Don't Ignore Organic Growth in Favor of Inorganic Growth with John Wernz, Great Hill Partners (Ep.8)
Summary:
Is your firm too focused on acquisitions while neglecting the power of organic growth?
In this episode of Don’t Do That, host Kelly Waltrich welcomes John Wernz, a “reformed CMO” who now works with private equity firm Great Hill Partners as an Entrepreneur in Residence. Together, they explore a common pitfall in the financial advisory industry: prioritizing acquisitions and inorganic growth at the expense of developing strong organic growth capabilities. John shares insights from his experience working with firms looking to grow organically and sitting on several industry boards, offering a valuable perspective on balancing growth strategies.
Kelly and John discuss:
0:32 John’s current role as Entrepreneur in Residence at Great Hill Partners
1:56 The persistent problem of firms skipping foundational marketing and jumping straight to advanced strategies
4:09 Indicators that show a firm is ready for organic growth investment
5:02 The most common successful marketing channels for advisory firms
6:13 Realistic marketing budgets for firms (minimum $50-100K for foundational work)
8:16 The often-overlooked “soft costs” of implementing marketing strategies
9:20 The importance of having firm leadership involved in marketing efforts
10:03 Why both John and Kelly appreciate working with empowered marketing roles
13:21 John’s “Don’t Do That”: Getting caught up in inorganic growth at the expense of organic growth
15:26 Why some firms rush to acquisitions before establishing their core marketing
16:38 How to determine if your firm is ready for M&A activity
19:22 The need to have a defined marketing playbook before pursuing acquisitions
20:18 Why an acquisition integration plan must include organic growth targets
22:06 The benefits of applying recruitment marketing principles to M&A
26:25 Final advice: Don’t get seduced by spreadsheet math – ensure operational and marketing readiness before pursuing acquisitions
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About Our Guest:
With over 25 years of experience in leading and transforming marketing and growth strategies for various businesses, John is currently an Executive in Residence at Great Hill Partners, a private equity firm that invests in high-growth companies in the financial services, technology, consumer, and healthcare sectors. John leverages his expertise in B2C, B2B, B2B2C, AdTech, Programmatic Marketing, Demand Generation, Direct Marketing, Brand Marketing, Digital Marketing, Social Media, Integrated Marketing, Team Building, Media, P&L Management, Database Marketing, Interactive / Web Marketing, Business Development, Enterprise Modeling, Organizational Restructuring, Product Management, Product Marketing, Product Development, Advertising & Promotions, Speaker & Presenter, Research & Analysis, and Public Relations to support the portfolio companies and drive organic growth.
As a board director, advisor, investor, and executive, John has been recognized as a trusted, influential, and collaborative executive team and board member, and a thought leader in the marketing industry. He has contributed to the success of startups and Fortune 500 companies, such as Wealth Enhancement Group, Cogo Labs, and Marketing Architects. John’s mission is to use marketing as a growth engine to support meaningful causes and create positive social impact. He is also passionate about supporting non-profit organizations that make a difference in the lives of children, veterans, and communities.