Pierce Washington
In January 2022, KCO recapitalized Pierce Washington, LLC, a leading software system integrator executing enterprise-level configure-price-quote (CPQ) and digital commerce implementations.
Thesis
Fortune 1000 B2B companies have been increasingly undergoing “digital transformations” across the enterprise and require assistance in enabling these transformations, particularly in the quote-to-cash set of business processes. While the enabling software is readily available from vendors such as Oracle and Salesforce, there is a need for system implementation/integration (SI) partners with demonstrated expertise in this particular niche.
Large global SIs such as Deloitte and Accenture offer this service, though they typically lack the depth of knowledge in this particular niche. Smaller specialized players have depth in particular areas but typically do not offer a holistic “total commerce” solution that includes configure-price-quote (CPQ),digital commerce, subscription management, etc. Our thesis is built around filling this gap in the marketplace by identifying and partnering with a company that had the capability to fill this gap if provided additional capital and guidance.
Company
Founded in 2005 and headquartered in San Francisco, CA, Pierce Washington is a software system implementer/integrator that assists companies with the digital transformation of their quote-to-cash process. It helps organizations connect their customers, channel partners, and internal sales teams with the information they need to increase revenue and improve margins.
Its clients understand that achieving the benefits of a digital transformation strategy requires knitting together a patchwork of customer information that lives across the enterprise. Its founders, who came from the global system integrators, saw an opportunity to bring the experience of larger consulting firms but with more focused teams and a more flexible approach. As a result, Pierce Washington has built a reputation for customer focus and delivery excellence.
KCO Value Add
- Identified an executive (Marc Murphy, owner of Ignite Labs LLC) with an initial thesis around offering a “total commerce” system implementation/integration solution
- Refined the thesis into a strategy, based on market research, market segment analyses, customer interviews, competitive research and other analyses.
- Identified and evaluated, with Marc Murphy, several potential companies that could be part of the initial platform for the strategy.
- Identified an appropriate capital structure and investor partners, bringing in Spring Capital Partners and Southfield Mezzanine Fund in addition to Ignite Labs
- Worked with the team to create a detailed 100-Day Plan to guide executional priorities – and then guided the execution of the 100-day execution plan
- Implemented more formal governance, including a Board of Directors (including independent Directors), monthly operations reviews, a formal strategic budgeting process.
- Applied enhanced financial reporting and controls, including a new accounting structure that provides P&Ls by practice area, operational dashboards, and audited financial statements.
- Implemented an employee retention plan, including retention bonuses and an equity incentive plan that covered all existing employees.
- Implemented a process for identifying, screening and executing add-on acquisitions that fit with the strategy and can accelerate Pierce Washington’s execution of its strategy.
