Why
Increase customer value
Increase shareholder value
Create a modern organization capable of launching new products
How
Created a startup M&A investment thesis
Scanned 400 companies to complete an acquisition search
Initiated the post-merger integration and company building process
What
Secured board approval for the purchase of two payment startups
Launched the integrated companies on time six months post-acquisition
5.3 billion SEK valuation for the standalone business unit
The challenge
Our client was a 160 year old logistics firm operating in an increasingly competitive core business. Declining margins and customer requests for innovation signaled the need for digital transformation​. By launching new products that would create more value for existing customers, the client wanted to move toward higher-margin adjacencies that would increase shareholder value.
To initiate this change, the CEO hired a Chief Innovation Officer and asked for a plan with the potential to produce significant new revenue over the next five years. After developing an idea that involved buying several fintech startups, the Chief Innovation Officer turned to Invenio to validate the strategy.
What we did
As fintech industry veterans, our team quickly proposed major adjustments to the proposed plan. Initially, the client wanted to enter the market with one type of regulatory license–but we helped them see how a different license allowed for faster market entry and a stronger long-term position. Based on this analysis, we scanned over 400 startups, identified 30 shortlist candidates and diligenced six of them. Eventually, we identified our starting point: a startup we could buy for less than six million euros. Following diligence, we helped create the business plans that were approved by the board six months after the project started.
At this point, it was time to build a billion dollar fintech company. After leading the post-merger integration efforts and launching the integrated product in just four months, Invenio stayed on board to help the new business develop and grow.
Meaningful results
Shortly after going live, our client announced the acquisition and spelled out the reasons they were moving into fintech. Equity research analysts then valued the new business line at $610 million–more than 88x the purchase price of the startup that kickstarted the plan.
Working closely with the CEO of the new business unit, we helped the organization grow from 12 to 120 people in six months. During that period, we helped the company launch in two new markets, introduce agile ways of working and fill several key executive positions.
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