Squirrels Case Study
- Headquarters: North Canton, Ohio
- Acquisition Date: 2023
- Vertical Market: Education
- Visit Company Website
Introduction
Squirrels, an Ohio based software-development company established in 2012, specializes in wireless audio and video transmission. Popular Squirrels products include Ditto, AirParrot and Reflector. Squirrels joined Volaris Group in 2023 as part of its education vertical dedicated to delivering mission-critical software for educational institutions. With over 11 years of experience, Squirrels SaaS solution serves about 1,000 customers and their OEM solution has touched millions around the world.
Background
In 2008, fueled by the advent of the first iPhone and the burgeoning mobile app industry, the Squirrels team set off on a journey to pioneer innovative solutions in technology. This journey began with the establishment of Napkin Studio, a company dedicated to mobile app development during the growing stages of smartphone proliferation. As they delved deeper into their work, a remarkable opportunity emerged from the challenges they encountered in their development process.
Napkin Studio’s mobile app development unveiled a pressing need for wireless screen sharing software. With the advent of smartphones and tablets, showcasing app prototypes and demonstrations to clients became increasingly cumbersome, lacking viable solutions to seamlessly mirror device screens onto larger displays. Recognizing this gap in the market, the team conceptualized a solution that would not only streamline their own development workflow but also cater to the broader demand for collaborative screen sharing.
This realization spurred the inception of Squirrels, a spin-off company dedicated to revolutionizing screen sharing technology. Squirrels unveiled its flagship application, Reflector, just as iPads gained traction in classrooms worldwide. With educators grappling with cumbersome hardware setups to display content, Reflector emerged as a game-changer, offering a seamless solution to mirror device screens wirelessly.
In 2012, recognizing the synergies between Napkin Studio’s innovative spirit and Squirrels’ pioneering technology, the two entities merged, solidifying their commitment to advancing screen sharing and collaboration. Since then, Squirrels has remained at the forefront of innovation, empowering users with intuitive solutions that bridge the gap between devices and displays.
The decision for Squirrels to sell stemmed from a multitude of factors, each contributing to a realization that the time was ripe for a transition. One significant factor was the evolution of the company’s leadership dynamics, with one partner gradually stepping back from day-to-day involvement. This shift underscored the need to reassess the company’s long-term trajectory and ensure a smooth transition of responsibilities. Additionally, having dedicated 15 years to building and nurturing Squirrels, the founders recognized the importance of planning for the company’s future beyond their direct involvement.
Decision to Sell
Selling the company provided a strategic opportunity to secure its longevity and sustainability, ensuring that it could thrive even in their absence. Rather than a desire to move on to new ventures, the decision was driven by a commitment to positioning Squirrels for continued growth and success, acknowledging the importance of succession planning and strategic evolution after a decade and a half of innovation and dedication.
Why Volaris?
In their pursuit of a suitable buyer, Squirrels engaged in discussions with venture capital and private equity firms. However, their primary concern lay in finding a partner who understood and respected their unique company culture, which they hold in high regard. While these firms offered financial resources, Squirrels recognized that an infusion of capital wouldn’t address all their needs. Instead, they sought a buyer who shared their values and embraced a long-term perspective, rather than focusing solely on short-term returns. The traditional investment models of venture capital and private equity, with their emphasis on rapid ROI and potential for drastic organizational changes, failed to align with Squirrels’ vision.
When the buy and hold forever Volaris concept was presented to us, that was when it clicked and we said, ‘OK, so with Volaris Group we can basically continue to feel like we’re still Squirrels.’
The prospect of joining Volaris promised the stability and resources of a larger company while allowing Squirrels to maintain its unique identity and operational autonomy. The pivotal factor in their decision-making process was finding a buyer who not only respected their culture but also brought valuable insights and expertise to further enhance their growth trajectory.
Unlike others who sought to impose rapid changes and extract immediate returns, Volaris embraced a collaborative model that prioritized sustained growth and mutual success. Essentially, Volaris’ demonstrated track record of empowering acquired companies to thrive within its ecosystem, coupled with its willingness to provide valuable insights and support, positioned it as an invaluable partner for Squirrels’ continued evolution and success.
Post-Acquisition Changes
Following the acquisition, Squirrels experienced subtle but meaningful changes in its relationships with both customers and staff. From a customer perspective, there was a gradual implementation of Volaris’ sales and marketing principles, which entailed adjustments in strategies and marketing approaches. While these changes aimed to align Squirrels’ practices with those of Volaris Group, they did not significantly alter the overall customer experience.
Similarly, on the staff front, the acquisition provided an opportunity for Squirrels to reinforce expectations and enhance accountability among employees. With a renewed focus on performance metrics and a clear delineation of responsibilities, employees were encouraged to elevate their level of commitment and engagement.
Although the transition was not marked by dramatic shifts, employees benefitted from the additional perks and support offered by Volaris, further solidifying their sense of belonging within the larger organization. Overall, the post-acquisition period witnessed a gradual evolution in Squirrels’ operations and adaptation to the new corporate framework.
New Resources Post Acquisition
Since the acquisition, Squirrels has gained access to a wealth of resources provided by Volaris, although the full extent of these resources is still being explored. One area of focus has been the adoption of Volaris’ sales and marketing best practices, which are proving instrumental in amplifying Squirrels’ existing technological capabilities. With a robust and matured technology stack already in place, Squirrels aims to leverage these resources to scale up its products and expand its market reach.
I'm strongly encouraging all employees to complete the Volaris 101 training. It contains valuable insights that can significantly contribute to the company's success and promote professional development for individuals.
We're also working on a new product that will launch this year. It shares similarities with our current offerings but will also introduce us to new verticals.
Future Growth
Looking ahead to the next year, Squirrels is eagerly anticipating several exciting developments and opportunities for growth. Among these prospects is the exploration of potential acquisitions, with discussions already underway. These discussions encompass intriguing possibilities, including the potential acquisition of competitors to bolster Squirrels’ market position or the integration of complementary technologies through tuck-in acquisitions.
Speaking on Volaris to other professional managers or CEOs
For any professional manager or CEO considering selling their company to Volaris, Squirrels CEO, Andrew Gould notes how crucial it is to understand that the process, while lengthy, it is smooth and transparent. From Gould’s experience, Squirrels found that Volaris approached the acquisition with a refreshing level of openness and honesty. There was no sense of exploitation or hidden agendas; instead, the valuation and integration discussions were conducted with integrity and fairness.
Even beyond the acquisition, Volaris remained consistent in their transparency and approachability, fostering a sense of trust and mutual respect. The evaluative meetings, which might have been initially approached with trepidation, turned out to be surprisingly enjoyable and relatable discussions.