Technology Company Exponential Valuation Growth
Key Results Achieved:
Streamlined new client acquisition strategy
Enhanced account servicing capabilities
Reduced operational overhead
Scalable sales infrastructure
Background & Challenge
This technology company had a market-leading product and offer but was facing stagnated growth. Efforts to hire multiple sales teams and leaders created costly liabilities and didn’t produce the desired results, leaving the founder to do all the selling.
SOAR Solution
SOAR's leadership met with the founder to learn more about the technology product and business he had created. The SOAR team then presented the founder with alternative marketing and sales plans that could be achieved with variable expenses (no salaries or guarantees) and offered to partner with him to execute the plans in exchange for a revenue share of new, future business.
Implementation
The SOAR team re-worked all of the company’s marketing materials to better reflect the stunning results the Client’s technology was achieving. Nationwide teams of referral agents were recruited, trained, and motivated daily with automated tools. Calendars were then filled with several meetings a day for digital presentations (eliminating the previous schedule of a few meetings a month that included the high cost of time and travel to meet with new prospects). Automated account servicing routines were established with new accounts to automatically upsell additional products offered by the technology company, and increase revenue with nearly every service call using actual data collected by the technology during the month.
Results & Impact
The implementation resulted in the business growing from 50 accounts to over 300 accounts in 24 months, driven by the automated, scalable strategies employed. Costs to acquire new business significantly decreased, improving profit margins. The valuation of the company increased 10x in 24 months, and further increased when the SOAR team offered its portion of the revenue share to the owner for a one-time transaction fee that wouldn’t have to be paid until the sale of the business closed. All the expense of the revenue share being paid to the SOAR team became an instant increase in EBITDA, raising the enterprise valuation — which the new buyers were eager to pay. The company also became easier to sell once it was clear that the rapid growth had resulted from scalable, automated processes rather than the success of one, or a few, personalities.
"Our company grew rapidly once we partnered with SOAR leadership and gained access to their relationships in our industry. The SOAR-influenced book of business had a higher revenue per sale and a lower churn rate — nearly half that of house accounts — making our enterprise value multiply faster and higher than expected. It was a win-win for everyone involved."
— Founder and CEO