The Value Added Reseller (VAR) market is witnessing a historic change to business models which is incomparable to anything previously experienced. Changes being made at the
OEM level and with software manufacturers continue to create significant disruption of cash flows, healthy balance sheets, and long-term sustainability. The technology market is rapidly shifting to a “software-defined” market which is placing considerable downward pressure on the channel. New Light has deep verticle experience in the VAR community ranging from building, growing and selling. Our leadership team comes alongside your organization to help you in the following ways:
First, our team emphasizes examining the financial health of the organization.
Many VARs today are reactive to the changes in the market rather than taking a proactive, strategic approach. We work closely with you to examine the financial status of the company by looking at various revenue streams, cost of goods sold and back-end administration cost. Additionally, we carefully work to understand the impact the changes in the market have on your business and what will be required not only to survive but become profitable.
Second, our team reviews the structure of your overall sales and marketing department. Many VAR’s continue to embrace legacy sales force models which fail to address customer requirements and adapting to upstream changes. Our goal is to understand the gaps, what options exist for closing them and set your sales and marketing team on the path to success.
Third, our team takes an in-depth look at your professional services team. Unfortunately, far too many VARs have an un-healthy bench of technical consultants which creates a considerable drag on their financials. Again, we continue to see many VARs take a legacy approach to business and are failing to adjust to market changes. We closely work with you on how to build out a professional services organization of the future focused on high levels of utilization and profitability. Finally, many VARs are not interested in undergoing the transformation which is occurring in the industry.
They have developed a valuable client base and skilled employees but want to consider other strategic options. Our team has years of experience in working with VARs to establish an evaluation of their business and provide realistic opportunities for exiting the company through a sale or merger.