Veriforce is a leading provider of fully integrated, SaaS-based operator qualification (OQ), drug and alcohol, safety and insurance, and training solutions across the upstream, midstream, utility, manufacturing, chemical, and construction end markets. The company helps its customers streamline and centralize key compliance requirements, increasing safety for workers and communities while driving efficiencies and reducing costs.
With Veriforce recently acquired by PEC Safety, Managing Directors Mike Wilkins and Erik Szyndlar and Director Brian Titterington – all members of the Harris Williams Technology, Media, and Telecom (TMT) Group – discuss what made the company stand out in this rapidly evolving market segment.
The Gold Standard
For the companies Veriforce serves, the firm’s OQ platform has a proven value proposition, says Wilkins: “These companies operate in highly regulated environments where there is elevated risk. The cost of an incident or non-conformance with regulations significantly impacts the bottom line. Veriforce’s price is minimal relative to the financial and reputational cost of an accident.”
The value Veriforce provides goes beyond its price, explains Szyndlar. “In these highly regulated end markets, operators require solutions that provide visibility across their organizations and into their contracted labor pools,” he says. “That often means operators have to use multiple solution vendors, and connect those external providers with internal systems. To add to the complexity, even when the solution appears to be coming from a single provider, the back-end data is often supplied by a third party, which can cause data integrity issues. All this can impact visibility and increase risk.”
In contrast, says Szyndlar, Veriforce is the “gold standard” of OQ software because it operates as a single end-to-end solution. “Veriforce’s customers can be certain that they have the most comprehensive view of key compliance issues, and that the underlying data is always accurate and up to date,” he says.
Wilkins adds that the Veriforce platform seamlessly integrates with its customers’ enterprise resource planning (ERP) and learning management (LMS) systems, driving even more efficient risk mitigation and communication. Veriforce’s customers see clear value in the power of these integrations, says Wilkins: “Veriforce’s software is critically important to the workflows of its customer base. The company has a very impressive list of long-tenured customers.”
From In-House to Outsourced
One of the most compelling things about Veriforce is its greenfield growth opportunity, notes Szyndlar. “A vast majority of the operator market still utilizes in-house solutions to run their compliance programs, including using offline paper filings and spreadsheets,” he says. “By far, the largest ‘competitors’ in the market are those homegrown solutions.”
Larger organizations with more complex operations are the first to move beyond spreadsheets and adopt software-based platforms like Veriforce. Increasingly, says Szyndlar, smaller organizations are deciding that they too are spending excessive time and resources internally managing compliance, and they are looking to automate their workflows. “Plus,” says Szyndlar, “the benefits of software, such as better reporting and data analysis capabilities, elevate compliance from a check-the-box activity to a strategic decision-making tool.”
Titterington says that the burden of regulatory requirements adds to the impetus for operators to adopt Veriforce software. “Customers are required to ensure compliance with regulations and demonstrate adequate risk management processes,” he says. “With rules and requirements becoming more complex and stringent, it’s difficult for operators to confidently and accurately keep pace with the regulatory environment. Veriforce reduces compliance complexity by automatically pushing updates through its software to its customers in real time. That further cements Veriforce’s value to its customer relationships.”
More regulatory oversight also increases the size of Veriforce’s addressable market, notes Wilkins. “As regulators expand the scope of qualified work and more tasks fall under a regulatory regime, operators are migrating toward automated solutions to manage these risks. In many cases, progressive operators are already adopting best practices that go beyond the current regulatory span of control, and are leveraging Veriforce to help do that.”
As the Harris Williams team affirms, Veriforce typifies the characteristics for which many buyers and investors look. It has a leading position in a highly attractive market, with a talented management team and several near-term growth opportunities. Demand for its solutions is bolstered by a complex regulatory environment that is not showing any signs of abating, and by a value proposition delivered at a fraction of the cost of the accidents Veriforce’s offerings can help prevent.
As Szyndlar concludes, “Veriforce’s best-in-class and comprehensive solution suite, attractive customer base of operators and contractors, desirable end-market dynamics, and scalability qualified the company as a marquee asset and made it a standout acquisition for PEC Safety.”
Published May 2019