Global Software Company-SaaS and creating the platform for sale

Situation and Challenge

  • PE  software house appointment : Remit- reverse the value trends loss since acquisition including a plan to out perform vs. adverse market headwinds
  • Investigate why the “Strategic and Operational messages” weren’t transmitting from board to individual
  • Revisit remuneration structures and align with value improvement
  • Establish a robust and accurate financial profile of the business which resonated with like companies and market comparators
  • Set clear reporting for ;recurring revenue analysis, SaaS metrics and productivity across the worldwide offices for every hour deployed, every customers profit and every countries contribution
  • Clarify and maximize the groups treasury and tax positions globally
  • Capitalize on growth opportunities and improve overall yield.
  • Create a sense of “one business” from of a large group of acquired small companies
  • Effect a refinancing on best terms [UK/ European or US market sourced]
  • Prepare for sale and effect/execute

Approach

  • Work very closely with the executive team and sponsor in diagnosing the business value levers
  • Agree the diagnosis, approach and timescale/resources with the PE chairman and CEO of the business in the first 6-8 weeks
  • Develop a 5 year operating plan which under-pined the growth and profit improvement plan for the business across all overseas territories
  • Share this plan appropriately which could be embedded into annual objectives, appraisals and easily measured
  • Revisit and reset the remuneration structures to redirect attention from short term gains and commissions yields to long term value enhancers whilst maximizing employee engagement

Method

  • SaaS consultants brought in to draw out the MIS/efficiency management framework
  • Recruit new team members with the requisite skills to build the best SaaS dashboard of any SaaS company
  • Engage as widely as possible to gather information on governance and value losses extending to a full contract review of the entire company customer base
  • Make difficult decisions on the engagements which were value losers long term, invest in value gainers and secure PE/CEO approval for this customer re focus
  • Improve the evidential basis of all board and senior management decision making by redesigning the board packs, MIS packs and profitability dashboards, including building the engines behind them

Outcomes

  • Software business “watermark high” EBITDA multiple secured to underpin up coming sale process
  • Predictability, reliability and visibility of MIS transformed
  • In turn profitability increased on same revenues by >70% in three years
  • Refinancing returned funds to PE and shareholders improving overall yield to investors
  • Business sold as per plan releasing the remaining investment and putting the investment back to acceptable yield levels
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