The Situation
Having a desire to shift its ARR mix from a reseller-focused model (selling another company’s software) to a more direct sales model (selling its MCCi-owned software), MCCi sought to identify acquisitions that could continue to increase the direct sales motion of the company. In turn, MCCi’s acquisition strategy was focused on understanding the types of companies and products that overlapped with its ideal customer persona (ICP) and expanded its TAM and product offering. MCCi already owned JustFOIA, a leading records request platform, but the team wanted to continue to find ways to further drive value for new and existing customers with complementary solutions. A portfolio company of Century Park Capital Partners, MCCi was familiar with Ascend’s work through a previous transaction and saw the benefit of leveraging our team’s industry knowledge in identifying companies to acquire. Knowing MCCi was focused on acquiring a partner that aligned with existing product offerings and its ICP while creating opportunities to scale, we led the team through the entire lifecycle of the transaction, including:
- Conducting proprietary market research to understand market trends for relevant software products
- Performing analysis related to cross-sell, upsell, price increases, and areas for growth to quantify the opportunity behind the potential combination
- Identifying potential sellers, including conducting outreach and vetting prospective targets
- Preparing presentation documents, including diligence data packs, investment committee materials, and combination analyses
- Managing the due diligence process
- Cultivating relationships with MCCi, CPC, GovBuilt, and third parties
Industry
- Software & Technology
Client Type
- Private Equity Backed
Services Provided
- Buy-Side Transactions
Press Release(s)
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The Strategy
To help MCCi expand its product offering and meet the ever-changing demands of government agencies, we needed to ensure the company it acquired was complimentary to MCCi’s existing product set, ICP, culture, and values. We outlined a M&A strategy that would allow us to clearly define the market, determining with greater specificity the product demand, growth spots, and opportunities to expand MCCi’s existing client base. By planning and executing this playbook, we were equipped with data that paved the way to identifying the optimal partner for growth opportunities.
The Execution
Ascend conducted extensive market research to better understand customer demand, which included surveying employees to learn what products were being discussed within the company, at conferences, and by their target customers. We also reviewed MCCi’s internal data to understand customer requests and the evolution of their needs. After analyzing all the collected data, we defined the ideal customer profile (ICP) that encompassed all levels of government. This helped us determine the software asset that would best complement MCCi’s existing product offering and meet market demands.
The Results
Clearly defining the ICP and market demand drove us to expand the list of potential acquisition targets, which included GovBuilt. An idea that initially felt outside the team’s comfort zone quickly became a partnership everyone was enthusiastic to support, as our research and analysis showed, the market was strongly in favor of a combination of MCCi’s products with an innovative software platform like GovBuilt. After the deal closed, MCCi and GovBuilt immediately began receiving new leads, reflecting the market’s excitement and confirming that the unique combination was the right move.
The Ascend Advantage
Our team focuses on the future of our clients’ companies to cast a vision around potential avenues of growth. In this transaction, we leveraged our industry knowledge, market research, and proprietary analysis to articulate the value of bringing these two best-in-class organizations together. Through the additional due diligence efforts, we were able to provide MCCi with a comprehensive view of where it could grow and the value to be unlocked vis-à-vis a strategic acquisition in the permitting and licensing ecosystem. We strive to develop strong relationships at the outset of our client engagements, and the trust built helps make it possible to explore non-traditional avenues that might not have been otherwise considered. Our approach allows us to get to know our clients well, confidently advise them on the best option, and ensure they are comfortable before taking it.Next Up
