Post-acquisition due diligence to validate internet sales platform

PE-BACKED ONLINE BUILDING PRODUCTS RETAILER

POST-ACQUISITION DUE DILIGENCE TO VALIDATE INTERNET SALES PLATFORM

PE-BACKED ONLINE BUILDING PRODUCTS RETAILER

POST-ACQUISITION DUE DILIGENCE TO VALIDATE INTERNET SALES PLATFORM

Panamoure was requested by a PE fund to perform a Digital Strategy Due Diligence review on a relatively new acquisition that had not been subject to an IT Due Diligence ahead of investment. As the business had several key competitors in the marketplace, the PE investor required a third-party Due Diligence perspective on the digital platform, the quality of the business’s digital strategy and the competence of the management team to deliver. It was important to the fund that the strategy be validated as future commercial revenue targets and the potential for EBITDA growth played a critical part in the final negotiated price. This was also a priority for the fund as they considered changes to the leadership that could affect the day-to-day operation of the platform and retention of the existing middle management team.

What were the challenges?

Conversion rate numbers were “untrusted” by the fund
The management team based sales forecasts on “gut feeling”
There was a lack of understanding of the “customer journey”
All SEO work was done externally to the business
There was a total dependency on TrustPilot for customer feedback
The solution was already manufacturer end-of-life technology
There was no documentation from the Indian & Europe-based developers
Neither was there documentation of the organisation’s processes
There was no digital warehousing so, order processing was manual
Order fulfilment was heavily dependent on a third-party supplier

So, what did we do?

Panamoure quickly reviewed the application and technology stack
Interviewed Indian and European developers via video conference
Assisted the organisation in developing the digital marketing plan
Developed a roadmap for migration from the legacy platform to the portfolio company’s preferred replacement
Validated the portfolio company’s website analytics and mentored local management team to use data analytics for better marketing
Recommended a digital, “Amazon style”, warehouse management system and process for product and fulfilment management
On the back of this successful engagement, Panamoure was appointed to deliver the migration to the new digital platform

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What were the challenges?

Conversion rate numbers were “untrusted” by the fund
The management team based sales forecasts on “gut feeling”
There was a lack of understanding of the “customer journey”
All SEO work was done externally to the business
There was a total dependency on TrustPilot for customer feedback
The solution was already manufacturer end-of-life technology
There was no documentation from the Indian & Europe-based developers
Neither was there documentation of the organisation’s processes
There was no digital warehousing so, order processing was manual
Order fulfilment was heavily dependent on a third-party supplier

So, what did we do?

Panamoure quickly reviewed the application and technology stack
Interviewed Indian and European developers via video conference
Assisted the organisation in developing the digital marketing plan
Developed a roadmap for migration from the legacy platform to the portfolio company’s preferred replacement
Validated the portfolio company’s website analytics and mentored local management team to use data analytics for better marketing
Recommended a digital, “Amazon style”, warehouse management system and process for product and fulfilment management
On the back of this successful engagement, Panamoure was appointed to deliver the migration to the new digital platform

DO YOU NEED TO
DIGITALLY OPTIMISE
YOUR BUSINESS?

We are experts in what we do. Committed professionals who are at the leading edge of our specialised field.

GET IN TOUCH

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