A boutique human capital management vendor was struggling to increase organic growth. Working with Orchid Black operators, the company was able to achieve desired growth objectives, leading to a successful exit at a higher-than-expected valuation.
While the company had an established presence as a leading vendor in the HCM market, they were experiencing a growth roadblock. Revenue performance was lagging, while company leadership struggled to innovate IT infrastructure at a time when competitors had already made the transition to the cloud. Growing revenue and shedding unnecessary costs were the crucial final steps of an exit strategy, and these were the core objectives guiding Orchid Black operators.
In order to hit performance targets, the HCM vendor had to find unique ways to evolve their model and capture more revenue. This meant looking squarely at the root cause of operational inefficiencies. For this company, roadblocks to growth were rooted in poorly aligned messaging, and underutilization of cloud infrastructure to help cut costs and improve efficiency.
Having identified the roadblocks, Orchid Black operators deployed mission-critical solutions in the following areas:
- Drove 100% year-over-year revenue and profitability increase
- Developed new businesses initiatives to improve company valuation
- New methodologies for sales, pre-sale, solutions and delivery resulted in a 25% in gross margins
- Led successful sale to a private buyer
The effectiveness of these initiatives was quickly evident. Impressive revenue growth, powered by improved organizational design, produced the outcomes needed to take the final step in the company’s exit strategy.