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Blue Ridge Partners

Quality of Revenue (QoR)

What is QoR?

Blue Ridge Partners offers Quality of Revenue (QoR) Diligence, a fact-based forecast of a company’s revenue performance. QoR provides PE firms a comprehensive approach to go-to-market and pricing due diligence that delivers:

  • Greater conviction in bidding
  • Faster start to organic growth acceleration
  • Mitigation of downside surprises
  • Earlier successful exits and higher DPI

The most proactive and exit-focused PE firms prioritize growth early. They evaluate a target’s QoR alongside its QoE and market context.

Strong Pricing Results Persist for Software Companies in 2024

QoR Deliverables

In today’s competitive PE landscape, comprehensive Quality of Revenue diligence is no longer a luxury; it’s a necessity.

Comprehensive review of the target’s go-to-market model and pricing against Blue Ridge’s proven frameworks

3-year revenue forecast model incorporating key growth drivers to develop an independent base and upside case

Recommendations for commercial improvements and roadmap for execution to achieve early alignment with management and start prepping for Exit from Day 1

In the Detail of Sales Execution, “How” Matters
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Understanding QoR

Sit down with the Head of the Quality of Revenue Practice at Blue Ridge Partners, Chris Madaus, to learn more about how QoR can enable stronger deal conviction, more winning bids, and actionable post-close roadmaps that accelerate growth and drive higher DPI.

Key Components

The Key Components of QoR

QoR’s key components include a 16-point GTM and pricing analysis, targeted interviews, a digital marketing assessment and pricing survey, and a single 90-minute CRO interview.

Blue Ridge spends over 500 hours analyzing go-to-market and pricing issues during QoR diligence.

Deliverables

Deliverables that Drive Value

Investors want actionable insights about a target’s revenue generation capabilities, not just analytics. QoR drives IC-ready insights on valuation and growth through its targeted deliverables: independent revenue forecast, detailed revenue engine assessment, and an actionable growth roadmap — providing a platform for early alignment with management.

Value for Investors

QoR’s Value for Investors

QoR drives greater conviction in bids, reduces downside surprises, and sets up faster organic growth. The clarity QoR provides on key growth levers set up PE firms for earlier exits.

Overcoming Diligence Barriers

Why isn’t QoR always prioritized?

Investors worry about limited data and time constraints when considering GTM and pricing during diligence. However, QoR’s targeted focus overcomes these barriers.

QoR vs. QoE and Market Diligence

What is the difference between QoR and other diligence efforts?

QoR complements QoE and market diligence. It is a missing piece that answers the question, “Does the Target have the commercial capabilities to execute, and actually hit the revenue projections critical to the investment thesis?”

QoR’s Proven Framework

The Proven Framework Behind QoR

Blue Ridge Partners’ QoR Methodology is informed by over 1300 projects for PE Firms and over 100 diligence engagements. Blue Ridge combines a strategic mindset honed by MBB backgrounds with deep GTM and pricing expertise, uniquely positioning Blue Ridge to deliver QoR during diligence’s compressed time frames and data limitations.

QoR’s Strategic Impact

QoR’s Strategic Impact

QoR shapes growth strategy post-close by identifying growth drivers early, transforming diligence from a necessity to a competitive advantage.

Begin Your QoR Diligence With Blue Ridge Partners

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Case Studies

We typically identify multiple points of growth rate adjustments during diligence that we know how to capture post-close.
What does this looks like in practice? Register to receive a copy of our latest Quality of Revenue Case Study.

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Understanding Quality of Revenue

The Blind Spot in PE Due Diligence

Register to receive a digital copy of our briefing that lays out the case for QoR in PE due diligence.

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Our impact

What Over 1,300 Clients and 130 PE Firms Say About Us

“Blue Ridge Partners focused on delivering tangible results, not just reports. They work on ‘the how’ not just ‘the what’.”

“QoR diligence has made a big difference in our underwriting and time to sale by accelerating improvements at companies we own.”

“The seasoned industry veterans in our company, who were originally skeptical, were quickly won over by your fact-based approach and are now the biggest champions.”

“Unlike anyone we’ve worked with before, the Blue Ridge team worked side-by-side with our management team to implement our growth strategy.”