Celsius Identity provided consultancy for a merger and acquisition case involving a company transitioning from traditional hardware authentication to digital agreements and transaction solutions. Our consultancy focused on evaluating business sustainability and transformation potential, covering key product segments such as digital agreements, identity verification, mobile authentication, hardware tokens, and fraud solutions.
We conducted a thorough P&L analysis, emphasizing the cost of sales and operational expenses (OPEX). Additionally, we analyzed the sales organization to understand why the competition, particularly in digital agreements, was outperforming our client. This assessment included evaluating the effectiveness of the sales and marketing teams in contributing to profit.
Based on our findings, we recommended downsizing the overly large sales organization and shifting the sales focus towards solution sales hunters, as the business was still too reliant on hardware sales and a farmer sales approach. We advised that the investment should proceed only if these changes were implemented, positioning the company for a more sustainable and competitive future.