The Marketing Due Diligence Checklist for Private Equity Firms

When private equity groups evaluate acquisition targets, operational and financial diligence often dominate the spotlight. But in today’s growth-focused environment, marketing due diligence is just as critical. A weak brand, unclear positioning, or bloated CAC (Customer Acquisition Cost) can quietly undermine scalability—even in businesses with strong balance sheets.

This article outlines a comprehensive marketing due diligence checklist tailored for private equity firms and portfolio management teams. With support from a fractional CMO, PE investors can uncover hidden risks, spot underutilized channels, and build strategic marketing blueprints for accelerated growth post-close.

✅ 1. Brand Positioning and Differentiation

• Does the company have a clear, compelling brand story?

• Is their positioning relevant and differentiated from competitors?

• Are their values, messaging, and visual identity consistent?

🔎 Red Flag: Brand appears outdated or generic across channels—signals low customer loyalty or weak awareness.

✅ 2. Customer Acquisition & Marketing Funnel Efficiency

• What is the cost per lead (CPL), customer acquisition cost (CAC), and customer lifetime value (LTV)?

• Which channels (organic, paid, referral, outbound) are performing?

• Is there attribution tracking in place across the funnel?

📉 Watch for: High CAC with unclear attribution, or overreliance on one channel (e.g., paid search or founder referrals).

✅ 3. Digital Infrastructure

• Are website and CRM systems integrated with sales and marketing automation?

• Is the site SEO optimized with measurable traffic trends?

• Are analytics and KPIs monitored in real time?

⚠️ Gaps here often signal scale constraints post-acquisition.

✅ 4. Team & Capability Assessment

• Is there an in-house marketing leader, or is execution fully outsourced?

• Are current teams equipped to scale marketing with PE growth targets?

• Is there leadership capable of building a long-term marketing strategy?

🤝 This is where a fractional CMO often delivers high ROI—bridging leadership without full-time overhead.

✅ 5. Competitor Landscape and Share of Voice

• How does the brand rank in search, social, and market visibility?

• Are they clearly outperforming—or lagging behind—key competitors?

• Are there untapped customer segments or markets?

📊 Use tools like SEMrush, SimilarWeb, and social listening to map visibility.

✅ 6. Customer Sentiment & Retention

• Are reviews, NPS scores, or customer surveys positive and actionable?

• Is churn increasing, and why?

• Are there referral or upsell programs in place?

💬 Customers can be your best marketing channel—or your loudest warning sign.

Why PE Firms Are Partnering with Fractional CMOs

Many middle-market companies operate with underdeveloped marketing functions—often just a junior team or agency patchwork. A fractional CMO brings immediate executive-level leadership, performs high-ROI marketing audits, and builds 90-day post-close marketing plans aligned with your investment thesis.

📥 Download Our Free Marketing Due Diligence Template

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