Software Development, Sales, and Services Company
Background: Retained by the CEO of this private equity backed, but capital constrained rapidly growing IT company to provide general and financial management services and advice during a period of organic growth and growth via a couple of small strategic acquisitions. The company was operating under break even cash flow conditions and had to scramble to meet payroll and other obligations and did not have self generated cash flow for software development and marketing programs. It was a second / third try orphan in a fully invested fund. With limited resources the client needed to acquire related technology and products in order to survive product competition, so acquisitions were structured using earn out and equity formats. Re marketing and sales, a target market penetration strategy was recommended. A small set of segmented target markets were selected based on the client's product's ability to satisfy key purchase drivers / customer needs. Direct sales using commissioned salespersons aligned sale costs with revenue. Monthly services were tailored to meet changing needs. Annual revenues grew to the $4 million level.
General management services included:
Assisted CEO and board member with sale of company.
Results: Revenues doubled. Company sold to a strategic buyer introduced by private equity sponsor using asset sale format and paid with acquiring company debt.