The Epic of Gryphon Citadel – The Siege of Disruption

In the fast-paced kingdom of commerce, where innovation is both a savior and a scourge, even the most promising ventures can struggle to keep their heads above water. NewForge, a young software company founded by sisters Alexia and Emily Spencer, is a prime example. Their company had developed a state-of-the-art platform to upskill personnel across various industries, a tool that could revolutionize workforce development. Yet, despite the innovation and potential of their product, NewForge was teetering on the brink of collapse, a stark reminder that even the most promising ventures can face significant challenges.

The company’s go-to-market (GTM) strategy was at the heart of its problems. Confident in their approach, Emily Spencer believed that their strategy—centered around using Value-Added Resellers (VARs) for software license distribution—was sound. The strategy was deeply embedded in all their marketing materials, reflecting a belief that this method would enable rapid scaling and penetration into diverse markets. However, the reality was far different. Gryphon Citadel called in to assess the situation and quickly recognized that the GTM strategy was flawed and outdated. The messaging was off-target, the pricing did not reflect the product’s actual value, and the reliance on VARs, due to the nature of the software, inherently ate into the resellers’ profits, making the distribution model unsustainable.

To compound these issues, NewForge was financially constrained by secured lending facilities, which limited its operational flexibility and frustrated its investors. Alexia and Emily, the original visionaries behind the company, had lost ownership and now struggled to steer the company back on course under the oversight of a board of directors more focused on financial metrics than innovation or market leadership. The board, composed of seasoned industry professionals and investors, was responsible for setting the company’s strategic direction and ensuring its financial health.

The Call to Action

Merlin Harrington, the Managing Partner of Gryphon Citadel, sat in his office, surrounded by reports and financial statements that painted a grim picture of NewForge’s current situation. The company’s sales were sluggish, debt was piling up, and the leadership team—once dynamic and driven—struggled to maintain control of their creation. Yet, amid the gloom, Merlin saw a glimmer of hope. NewForge’s product was robust, with the potential to dominate the upskilling market, particularly in its ability to help organizations avoid costs associated with training inefficiencies. The market was ripe for such a solution, and with the right strategy, NewForge could turn the tide, instilling a sense of optimism in the audience.

Merlin knew that understanding the full scope of the problem required more than just reading reports; it required direct, candid discussions with the founders themselves. He called on his trusted team—Sam Ward, Carter Cole, and Theo Sinclair—to join him in confidential meetings with Alexia and Emily Spencer. The goal was to delve deep into NewForge’s challenges, uncover the root causes of their struggles, and determine the best path forward.

Understanding the Problem

Over several days, Merlin, Sam, Carter, and Theo engaged in intensive discussions with Alexia and Emily Spencer. The meetings, conducted under strict non-disclosure agreements (NDAs), allowed the Spencers to share their frustrations and fears without reservation.

“We built NewForge with a clear vision and strategy,” Emily explained during one of the calls. “Our GTM approach focused on VARs was supposed to enable us to scale quickly and efficiently. We refined our messaging and aligned our marketing materials with that strategy. But now, it feels like we’re just spinning our wheels.”

Carter Cole, who had extensive experience with software industry GTM strategies, listened carefully before responding. “Emily, your product is undoubtedly strong, but its positioning in the market is not aligned with its true strengths. The reliance on VARs is problematic because the software, by its very nature, reduces their margins. This makes it difficult for them to justify pushing your product over others that might offer them better returns. Additionally, your messaging focuses too much on scalability when, in fact, cost avoidance is the real value proposition your product offers.”

This was a tough pill for Emily to swallow. She had been sure their GTM strategy was right, but Carter’s analysis was impossible to ignore. The approach that was supposed to catapult NewForge to success was dragging it down.

“So, what do we do?” Alexia asked, her voice tinged with frustration. “How do we fix this?”

Merlin, who had been quietly observing the exchange, stepped in. “First, we need to reframe how you’re positioning your product in the market. The messaging and pricing must reflect your value—helping organizations avoid significant costs through efficient upskilling. We’ll need to move away from the VAR model, as it’s not sustainable for this type of software. Instead, we should explore alternative direct channels that align better with your product’s value proposition.”

Theo Sinclair, Gryphon Citadel’s seasoned advisor, added his perspective. “The board needs to understand that this isn’t just about adjusting a few tactics; it’s about realigning the entire strategy. The current approach isn’t just inefficient—it’s undermining the very strengths of your product. Without a strategic realignment, no financial oversight will save the company.”

Sam Ward, focusing on the leadership dynamics, emphasized the importance of the founders regaining control of the narrative. “Alexia and Emily, you must be at the forefront of this realignment. Your vision created NewForge, and it’s that vision that will drive its turnaround. But you’ll need the board’s support to make the necessary changes, and that means presenting them with a clear, compelling plan that addresses both the strategic and operational flaws.”

