Company is a provider of cloud and hybrid unified communications (“UC”) products and certified secure IP telephones for Federal applications. Company has long legacy in telephony including more recent historical success with ISDN technology.
Company owns and maintains intellectual property in the telecom markets, and has a dealer network of successful partners. The hosted UC market experienced significant shifts and growth over the past five years, and the Company needs to invest to keep pace with those changes. Revenues have declined in recent years as has the company’s focus on Sales.
Reclinata conducted an intensive due diligence assessment of the Company as part of a decision process to invest or purchase. The Company has created a strong technology offering in the UC market with a loyal dealer base, but has not invested as quickly as others to expand presence and reputation. In addition, Company’s secure phones are a strong niche product with strong market reception. Company requires investment in software development and Sales (both direct and channel).
Reclinata Group Analysis
Reclinata’s Value Creation Plan for the Company focuses on revenue expansion through attention to product development and distribution, through utilizing Reclinata’s fractional executive resources.
The Plan calls for immediate sales and marketing spend to reinforce messaging to Company’s channel about further new investment in engineering and support, and to drive immediate new revenue for the Company. The Plan also calls for immediate expansion of the Company’s product development team to ensure successful launch new releases of the product. Company expansion is expected to come from both organic and acquisition growth opportunities.
Value Creation Plan
A Reclinata affiliate concluded the purchase of Company and has installed a fractional CEO, COO, and Marketing Specialist. Hiring of additional sales and engineering resources is underway. Reclinata was able to begin implementing its Value Creation Plan immediately after acquisition and brought the Company’s organization over – essentially intact.