Situation

The acquired entity is software created in cooperation between Swedish retail banks and real estate agents, greatly improving efficiency around administrating contracts and mortgages in private home transactions.

In 2021, seven banks sought to evaluate an exclusive option to carve out and acquire the software through creating and reviewing:

• Business plan

• Business case and investment plan for acquiring the software

Governance structure, operating model, and implementation plan for the potential acquisition

Solution

The Avanti team lead the establishment of central decision material for the banks:

• Business plan: market analysis, strategy & business model including review and improvement of the current SaaS pricing model, and implementation plan

• Business case and investment plan: P&L forecast model created by Avanti

• Review of financial and technical due diligence material and shareholder agreement

The project organization consisted of a steering committee and a technical committee with representatives from the banks and Avanti, and a legal committee with external advisors. A key aspect of Avanti’s role was to coordinate the work between the different forums and establish trust and common understanding between the different banks cooperating in the transaction.

Result

1. A comprehensive deal strategy & decision material for acquiring the Software

2. Implementation plan for the acquisition

3. Recommendation to proceed in activating the purchase option was unanimously accepted and communicated publicly on March 24th 2022