In 2015, a medium-sized provider of software-as-a-service solutions (SaaS) acquired a company specializing in software solutions for hazardous materials and dangerous goods compliance for brick-and-mortar and online retailers. The acquisition was intended to expand the buyer's cloud solution portfolio and open up new sales potential through cross-selling and upselling.
As a senior sales manager, the current interim manager was entrusted with the post-merger integration of the company. The acquired company was to be integrated into the client's existing organization as a sustainably profitable business unit in terms of technology, sales and personnel.
Value proposition adapted to the buyer's target groups
The acquired company was focused on a very specific market niche. It dealt with SaaS solutions for assessing the regulatory compliance of hazardous substances and dangerous goods-relevant product ranges (e.g. in accordance with the REACH regulation) such as paints, pesticides and cleaning agents.
Thus, one challenge was to adapt the previous value proposition to the needs of the new owner's target groups (retail, consumer goods, DIY, eCommerce). In addition, the entire technical infrastructure of the acquired company was operated by an external service provider, which was detrimental to both profit margins and the transfer of expertise.
Validating the value proposition and creating a business case
In order to validate the value proposition, the interim manager first conducted expert interviews with customers and product management employees. He created a storyboard for marketing (buyer/persona, value proposition, pricing, etc.) with employees from sales and marketing.
Together with sales and controlling, the interim manager also developed a new, sustainably profitable business model for marketing the solution portfolio (prices, structure of compliance services) and a business case for expanding the acquiring company's cloud portfolio.
Successful migration of the technology to the in-house platform
Migrating the technology to the buyer's IT architecture and process landscape was a particular challenge. Together with internal and external specialists, the interim manager developed a solution with which the new SaaS solution could be integrated into the buyer's technology platform. This also included migrating the data from the previous external service provider.
In order to ensure the smooth operation of the new product, the interim manager set up a powerful helpdesk and efficient back office services. To this end, he initially recruited two dangerous goods managers. He later expanded the team to include five more employees.
New product increases turnover while optimizing cash flow
The new service went live on time and successfully on the client's technology platform. Despite the special right of termination following the acquisition, all customers signed the client's new contracts and SLAs, which the interim manager had drawn up with the legal department. Thanks to the modified payment terms in the new contracts, the interim manager's former employer was able to generate significantly more revenue and also optimize cash flow.
Thanks to the successful post-merger integration of the acquired company, the new software solution for companies with hazardous materials and dangerous goods product ranges was successfully commercialized in the coming years through cross-selling and upselling to other customers of the client.