The Spencers nodded, absorbing the brutal truths being revealed. They knew a significant shift was needed, but they also understood that convincing the board to back such a plan would be a formidable challenge. The board was more focused on financial metrics than innovation or market leadership, and they were likely to resist a plan that required significant changes to the company’s strategy and operations.

Drafting the Letter of Intent

After these intense discussions, the Gryphon Citadel team gathered to draft a letter of intent (LOI). The LOI would be a pivotal document outlining Gryphon Citadel’s intention to conduct due diligence on NewForge, with the possibility of investing in or acquiring the company. The LOI would also lay out a comprehensive plan to realign NewForge’s strategy, operations, and leadership.

“We need to be crystal clear in this LOI,” Merlin said as they began drafting. “It has to show that we see the potential in NewForge, but it must also be firm about the changes that need to happen for that potential to be realized.”

Carter, who was now focused on the GTM strategy and the value proposition of the software licenses, contributed his insights. “The LOI should explicitly address the flaws in the current GTM strategy. We must clarify that the VAR model is not viable for this product and that the messaging needs to shift from scalability to cost avoidance. The board has to understand that these changes are non-negotiable if they want to see any return on their investment.”

Sam added, “We should also emphasize the importance of leadership realignment. Alexia and Emily must be positioned as the visionaries capable of driving this turnaround. The board needs to trust them to lead, but that trust has to be earned through a solid, strategic plan.”

Theo, with his wealth of experience in corporate strategy, advised, “We need to outline the due diligence process in detail. The board will be wary of any plan that seems too ambitious or risky, so we must show them that our approach is grounded in a thorough understanding of the company’s current state and potential for future success.”

As the LOI took shape, the team worked meticulously to ensure that every aspect of NewForge’s situation was addressed. The final document was a comprehensive blueprint outlining Gryphon Citadel’s intentions and the steps they would take to evaluate and potentially realign NewForge. It also clarified that significant changes would be necessary for the company to achieve its potential.

The LOI was completed by the end of the day. The next morning, it was sent to Alexia and Emily, who would present it to the board.

The Board’s Decision

The days leading up to the board meeting were filled with tension. The Spencers knew that the outcome of the meeting would determine not just the future of NewForge but also their roles within the company. They had built NewForge from the ground up, but now they were fighting to keep their vision alive in the face of mounting challenges.

When the board meeting day arrived, Alexia and Emily presented the LOI to the directors. They emphasized Gryphon Citadel’s expertise and the thoroughness of the proposed due diligence process. They also stressed the need for a comprehensive realignment of NewForge’s strategy, particularly the shift away from the flawed VAR-based GTM strategy and the repositioning of the product around its actual value—cost avoidance.

Despite their passionate presentation, the board’s response was lukewarm. The directors acknowledged the seriousness of the situation but were hesitant to relinquish control to an outside firm. Even with the founders leading the charge, the prospect of a full-scale restructuring was more than they were willing to consider at that moment.

After the meeting, Alexia called Merlin to deliver the news. “They’re not ready,” she said, her voice heavy with disappointment. “The board isn’t willing to give us the control to make this work.”

Merlin listened quietly before responding. “I understand, Alexia. This isn’t the outcome we hoped for, but we’re not giving up on you. If the board doesn’t come around soon, they’ll be back—and we’ll be ready when they are.”

A New Opportunity

As the Gryphon Citadel team regrouped, it became clear that the work with NewForge was far from over. The board’s decision had delayed the process but hadn’t ended it. The door remained open for future negotiations, and the team knew they needed to stay prepared.

Meanwhile, another opportunity was emerging that had nothing to do with the software industry but was equally significant. Whale Petroleum, one of the top three oil and gas producers, had approached Gryphon Citadel with a proposal to develop a unique AI platform to optimize their operations. The massive project transformed how the company operated and positioned Gryphon Citadel as a leader in AI-driven solutions for the oil and gas industry.

Carter Cole, who had extensive experience in the oil and gas sector and had previously worked with Whale Petroleum, was already deep into the preliminary analysis. The project would require technical expertise and a deep understanding of the industry’s unique challenges and risks. For Carter, this was an opportunity to apply his expertise in a new context, leveraging his knowledge of AI and the oil and gas industry to deliver a solution that could have far-reaching implications.

As Merlin reflected on the events of the past weeks, he felt a renewed sense of determination. The challenges with NewForge were significant, but they also opened new doors and presented new opportunities. The world of commerce was constantly shifting, and Gryphon Citadel needed to remain agile, ready to guide their clients through whatever storms lay ahead.

As the team prepared to move forward with the Whale Petroleum project, Merlin knew that the epic of Gryphon Citadel was still being written. There would be more battles, victories, and stories to tell. Through it all, Gryphon Citadel would stand as the guardian of enterprise, guiding its clients through the storms of change and into the future.