Phase 1: Sourcing
Herkules’ Industry Group Services had monitored Admincontrol over several years. Herkules believes in the attractiveness of digitalized services in a proven SaaS (software as a service) model. Also, Herkules has been keen users of the Admincontrol solutions in several companies and processes.
In the fall of 2014, Herkules approached the company and met with the management team. Following continued interest, Herkules made extensive analysis and evaluations, focusing on understanding Admincontrol’s key value drivers and competitive position.
In January 2015, a structured sales process of Admincontrol was launched. Herkules participated in this process, well positioned after completing substantial fundamental and important analyses ahead of the competition. Based on research performed and dialogue with the management team, we established an action oriented value creation plan focusing on the following:
- Increase number of accounts for Board Portals and Virtual Data Rooms
- Increase average revenue per account and customer (ARPA and APRC)
- Keep churn low
- Develop product offering
- Do all this while strictly monitoring cost
The transaction was signed on 18 March 2015, and completed in early April.
Phase 2: Development
As active owners focusing on improving and realising the value of the portfolio company, phase 2 is the most important. In this phase we execute on the value creation plan and the initiatives identified in phase 1. Together with Admincontrol’s management, we defined a focused growth plan with clear targets both in terms of products/solutions and geographies as well as a detailed action plan to execute on the overall value creation plan
Admincontrol is currently working on executing the value creation plan. Since the acquisition, Admincontrol has acquired its agent/partner in Sweden. This initiative should ensure closer coordination, collaboration and control and should lead to improved efficiency. We already see accelerated growth in the attractive Swedish market.
Phase 3: Exit
With improved strategic position and value of the company, we foresee industrial interest for Admincontrol. The company has a leading position in the Nordic market, and the business model has proven to be both scalable, profitable, and successful.