Value Creation for Software and Technology Companies

Enterprise value creation for mid market software and technology companies. Proven three step approach that lead to value creation.

1. We partner with private equity and mid-market
software and technology companies to quickly
assess value creation opportunities, develop holistic
plans and urgently implement required capabilities.
We Drive and Protect Value

2. 22
Why Loremex
Clients come to us because…
They usually struggle with… They typically are…
What they can achieve with us… Here is how we help…
Create. Value
•Strategic guidance. To gain insights into how to
scale the business, drive revenue and increase
valuation multiples.
•Operational Efficiency. For advice on
streamlining processes and improving
productivity.
•Technology Optimization. To leverage latest
technologies and improve their product offerings.
•Develop 3-5 years value creation plan (growth + EBITA) OR assess
viability of current plan.
•Identify and manage the delivery of core capabilities critical to
achieving strategic value creation objectives.
•Bring resources required to implement core capabilities (e.g.,
cloud, data, AI, process engineers, strategy consultants, product
leaders etc.)
•Commit until business objectives are met and value created!
*Checkout following slides outling our 3 steps value creation process!
•B2B Software and technology company with
$10M - $800 Million in revenue and $0 -
$100Million in EBITA.
•Private Equity looking to drive growth and
operational improvements from acquired mid-
market B2B software and technology companies.
•Founders and management teams of mid
market technology companies.
•Pivoting the business to address changing
competitive landscape (e.g., Gen-AI enabled
software).
•Balancing efficiency, profitability and the need
for growth.
•Achieving ROI from technology investments
•Managing customer churn and reduced
technology spend by B2B customers.
•Accelerated path to enterprise value creation (growth + EBITA)
•Strategic alignment of desired business outcomes to required
capabilities, key initiatives and return on investments.
•Access to resources to achieve desired business objectives on
accelerated timelines.

1
2 3
4
5

3. 33
ValueCreationStep 1
Value Capturing (profit/assets)
Value Creation (capitalization/revenue)
Low
High
Low
High
Hell
Heaven Nightmare
Dream
Commodity
Hell
Innovation
Nightmare
Monopolist
Dream
Value
Heaven
Where are you in the value creation and capture matrix?
•Commodity Hell – focus on value creation for the customer through
innovation, product differentiation or effortless customer experience is
critical for companies in this category.
•Innovation Nightmare – capturing created value is key focus for
companies in this category. Think pricing and monetization strategies.
•Value Heaven - continuous improvement is needed in order not to
become complacent and resist the continuous temptation of slipping
into a dream.
•Monopolist Dream – focus on driving outcomes for the customers and
end users to prevent the firm from falling into hell position.
Problem Statement. 90% of value creation initiatives fail. Main reason for such
high failure rate is lack of understanding what capabilities are required to
effectively move your company up the value creation chain.

Solution: The very first step in understanding hidden value in your company
and what capabilities will be most effective to meet your business objectives, is
getting clear on where in value creation and capturing matrix your organization
is today. For example, if you are in:
Once you know where you are in the value matrix, you are ready to move to Step2.

4. 44
Value Creation Step 2
What levers will lead to most value for the company ?
Strategic
Advantage


Operational
Effectiveness

Value
created
•Product and Services Differentiation
•Customer Experience
•Sales Effectiveness
•Monetization & Pricing Strategy
•Network Effects
•Agile Operating Model
•Intelligent Lead to Cash Operations
•Product & Platform Engineering
•Scalable & Secure Infrastructure
•Lower Supplier Cost
Revenue
Growth
Margin
Expansion
Software & Technology Companies
Value Creation Levers

Example
If your company happens to be in Commodity Hell, the number on priority is
to create more value for the customers to try to escape the commodity trap.
For that you need to prioritize growth levers focused on the end user e.g.,
product differentiation and/or customer experience.

Once you identified levers that will move you up the value creation or
capture chain, you are ready for step 3.

5. 55
Value Creation Step 3
Connective Strategic Objectives to Initiatives to Enterprise Value
Strategic
Objectives
Mechanism
KPI(s)
Business
Capabilities
Technical
Capabilities
Product
Differentiation
AI-powered
software
+ $10M ARR
Updated CX
Process
ML/AI
Engineering
Resources 1
Resources 2
Milestones 1
Milestones 2
Enterprise Value Created
84
+10
+ 5 -5
94
Base Business Organic Margin Inflation
New
$
Million
s

6. 2045 W. Grand Ave., Ste B, Chicago IL 60612
(224) 475 - 8306
[email protected]
Contact us
Let’s connect
https://www.loremex.com