Software Distribution

EBITDA up 15% in 3 months

Background

Our client, a software distributor, was suspicious that it ‘left money on the table’ because of sub-optimal pricing and the latitude given to sales people. The task was daunting as hundreds of thousands of transactions, across thousands of SKUs, are processed every year.

Solution

  • The VMX team tested various segmentations within the transactions database, the CRM, and the company’s financial systems, driving new perspectives and insights.
  • Within these new segmentations, it was found that, for small-volume customers, salespeople would always nearly underprice by 20% or more. Larger-volume customers proved to be more price sensitive, but sales people didn’t behave optimally.
  • The team made recommendations to change the incentives plan for salespeople, as well as to the range of allowed discounts within the interface of their CRM, and delivered various interactive dashboards, allowing users to access critical information faster and on the go.
  • Within the 3-month duration of the exercise, EBITDA run-rate increased by 15%, with visibility into more increases down the road.
M&A Advisory IT Software & Services
Case Studies

Environics
Environics Analytics (“EA”) is a leading North American provider of marketing and analytical services. The company needed financing to support its expansion plans in the US and Canadian markets, and wanted to secure capital from a senior lender that understood EA’s value drivers. FirePower surfaced numerous proposals, then negotiated and improved on the terms and conditions to the benefit of EA.

Read Full Case Study

Last Call Analytics
When FirePower first met Last Call Analytics, the company was building custom big data analytics and visualization software platforms for frontline sales staff, primarily of beverage & alcohol distributors, but also for clients in other industries.  Last Call needed capital to grow, as well as strategic guidance to develop a stronger revenue model and focused direction. FirePower invested both capital and hard work, shifting the revenue model, focusing its resources, and ultimately, helping the company achieve its potential.

Read Full Case Study
Market Insights
From the archives: January 2020

2020 Dealmaking: Insights from Global and Canadian Experts
New year, new decade. We’re entering 2020 with an air of cautious optimism for Canadian deal making. The Phase 1 China-US deal and the…

Read Full Report