CASE STUDY
Middle-Market HCM SaaS Platform
Leading the integration process of two HCM Software providers, creating a combined entity that resulted in a strategic exit.
Challenge
Combining forces to improve competitive position
The goal of the engagement was to improve the company's competitive position by extending its existing payroll platform to a broader HCM offering that would include Onboarding, Employee Engagement, Performance Management, Learning Management, and Applicant Tracking.
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Extending the offering and positioning the company as a mid-market HCM provider opened up both white space and greenfield opportunities for growth while also expanding exit options.
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Before we could capitalize on the possibilities of this merger plan we had to address strategic operational and organizational challenges in the business:
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Integrating two vastly different technology platforms that supported unique customer value propositions and ICPs.
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Repackaging and repositioning the product and aligning the roadmap and development resources accordingly.
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Redefining the customer experience to reduce costs and gain efficiencies, including improving the implementation and support processes.
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Combining two completely different cultures with a focus on improving engagement and retention.
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Evaluating and aligning go-to-market teams and plans in order to minimize negative impact on revenue.
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With our team of operational leaders, we took a multi-faceted approach that focused on the successful integration of technology, product strategy, customer experience, culture, communications, and go-to-market strategy.
Solution
Deep operational experience drove rapid return on
investment goals
Technology
Delivering a combined product platform that would contribute to market expansion and innovation potential was critical to synergy realization. We helped the investor find the right partner prior to the due diligence process. Once the acquisition was complete, we phased into the technology integration.
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Product Strategy
During the merger and acquisition process, we integrated the offerings and created packages that aligned with market needs. We also created a solid product roadmap for the new growth platform, setting a clear direction for the newly formed entity.
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Customer Experience
As the platform and product strategies evolved, it was critical to align the customer experience to a more structured, packaged approach that would reduce costs and gain efficiencies, while removing duplication of effort.
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Culture & Communication
Properly integrating two distinct corporate cultures during the acquisition was a key factor in mitigating risk and ultimately achieving the goals set forth in the investment thesis.
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Go-to-Market
The go-to-market strategy was an important function to address early in the integration process to avoid a negative impact on revenue. There were four areas of focus - sales & marketing teams, market position/brand, marketing plan and activities, and the tech stack.
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Results
Realizing investment goals
The goals of the investment thesis were realized as the two organizations were successfully merged.
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Created a profitable foundation for growth resulting in a
$6M+ EBITDA improvement in 24 months. -
Executed platform investments that Improved customer retention by 51%.
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Created aligned Customer Success strategy improving customer health by 40% and reducing ticket volume by
more than 20%. -
Led the IMO through successful acquisition, on time, and meeting desired goals.
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Honed culture of engagement and improved employee engagement scores while driving radical change.
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Launched an online client communication center enabling agile transformation messaging.