A fintech firm initially brought in Orchid Black to evaluate a potential transaction and to perform a Value Creation Assessment (VCA) with the goal of identifying areas of opportunity and provide an estimated valuation in the marketplace.
After performing the VCA, which included reviewing company data, conducting market research, and holding internal and external interviews with stakeholders, Orchid Black quickly identified massive opportunities for growth, but certain factors were inhibiting the organization’s ability to grow.
Key factors included:
- 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 buyerThe 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.
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:
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.
"Orchid Black was able to come up with phenomenal insights in a matter of weeks just by analyzing the data that was already within our own company. That alone was worth every penny of the VCA (Value Creation Assessment)."
-CEO & Founder, fintech company