Strategic M&A for innovative mortgage software
Situation
In this scenario, we encountered a unique opportunity—a software solution born from collaboration between Swedish retail banks and real estate agents. This software promised significant efficiency gains in managing contracts and mortgages for private home transactions. In 2021, seven banks decided to explore the exclusive option of acquiring this game-changing software. Their evaluation process involved the creation and review of crucial components:
Business Plan: This involved an in-depth market analysis, strategy development, and an extensive review and enhancement of the existing SaaS pricing model. Additionally, an implementation plan was meticulously crafted.
Business Case and Investment Plan: Avanti played a pivotal role in shaping the business case, including the creation of a comprehensive P&L forecast model. We conducted a thorough review of financial and technical due diligence materials and the shareholder agreement.
Project Organization: To ensure seamless progress, we established a project organization comprising a steering committee, a technical committee representing the banks and Avanti, and a legal committee with external advisors. Avanti's crucial role extended to coordinating efforts across these diverse forums, fostering trust, and building a shared understanding among the collaborating banks.
Solution
The Avanti team led the development of central decision-making material for the banks, including:
Business Plan: This encompassed market analysis, strategy development, business model refinement (including SaaS pricing model enhancements), and a detailed implementation plan.
Business Case and Investment Plan: Avanti created a comprehensive P&L forecast model to support the business case. We conducted a meticulous review of financial and technical due diligence materials and the shareholder agreement.
Result
Our efforts culminated in the creation of a robust deal strategy and decision-making material to acquire this invaluable software. We also devised an effective implementation plan to execute the acquisition seamlessly. On March 24, 2022, we presented our unanimous recommendation to proceed with activating the purchase option, which was met with public acknowledgment.