Succession and Success: A Wellington Case Study

CASE STUDY
Succession and Success: A Wellington Case Study
Background
Wellington’s co-founders, Alex Dunne and Kevin Taylor were employed as software
developers within Guinness PLC. In the early 1980s, the company decided to shut
down non-core operations, including the software development division. Dunne and
Taylor agreed with their former employer to acquire the rights to continue developing
the software the two had been working on, and launched Wellington Computer
Systems Ltd.
As their first product, Wellington launched a comprehensive ERP solution for the
beverage distribution industry to aid with the management of financials, order
processing and stock control. Over the years, Wellington has successfully expanded
into the Credit Union industry and now serves over 150 Credit Unions throughout
Ireland. Its products help manage many of the processes associated with delivering
member services such as online banking, smartphone apps, and full access to
national clearing.
“We liked how
Volaris used a
long-term lens in
its approach, setting
the company up for
sustainable success.”
Thinking about Succession
Dunne and Taylor continued growing
Wellington steadily over the decades.
However, after 30 years at the helm,
—Alex Dunne,
they realized that it was time to start thinking
Co-Founder of Wellington Software
about succession planning. The challenge was
5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408
that neither partner had a clear vision of what
succession planning would entail.
As Dunne and Taylor had considerable concern
for the well-being of Wellington’s customers
and employees, they wanted the company to
volarisgroup.com
1
The Volaris Group
remain a viable operation long after
their retirement. As a result, Dunne and
Taylor began assembling an executive
team to eventually assume leadership
responsibilities.
Once the executive team was in place,
the question of transferring ownership
was contemplated. Initially, Dunne
and Taylor considered a management
buy-out as their exit strategy, however,
the complexities of such a transaction
proved to be a significant obstacle. Since
there was no pressing motivation to exit
the business, much of the succession
discussions remained on the back burner.
Without a clear succession plan in place, Dunne
was receptive when approached by the Volaris
Group. After meeting with representatives from
Volaris, Dunne was immediately impressed by
their professionalism and felt that Volaris was a
natural home for their business.
“The big thing for me was that we
were immediately comfortable
with Volaris. We felt that they kept
a very open dialogue and were
honest people.”
—Alex Dunne
As a buy-and-hold acquirer of vertical market
software businesses, Volaris’ acquisition
philosophy is well-aligned with the goals of Dunne
and Taylor. Namely, Volaris was able to offer
stability for Wellington’s employees and customers,
while keeping the company as a whole intact.
Moreover, since Volaris has experience within the
highly-regulated financial services space, Dunne
believed that Volaris would be able to effectively
steer the credit union side of Wellington.
5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408
volarisgroup.com
2
Adjusting to Life
Under Volaris
Initially concerned with how their
customers and employees would
react to the sale to Volaris, Dunne
was pleasantly surprised by how well
everybody took the news.
“Both employees and
customers felt it was a
positive step so that quelled
any uncertainty we had.”
—Alex Dunne
Customers in particular, were pleased
that Wellington is now part of a larger
organization, allowing it to scale in a
fast-changing marketplace. Employees
appreciated Volaris’ focus on
continuous learning and development,
which includes annual talent reviews,
as well as frequent opportunities
for knowledge sharing across
Volaris’ businesses. Ultimately, both
employees and customers felt that the
company was put in good hands.
Focusing In
Volaris has brought a sharper focus to
commercial matters. Introducing new
reporting guidelines, promoting new
key performance metrics, and providing
internal benchmarks has enabled
Wellington to improve its business
planning and operations.
“There has been a shift
in how we report things
which has brought a more
structured and focused
approach to how we look
at the business.”
—Alex Dunne
These best practices, accumulated
from over 200 acquisitions to date, are
specifically tailored for vertical market
software businesses like Wellington.
Closing the Loop on
Succession Planning
Because Volaris holds its companies
indefinitely, positioning the businesses for
long-term success is a priority.
Sharing best practices relating to strategic
and daily operations helps ensure a smoother
transition as Dunne and Taylor prepare for
retirement. Consequently, Dunne and Taylor
can be assured that Wellington’s employees and
customers will be well cared for, and the business
remains operational into their retirement.
“At the end of the day,
Volaris did everything they
said they would and everybody
thinks of the sale positively.”
—Alex Dunne,
Co-Founder of Wellington Software
Since the sale closed, there have
certainly been progressive strides
made within the organization, and
Dunne and Taylor believe that this is
just the tip of the iceberg.
5800 Explorer Drive, 5th Floor, Mississauga, ON Canada L4W 5K9 | Tel: (905) 267 5400 | Fax: (905) 238 8408
volarisgroup.com
3
About Volaris Group
Volaris Group acquires, strengthens and grows vertical market
technology companies enabling them to be clear leaders within their
focused industry. Volaris Group companies provide specialized,
mission-critical solutions to vertical markets around the world
including Agri-Food, Asset Management and Logistics, Justice,
People Transportation, Marine and Rental Management.
Volaris Group is an operating group of Constellation Software Inc.
Learn more at www.volarisgroup.com
5800 Explorer Drive, 5th Floor
Mississauga, ON Canada L4W 5K9
Tel: (905) 267 5400
Fax: (905) 238 8408
volarisgroup.com