case study
How proof of future revenue performance secured TDS' buy-out
TDS, a leading provider of workplace security solutions, leveraged Planr to demonstrate future revenue projections during the company’s buy-out by Acre. By utilizing Planr’s advanced logic and sales components, TDS achieved accurate revenue forecasting and increased its company valuation by 33%.
The Challenge
When it came to communicating the value of the business, we needed to demonstrate the future performance of our teams and translate it into accurate revenue forecasts.
Why Planr
Proof Of Future Revenue Performance
To prepare a company for sale there is a list of components to be considered – the most important is the future performance. This is the most valuable but also the most difficult to capture accurately. So when preparing for valuation it is critical that future revenue figures are real and can be proven and delivered upon.
HOW TDS Used Planr
High Impact Data & Fast, Informed Decision Making
Planr played a crucial role in TDS’s sell-out process. It simplified the data collation and validation process, eliminating the need for complex spreadsheets and hours of manual work. Planr utilized advanced logic and sales components to project future revenue and EBITDA, providing a clear, accurate, and concise view of the sales pipeline.
As part of the deal TDS showed the revenue forecast from both the top down and bottom up, demonstrated it in multiple visual formats and supported all interrogations and queries from the buyers.
Prior to Planr, I found one of the biggest reporting challenges was accessing simple reports that could accurately reflect the position of the business. Others were happy with the reporting that was in place but I wasn’t because these reports were always questioned and we were getting stuck in the granularity of the data – that is not where a senior leadership team should be spending their time. Planr gave us everything we needed to convince the buyers that TDS could deliver the projected future revenue and currently we are on track to do that.”
Sean Murphy
Senior board member, tds
The Results
By leveraging Planr’s capabilities, TDS successfully demonstrated future revenue performance during its buy-out process, leading to a significant increase in company valuation. Planr simplified the reporting process, aligned finance and sales teams, and empowered the leadership team to make data-driven decisions. TDS’s adoption of Planr not only secured the buy-out but also paved the way for predictable revenue growth and enhanced business strategies.
Revenue is critical to any business today. We learned a lot about revenue analysis during the deal and Planr managed a huge amount of scrutiny. The Revenue Assurance Number is unique to Planr and it gave the buyers confidence in TDS’ future performance. Planr results are real, scientific and credible.”
We had certain systems in TDS but they were owned by each department, creating siloed views and increasing the chances that we would miss something key to our growth and performance.
If you are sitting on a board or are a stakeholder with a financial or strategic focus then you need a tool like Planr to help you keep an eye on the business instead of becoming lost in the detail. Oftentimes people are focusing on the wrong information and rearranging deck chairs rather than accessing the right predictions and taking impactful decisions.
Private Equity firms can value your business on either current or future performance. Future performance is preferable, however it’s the hardest to demonstrate. To build trust in the data, you have to show mature data processes and a sophisticated level of financial grip.
Our buyers were impressed by the level of sophistication we could demonstrate, how accessible accurate data was when they had a request or needed to interrogate, and how well the data stood up to scrutiny as part of the validation process.
This gave them assurance of future performance without any need for massive manipulation or additional spend on data science resourcing.
It’s critical to the valuation that future figures are real and can be interrogated, proven and delivered upon. Planr’s depth of data, logic and visualisation capabilities gave us this.
It can be very difficult to get a simple view of revenue. In most businesses the multitude of existing systems, processes and people involved creates complexity, and complexity leaves you open to error. Planr handles massive complexity but it is hidden from me as a user. Software should be simple and user friendly and that’s what Planr has achieved.
