Case Study.

Integrated private companies which reduced turnover and grew profitability.

The Problem

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: 

  • Drastic misalignment between the board, investors, CEO and the management team led to an uneven vision, strategy and general roadmap.
  • The goals, metrics and KPIs that the staff was held accountable for did not drive the strategic plan; in part due to inconsistencies in the plan as well as insufficient operational knowledge. 
  • General operational knowledge and processes were insufficient. Despite good content, tech and a go-to-market engine, their system didn’t create a clear hand-off from sales to operations and delivery.
  • Too many key staff held unique organizational knowledge. If key staff left, the company could not recover. 
  • Product pricing strategy was based on a non-recurring revenue subscription, which boosted short-term gains, but lacked long-term sustainability.
  • No clear understanding of who all customers were, what they wanted and how they used their products, as well as a lack of strategy around building customer success. 
The Team
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Background

The Outcome

The company reduced turnover, customer complaints and grew EBITDA by 300%.

The Partnership



The Solution

Orchid Black operators created a plan and executed on the following:

  • Built new technology platforms to increase margins
  • Re-organized company to provide emphasis on
  • Project management and customer experience

    The team also:

    - Implemented new business system to automate the workflow and create efficiencies

    - Acquired and integrated two companies into the operations

    - Managed negotiation and due diligence.

The Challenge

To integrate this company into the parent company who had just bought them. The company was a privately held company for 45 years, with lack of structure and systems.

Integrating Private Companies, Increasing Profitability
The Results



Testimonial

"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


This project embodies the archetype of an organization built by a brilliant, visionary founder who has a good product, then builds a successful company as large as he possibly can. However, like most great founders, he eventually hit a wall and needed to bring on a growth partner to make a decision on where to go next. The Orchid Black team was the perfect complement to help take this company to the next level, increase the value of the business, and exit quickly.
––Jim Barnish, Managing Partner, Orchid Black