Increasing valuations at exit through efficient growth
At Exit Point Partners, we combine advisory and execution to help optimize growth-stage B2B SaaS and tech-enabled services companies to achieve stronger, efficient-growth enabled, outcomes no matter where they are in their maturity
Six Overlooked Challenges for Growth Technology
In today’s market, tech businesses with efficient growth are rewarded with valuations that are 30-50% higher. To achieve this, leaders must balance revenue growth and cash generation by optimizing execution, profitability and talent.
Technology companies have rightly focused on sales, marketing and product to drive growth; but in our experience across more than 50 companies, these are the six overlooked challenges to drive efficient growth and exit valuation
rapid execution
Not moving quickly enough against the key priorities of the business is often an indicator of a leadership team that is missing alignment, accountability and the right ongoing cadence to drive results
finance rigor
Finance has to level up to enable efficient growth, and many finance teams are not prepared. The need to tightly manage cash, predict the future, provide the right data, assess investments and build scalable business support capabilities (process and systems) is critical
Pricing and Packaging
Non-standard contracts, a complex price book, no natural upsell path and low NRR indicate that pricing and packaging is failing to capture a product’s true market value. Listen to current and potential customers about what they value most and develop packages to drive higher ACV
value from M&A
Having made an acquisition, quickly achieving the right integration with a management team that is accountable for driving value creation can be challenging, especially when most companies lack the in-house skills. In the worst case scenario, the acquisition becomes a distraction to the performing core business
workforce and cost optimization
Labor cost is the biggest driver of tech company’s expense base, but typically there is no workforce strategy. What is the optimal mix of outsourcing, offshoring, on-demand, tech enabled and US based talent? Similarly, hosting and SaaS spend can be out of control and a significant impact to gross margin and EBITDA
exit readiness
CEOs and CFOs should be planning 12-18 months ahead of a potential exit. Tune the business for growth and profitability—efficient growth—and get the data in shape to withstand buyer diligence. Do not leave the low-hanging fruit for the next investor
Our Past Clients
How Exit Point Partners Can Help
Proven strategies for growth, profitability and value realization
Operational Execution
Executing at pace begins with leadership being one team to drive alignment and accountability. Where this does not exist, we help establish the foundation before moving to a weekly cadence of execution against quarterly objectives
M&A Diligence
We take a rigorous and defined approach to diligence, assessing both the financial and commercial opportunity in a way that builds alignment in the executive team around how value will be created
Finance excellence
Our methodology rapidly identifies where gaps exist in data, planning, accounting close and cash compared to the desired state, and employ best practices to address those gaps. And if faced with a crisis, we are experienced fire-fighters
pricing and packaging
We utilize a solid fact base of buyer/customer insights that is understood by an empowered pricing committee to develop new pricing and packaging structures that will resonate both internally and externally. Don’t underestimate the internal change management effort to execute successfully
M&A Integration
Integration planning starts before the deal closes. We focus on quickly building alignment and ownership across the leadership team for the acquisition, and from there, establish a detailed plan with clear ownership that can be driven to completion in 90 days
workforce transformation
This is not a RIF. It is about building a new normal for the most efficient and effective workforce to grow a business. Done right, this will be a positive boost to the company culture and capabilities
cost optimization
Bringing analysis and discipline to cost review will typically surface 3-5% of a cost base that can be eliminated with little hardship. We bring independence and an outside perspective to the review, but our work is still structured as discovery based engagements so we are collectively able to get to action quicker
M&A - synergy capture
To achieve the 1+1=3 of your investment thesis, it is essential to break down synergies into actionable activities with assigned leadership responsibilities. Unlike integration planning, planning for synergy realization often occurs in the first 30 days post close
exit optimization
The best time to think about selling a business is 18-24 months in advance of a transaction. With a solid foundation in data, we work to recommend proven strategies that will increase (revenue and cost opportunities) or safeguard (data readiness) exit valuation
Our Engagement Types
Interim/Fractional
Project
Advisory/Coaching
Risk Sharing
Case Studies
$250m + B2B Horiztonal SaaS
Results: $35m+ revenue growth, EBITDA from (1%) to 20+%
Advised on:
- M&A diligence, integration planning, synergy capture for product add-on acquisition
- Price uplifts
- Operational clarity through metrics
- Liquidity management.
$60m + B2B Horiztonal/Vertical SaaS
Results: 20% revenue growth, EBITDA from (5%) to 20+%
Advised on:
- Forecasting accuracy
- Outsourcing and offshoring
- Price uplifts
$15m + B2B Vertical SaaS
Results: 30% revenue growth, 30% uplift to base, increased win rate
Advised on:
- Onboarding and coaching new CFO
- Pricing strategy
- Finance excellence including data accuracy, forecasting and cash management