For years, trade shows, sponsorships, and events were a staple in most companies’ marketing mix—a given, a must-attend, a no-brainer. But times have changed. In today’s hyper-measurable, data-driven business environment, companies, especially those backed by private equity (PE) firms, are under mounting pressure to justify every dollar spent. Gone are the days of sponsoring and attending events simply because “we always have.” Now more than ever, it’s all about the return on investment (ROI), and if the numbers don’t add up, the budget gets cut—fast. For association executives and organizers, understanding these challenges is crucial. If you rely on revenue from exhibitors and sponsors, you must speak their language. You need to grasp why these companies may be hesitant, even if they have previously attended or sponsored. You need to realize why and how their budgets are scrutinized like never before, and what you can do to make your event indispensable. Your team needs to be adequately prepared to answer the question, “How would you dearly articulate the value and justify your event if you were in my shoes presenting this to my executives?” Why Private Equity-Backed Companies Are Different Private equity firms have one goal: maximize value. Whether they own a company outright or hold a significant stake, they focus on financial performance, efficiency, and an exit strategy. Unlike traditional privately held or publicly traded companies that may prioritize long-term brand building and customer relationships, PE-backed firms are driven by metrics that yield direct, quantifiable returns. And therein lies the challenge of justifying trade shows and event sponsorships. The ROI Question: Metrics or Myth? The problem with many trade shows and sponsorships is that their ROI can be challenging to measure. Sure, anecdotal evidence suggests face-to-face meetings lead to stronger business relationships, and brand visibility helps with credibility—but PE firms don’t make decisions based on “gut feel.” They want hard numbers, and many trade show investments fail to deliver clean, linear metrics aligning with PE-backed companies’ operations. To understand why PE-backed firms are skeptical about trade show investments, it’s important to consider the specific challenges they face when evaluating ROI. Long Sales Cycles: While a few “order writing” shows exist, most B2B companies, especially in complex industries, have sales cycles that stretch months (or even years). Trade shows might play a role in closing a deal or connecting with current and prospective clients, but attributing revenue directly to an event is tricky. High Costs vs. Uncertain Returns: Rising booth space and travel costs, sponsorships, activations, swag—it all adds up. If a company can’t prove that $75K in trade show spending leads to at least $75K in new business (potentially defined in a short-term window), they will likely cut your event. Some PE firms expect a marketing multiplier on ROMI (return on marketing investment) of 2-3 times. Lifetime Time Value (LTV) to Customer Acquisition Costs (CAC): PE-backed companies evaluate the cost of acquiring a customer compared to their lifetime value. Marketing spending on events, conferences, and trade shows can inflate that number drastically compared to other marketing methods, causing further pause for companies to evaluate their marketing spend mix carefully. Lead Quality Over Quantity: Collecting hundreds of business cards or badge scans is one thing; converting those leads into paying customers is another. Participation feels like a gamble if event organizers don’t help exhibitors connect with the right buyers. Not being able to easily collect lead data can be another deterrent to participation. Attendee Data and Lists: GDPR, regulations, and association-specific rules often prevent the distribution of attendee lists. Companies need opt-in lists to determine whether qualified buyers are attending your event. The Sponsorship Struggle: Justifying “Soft ROI” Sponsorships are another area where PE-backed companies hesitate. A logo on a lanyard, a sponsored coffee break, or a branded session backdrop might offer visibility, but how do they translate into real business? Unlike direct advertising with click-through rates and conversion tracking, sponsorship ROI is elusive. If a PE firm sees an opportunity to reallocate those dollars into digital campaigns with precise tracking, guess where the money goes? What Association Event Organizers Can Do to Address These Concerns So, how can associations help justify the investment for these skeptical, numbers-driven companies? The key lies in evolving how trade shows and sponsorships are positioned and measured. Offer More Data-Driven Insights: Companies need more than attendance figures and demographics; they need actionable insights. Consider offering exhibitors post-show analytics on attendee engagement, lead scoring, and matchmaking to connect them with the right buyers. The more data you provide, the easier it is for companies to justify returning. Facilitate Better Networking and Lead Qualification: Instead of just offering badge scans, help exhibitors pre-qualify leads through attendee profiles, meeting scheduling tools, and AI-powered matchmaking. The more targeted their interactions, the better their ROI. Create Tiered Sponsorships with Tangible Benefits: Rethink sponsorships beyond traditional branding. Instead of a logo on a banner, offer sponsors access to exclusive attendee data, VIP networking opportunities, or thought leadership opportunities with measurable engagement metrics. Help Tie Event Participation to the Sales Funnel: Work with exhibitors to remind them how to integrate trade show leads into their CRM, track engagement post-event, and attribute revenue back to event participation. The closer you can show a direct line from the trade show to the closed deal, the better. Listen and Follow-Up: Listening to each of our companies’ particular needs is critical to delivering the metrics they need to measure their success. Follow up with companies to understand if they met their goals and what you can do to help further. The Future: Less “Expense,” More “Investment” In reality, trade shows and sponsorships aren’t going away but are evolving. PE-backed companies will continue to scrutinize their spending, but association organizers who adapt by offering better measurement tools, clearer ROI metrics, and more strategic opportunities will be in the best position to retain and grow participation. It’s not that PE-backed companies don’t see value in trade shows; they need to see value differently. The conversation changes if your event can move from being perceived as an expense to being seen as an investment. The challenge is clear: Can you prove your event’s ROI in a way that resonates with PE decision-makers? As association leaders, you have a unique opportunity to bridge the gap between traditional event marketing and the data-driven demands of private equity. Will you adapt and innovate—or risk being left behind? Because one thing is certain: If you can’t make the case, PE-backed companies will find somewhere else to put their marketing dollars.   Don’t miss any event-related news: Sign up for our weekly e-newsletter HERE, listen to our latest podcast HERE and engage with us on LinkedIn!