Strategic partnership with SAP led to success in niche service sector.
Redefining services as technology solutions generated recurring revenue stream.
Training consultants in strategic selling boosted company-wide sales performance.
Deep dives
Establishing a Successful Professional Services Company
Starting a professional services company can be challenging due to reliance on service providers. Pete Martin's company, Entry Point, specialized in software implementation and focused on export compliance screening. With a strategic approach in partnering with SAP, they found success in a niche service sector.
Building Recurring Revenue through Innovation
By identifying a demand in export compliance screening, Entry Point created a recurring revenue stream offering time-consuming screening services as a technology solution. This innovation led to a significant portion of their revenue being recurring, ensuring predictable cash flow.
Strategic Selling and Business Development
Pete Martin emphasized the importance of strategic selling in professional services by training consultants to sell effectively while providing them with standardized processes and back-end support. By shifting the focus from individual consultants to company-wide sales processes, Entry Point saw improved sales performance.
Negotiating a High-Value Acquisition Deal
During the acquisition process by KPMG, Pete Martin navigated through negotiations, emphasizing a consolidated approach to deal terms and valuation. Through trust-building and clear communication, they were able to secure a favorable acquisition deal valued at an impressive 12 times EBITDA without an earnout.
Ensuring Acquisition Success and Employee Retention
To prevent talent poaching and ensure a smooth transition post-acquisition, Entry Point included non-compete agreements in the deal terms. By reassuring employees and clients while maintaining integrity throughout the acquisition process, they successfully closed the acquisition deal with KPMG.
