20% Overcommitment in a PE-backed Salesforce renewal
The Challenge
A Private Equity firm had recently acquired a SaaS and the board were about to sign off for a £600k Salesforce renewal. The kind of line item that rarely gets a second look during a transaction.
Before committing, the Operating Partner wanted an independent view and brought in SWAN to review the deal.
At first glance, the headline discount looked reasonable. But the real exposure wasn’t in the discount. It was in the structure of the deal.
Our Asssessment
SWAN independently assessed the proposed renewal, benchmarking pricing, licence utilisation and contract structure against comparable Salesforce agreements. The assessment identified significant commercial exposure:
-
More than 25% of licences showed low or limited utilisation
-
Growth commitments exceeded forecast demand
-
Discounting was inconsistent across product areas
-
Future pricing and expansion protections were limited
-
AI functionality had been introduced without long-term pricing controls
The headline discount looked competitive. The underlying structure told a different story.
The Outcome
SWAN led the commercial negotiation, converting the identified exposure into measurable savings and stronger contract terms. The outcome:
-
20% reduction in the renewal proposal
-
25%+ reduction in unused and underutilised licences
-
Improved discounts across key Salesforce products
-
Pricing protections secured for future growth
-
Greater flexibility over future licence requirements
The business avoided unnecessary commitments and entered the renewal on a materially stronger commercial footing.