We are a technology advisory firm that bridges the gap between investors and their portfolio firms. We ensure both parties can derive the most value from their technology investments.
In one of our recent engagements, an investor expressed interest in a management buyout of a tech-enabled firm. With a decade-long operation and an impressive client base in a rapidly evolving market, the company in question represented a lucrative opportunity. However, we identified a significant challenge during the technology due diligence assessment.
The technology was monolithic and inefficient. Meaning significant headcount increases to service the projected growth plans.
IDENTIFYING THE CHALLENGE
The first step was to sensitively communicate the situation to both parties. We needed to strike a delicate balance – recognising the accomplishments of the existing team while highlighting the necessity for additional investment to ensure relevance and longevity.
BUILDING THE TECHNOLOGY STRATEGY
Once all parties acknowledged the situation, we assisted the management in formulating a new technology strategy, complete with costs and benefits. This process included creating a new product roadmap, a re-forecast of the financial plan, and an exhaustive technology architecture review to assess the ‘as-is’ and ‘to-be’ states.
We also coached the management team to present this complex information in an engaging, non-technical manner, focusing on the business benefits. Notably, during this phase, we identified a substantial increase in technology spending, which was comfortably offset by the projected growth and savings.
EXECUTING THE DEAL AND COACHING
Armed with this comprehensive information, both parties proceeded with the deal, fully aware of the implications. We provided CTO coaching, ensuring the team communicated effectively to the new board and they adapted to a faster pace.
STRATEGIC OVERSIGHT AND IMPLEMENTATION
Over the next 18 months, we provided strategic oversight to the board, working closely with business stakeholders to ensure the new product was developed as per the users’ requirements. We also kept a keen eye on risks and opportunities, ensuring all aspects were properly highlighted and addressed.
Our end-to-end engagement with the firm, from acknowledging the need to re-platform to helping them hire new staff and engineer a new product, enabled the company to transform its technology base and align it with business needs. This process not only facilitated the successful management buyout but also positioned the company for sustainable growth, thus validating our role as a technology advisor that facilitates value creation.