42%
Licensing Savings
23%
CAC Reduction
142 min
Time Saved / Rep
The Situation & Approach
Context & Challenge
The Challenge
This company had to hit a tight deadline for such a large migration across two companies. One of the acquired companies was 150 people in size while the other was 300. In addition, the two companies had extremely different monetization models, support processes, and sales funnels. This brings together a multitude of complexities across record types, permissions, views, workflows, pipelines, etc. There had to be a balance of standardization for the teams while taking into account they each required customization. On top of this challenge, the Private Equity firm decided to migrate from QuickBooks to NetSuite at the exact same time, which required a very complex integration thrown into the mix.
Our Solution
The Operators at the Revenue Institute understood the business case and the technical complexity. The team started by doing a week-long deep dive into both businesses being merged. This included shadowing the sales and marketing teams, meeting with accounting, and getting leadership buy-in for a new architecture. After this, the Private Equity firm's Salesforce Administrators focused on supporting the sales teams while Revenue Institute focused on building new architecture in a full Salesforce sandbox. This required a custom integration with NetSuite, custom Apex triggers, migrating to Salesforce Flows from deprecated Workflows, and building a custom CPQ solution. The team put every focus on this project, enabling the project to be completed in 88 days - two days short of the deadline.
The Results
42% Saved in Licensing Costs
The Private Equity firm was able to avoid paying for two disjointed instances of Salesforce that would have cost 42% more per year due to paying for Salesforce-built features instead of building customizations that would avoid unnecessary licensing.
23% Saved on Client Acquisition
Both companies acquired by the Private Equity firm were able to cross-sell and up-sell with each other while the marketing teams were able to track campaigns together. This resulted in a 23% reduction in the cost to acquire new clients.
142 Minutes Saved per Day
Based on the workflows and integrations built for both acquired entities, the Private Equity firm estimated that each of their sales team members saved 142 minutes per day. This enabled them to focus on selling and client relationships, not data entry.
Outcomes
Key Results Achieved
42% Saved in Licensing Costs
23% Saved on Client Acquisition
142 Minutes Saved per Day
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Frequently Asked Questions
What is private equity?
Private equity refers to investment funds and investors that directly invest in private companies or acquire control of public companies with the goal of generating returns through operational improvements and financial engineering.
How does private equity work?
Private equity firms raise capital from institutional and high-net-worth investors, then use that capital to acquire and improve private companies. The firms aim to increase the value of the companies and sell them at a profit after a holding period, typically 3-7 years.
What are the main strategies used in private equity?
The main private equity strategies include leveraged buyouts, growth capital, venture capital, and distressed investing. Firms use a combination of debt and equity to finance acquisitions and drive value creation.
What are the potential benefits of private equity investments?
Potential benefits of private equity include higher returns compared to public markets, portfolio diversification, and access to private companies and management expertise. However, private equity investments also carry higher risk and less liquidity.
Who invests in private equity funds?
Institutional investors such as pension funds, endowments, and sovereign wealth funds are major sources of capital for private equity funds. High-net-worth individuals and family offices also invest in private equity.
How do private equity firms generate returns?
Private equity firms generate returns through operational improvements, financial engineering, and favorable market conditions when they exit their investments. Strategies include cutting costs, improving management, and using leverage to enhance equity returns.
What are the risks of private equity investments?
Risks of private equity include illiquidity, leverage, lack of transparency, and dependence on fund manager skill. Investors also face the risk of portfolio company underperformance or failure, as well as potential conflicts of interest between investors and fund managers.