Asset Divestment Online Auction: Case Study

In today’s rapidly evolving digital landscape, online auctions have become an innate tool for businesses and organizations to buy and sell assets efficiently. One recent success story comes from our collaboration with Syddansk Innovation (SDI). It is a Danish company with a mission to support and invest in start-ups on behalf of the Danish state. With Helge Holm-Larsen, the CEO of SDI, we discuss SDI’s experience using Merkeleon’s auction software and how it has revolutionized their operations.

New Direction for SDI

For over two decades, SDI has played a crucial role in the Danish entrepreneurial ecosystem, investing in promising start-ups and nurturing their growth. Times change, and so do the needs of the state. The Danish government has decided to shift its focus. As a result, SDI was tasked with divesting shares and loans in the companies they had supported. This marked a changeover in their operations, requiring a new approach to maximize the value of these assets.

Helge Holm-Larsen explains, “SDI has decided to use the Merkeleon platform to get better exposure and prices for these shares and loans.” This decision paved the way for a fruitful collaboration between SDI and Merkeleon.

Finding the Right Solution

When it came to finding the right online auction software, SDI explored several options. Holm-Larsen shares, “We checked out a handful of options before we decided on Merkeleon. With Merkeleon, we felt we got the best value for our money.” This decision proved to be a pivotal one for SDI’s divestment strategy.

One of the standout features of the Merkeleon-built platform Helge highlighted was its ability to digitize the normal negotiated deal. This transformed the SDI’s approach, inviting more buyers, speeding up the process and providing quality documentation.

Goals and Challenges

SDI had a clear goal in mind when they initiated this journey. The CEO of SDI shares, “The goal was to divest the shares and loans in about 10 portfolio companies through the Merkeleon-driven platform over the next 3-6 months.” This ambitious target would not come without challenges.

One of the primary obstacles SDI faced was ensuring compliance with regulatory conditions during the divestment process. Unlike traditional closed deals, Merkeleon offered an innovative solution. It helped SDI document that these regulatory conditions were fulfilled, providing transparency and peace of mind.

Helge also highlighted another critical difficulty – the lack of tradition in trading shares and loans in this manner. Traditional stock exchanges could be an option, but they came with high costs, not justified for SDI’s divestment goals. The Merkeleon software, complemented by SDI-developed functions, was a cost-efficient transparent solution for this situation.

Customization for SDI

SDI identified unique customization needs. And our software’s adaptability and versatility came to the rescue. In collaboration with Syddansk Innovation, we customized our auction platform to meet their goals. This is what we did.

Start Page

• Editable Top Section. We introduced an editable field at the top of the start page. This field allows SDI to insert images, text and links, providing them with the flexibility to showcase essential information prominently;
• Main Category Listings. Below the editable field, we added a section for displaying the main categories. This ensures that users can quickly navigate to their areas of interest;
• Streamlined Start Page. To align with SDI’s requirements, we removed the listing of auctions from the start page, creating a cleaner and more focused user experience;
• Enhanced Navigation. We revamped the top menu, introducing menu items that link to specific pages on the auction site. In mobile view, these menu items are conveniently placed in the burger menu, optimizing the site’s responsiveness;
• Additional Pages. To cater to SDI’s needs, we added new pages to the auction site, including Terms & Conditions and Apply for Data. Importantly, we ensured the ability to translate the names of these pages within the menu, enhancing accessibility for a diverse audience.

Category Page

• Dynamic Content Placement. On the category pages, we provided SDI with a dedicated space at the top to enter text, links and images. This content placement can be customized without any upper size limit, allowing SDI to provide context and guidance above the category’s auction listings;
• Custom Content Options. We offered two customization options for this section. It can either be a single HTML field, providing complete flexibility, or an image field paired with a text field side by side for a structured display.

Payment Process

• Paid Role Enhancements. To improve the user experience for paid roles, we disabled lot payment via the integrated payment system (Stripe). This simplifies the bidding process for users with paid roles;
• Efficient Workflow. After a user with a paid role wins an auction lot, our customization ensures a seamless redirection to the user’s account. This streamlines the post-auction process, making it more efficient and user-friendly.

Looking Ahead

As for the future, the CEO mentioned, “SDI does not have further plans in this direction right now, but we will offer sister organizations access to our platform if there is any interest.” This openness to sharing their successful experience with Merkeleon speaks to the potential for collaboration and growth in the auction industry.

Our partnership with SDI accentuates the power of innovative online auction software in transforming traditional processes. Our team has enabled SDI to navigate a complex divestment journey successfully while ensuring compliance, transparency and cost-efficiency. Merkeleon will support SDI and look forward to working with more partners to enhance our system.

We extend our sincere thanks to Helge Holm-Larsen, the CEO of SDI, for sharing his insights and experiences with us. Together, we are shaping the future of online auctions and marketplaces.