Growth via business acquisition is a common strategy for recurring revenue businesses, providing rapid revenue gains, increased customer base, and cost-side synergies. The problem is that, depending on where a recurring revenue business sits on the Recurring Revenue Maturity Curve™ , each has optimized its operating practices to serve its own approach and customer needs. After the acquisition is made, attention must immediately turn to how these independent entities can be quickly combined to operate efficiently and realize value within the expected timeline.
We help our clients with their post-acquisition integration strategy. We evaluate the current state of operations, product catalog, system architecture, and customer expectations across acquired entities. Our methodology results in a new or updated integration playbook with a clearly stated reference architecture, an integrated view of recurring revenue methods, and a transparent step-wise plan for bringing businesses into the fold.
“Within a year, we acquired ten complementary companies with products to supplement our flagship offering and extend our product footprint. We needed to avoid the pitfalls and mistakes that we had seen before—fragmented systems, explosion of SKUs across the business, and failure to meet cross-sell and up-sell expectations. At the beginning, we had multiple systems capturing information and no comprehensive view into our customer base, product performance, or finances. Our leadership teams were mired in day-to-day, post-acquisition “make-work” stopgap measures to run the business. The Navint team helped our leaders develop and implement a unique reference architecture that transformed our existing business and eased the way for future acquisitions.” – Current Navint Client, CFO
The success of rapidly integrating a portfolio of recurring revenue businesses comes from understanding the desired customer journey, creating the right reference architecture, iterating on operations, and accelerating leadership’s understanding of Continuous Customers™. With the right vision, discipline, and experience, developing these competencies doesn’t have to take long.
Integrating recurring revenue businesses into a combined entity is a major undertaking that Navint knows well. In fact, Navint is one of few management consulting firms that has a fully-dedicated practice with deep domain experience and a proprietary, continually-evolving methodology to help organizations navigate the journey to success with recurring revenue, subscription business models, monetization strategies, and Continuous Customers.
Do you need help with your acquisition integration strategy and execution? Contact Us today.