities
• Increasing operational efficiency by getting more from the existing teams
• Transferring the new knowledge and best practices to the permanent GTM Leader

Interim CSO initiatives

1. Sales strategy

   Create growth & retention strategy and find new routes to market
2. Sales team

   Design the sales organization structure and create the right team with the right talent and coaching
3. Sales playbook

   Target opportunities and deploy sales plays and deal strategies
4. Sales execution

   Establish predictive pipeline metrics and targets to support complex sales plays and deals

Interim CMO initiatives

1. Marketing strategy

   Build a brand & campaign strategy supported by the right budget
2. Marketing team

   Build the most effective team by hiring the right talent and providing training and coaching
3. Sales support

   Execute the product marketing launch plan
4. Campaign execution

   Oversee development of marketing campaign and lead management

Interim CROs tackle everything on both lists.

1. 1
   C-Level experience

   Real-world experience executing high-level initiatives in the field, within the company's industry and operational scale, plus a deep understanding of the PE environment and how to work with a Board.
2. 2
   Data driven

   Without keen, real-time insight, companies cannot make informed decisions. Data-driven organizations understand everything from budgets to forecasts to operating plans.
3. 3
   Digital change expert

   Companies need a tech stack that supports their digital direction and a C-Level Leader who understands exactly how to execute the transformation.
4. 4
   Visionary

   The ability to see two steps ahead in every critical area, including steps that seem high risk to others but are essential to meeting goals.
5. 5
   Execution-focused

   Vision is not enough. You need someone willing and able to get things done, skilled at overcoming organizational inertia and avoiding distractions.
6. 6
   Growth marketer

   Innovative and growth focused on acquisition, engagement, and retention, backed by advanced analytics and robust data rather than flying blind.
7. 7
   Customer champion

   Keeping customers front and center with buyer personas and ideal customer profiles, then designing sales and marketing strategies that deliver maximum impact.

We take a hard look at an organization, find what's missing, and put the right pieces in place. We break glass when necessary.

— John Auer, Managing Partner

SaaS company receives offers $27M higher with 6:1 multiples

A SaaS company wanted to exit in 12 to 18 months, but its revenue growth had stalled. An initial offer from a strategic buyer came in at a 3:1 multiple on earnings, much lower than market rates. The company was struggling with misaligned sales and marketing teams, a poor hiring process, an SDR team performing at one-fifth the benchmark level, a low 16% win rate, no revenue-building strategy, and a lack of clear KPIs.

Industrial equipment manufacturer reaches $1.5B valuation

The company needed to maintain a 15% CAGR to hit its growth target of $1 billion in revenue over five years. After several booking misses, another miss would jeopardize its objective and future valuation. A Cortado Group I-CRO created a new territory sales model based on potential spend and workload capacity; identified, prioritized, and assigned the highest-potential accounts to the best sales resources; and calculated revenue potential by account and solution across all sales channels.

Healthcare technology leader gains a 78% increase across all businesses

A Cortado Group I-CRO transitioned the GTM model to solution selling, restructured the sales organization and compensation plans, launched persona-based nurturing campaigns, and integrated HubSpot with Salesforce to optimize lead management.

Real estate software firm gains 10.7% sales growth

A Cortado Group I-CMO identified churn risk account by account, redesigned territories, compensation, and quotas, built a central BI dashboard, sharpened segmentation and pricing, and incentivized comp plans into multi-year deals.

Fire protection and life safety company gains 14.3% revenue growth

A commercial fire protection and life safety company lacked a stable and predictable source of revenue growth. It hired a Cortado Group I-CRO to build a new sales and marketing GTM strategy while it conducted a broad search for a new permanent sales leader. The I-CRO created a multi-pronged marketing approach including social media, paid ads, and campaigns; hired a GTM team of industry experts and tenured sales professionals; built rigor around CRM to create predictable revenue projections; customized a five-step process for opportunity management; and introduced a coaching cadence.

Cybersecurity company doubles lead funnel conversions

After the head of marketing left, challenges mounted: three CEO and two CRO changes, the sudden resignation of the SDR manager, and a marketing department of just three employees. A Cortado Group I-CMO launched a new corporate identity and brand messaging, removed under-performing agencies, implemented lead scoring and weekly nurture campaigns, and restructured sales pricing and territories.