Insights from Summer Craig on Private Equity and Value Creation: The Deal Scout Podcast
In a recent episode of The Deal Scout podcast, host Josh Wilson talked with Summer Craig about value creation in private equity-backed portfolio companies. Here are some highlights:
Catalyst for Growth: The Mission of Craig Group
At the heart of Craig Group’s mission is a commitment to supporting portfolio companies, particularly those backed by private equity firms. The firm specializes in facilitating growth shifts for clients who have recently undergone acquisitions, addressing a crucial gap in the market. Many middle-market companies often lack the resources and expertise to develop effective growth strategies tied to their financial performance, and that’s where Craig Group steps in.
Craig Group’s approach centers on aligning marketing and sales efforts with the financial goals of its clients. By bridging the divide between creative marketing and financial objectives, the firm ensures that every team member understands how their work contributes to driving EBITDA growth. This alignment not only enhances overall performance but also fosters a culture of accountability and strategic thinking.
A driving force behind Craig Group’s growth has been Libby Covington, a partner who joined the firm a year after its founding. Summer and Libby lead the firm collaboratively, each bringing their unique strengths to the table.
A Unique Perspective on Private Equity
Summer talked about her early career at HomeAway, which was backed by Austin Ventures and ultimately went public. This experience sparked her interest in private equity. When she founded Craig Group five years ago, her first client was a PE-backed company, solidifying her focus on this niche.
This unique positioning has allowed Craig Group to carve out a space in the industry where they provide essential services that bridge growth strategies with ROI reporting, something that was notably lacking in the market.
Aligning Marketing Strategies with Financial Goals
There is a common disconnect between marketing professionals and financial teams. Summer and Josh talked about how marketing efforts are often misaligned with overarching financial goals, like EBITDA. Summer delved into how Craig Group addresses this issue: beginning engagements by analyzing clients’ financial data, particularly past performance, and aligning it with sales forecasts.
This data-driven approach ensures that even creative roles within the company understand the ultimate goal of driving financial success. Summer emphasizes that marketing and sales are not separate entities; rather, they form a continuum that, when aligned, can propel revenue growth. Craig Group’s team training focuses on ensuring every member understands the connection between their role and the company’s financial objectives.
Educating Boards on Strategic Marketing Channels
Summer addressed the overall challenge of educating CFOs and boards about the importance of diverse marketing channels. She stressed the need to first define business goals in relation to marketing efforts before diving into specific platforms. By emphasizing consumer behavior and the strategic reasons for using particular channels, Craig Group helps boards see the broader picture rather than getting caught up in the latest marketing trends.
Summer’s approach encourages a focus on the “why” behind marketing decisions, ensuring that all strategies align with the company’s core objectives and consumer journey.
Navigating Challenges and Embracing Feedback
A strong feedback culture is the backbone of Craig Group. Regularly soliciting input from clients has helped Summer identify areas of success and area for improvement. She acknowledges that one of the most challenging aspects of running a business has been learning to say no to clients that don’t align with the firm’s core strengths. This dedication to focus has proven essential for long-term growth, allowing Craig Group to lean into their expertise.
A Passion for Problem-Solving
When asked about what brings her the most joy in her work, Summer zeroed in on the problem-solving process that comes with new client engagements. She loves the initial discovery sessions, listening to CEOs’ challenges and using her team’s expertise to provide innovative solutions.
However, she acknowledges that managing the financial aspects of the business, like billing and accounting, while important to the business, are not as enjoyable to her. Recognizing this early on, Summer hired a trusted team to handle those elements, allowing her to focus on growing businesses and solving complex problems.
Overcoming Gender Barriers in Private Equity
As a female leader in a predominantly male-dominated industry, Summer reflects on the challenges she faces in private equity. While progress has been made, there remains a significant underrepresentation of women in senior roles. Summer emphasizes the importance of earning trust, regardless of gender.
Summer and her team prioritize building credibility through public speaking and personal interactions. Despite the hurdles, the firm remains steadfast in its commitment to overcoming obstacles and focuses on working hard while engaging only with those who value their expertise.
Listen to the conversation on your favorite Podcast platforms:
Need help with your GTM strategy? Craig Group is a revenue growth advisor for middle-market, private-equity-backed portfolio companies.