When Crisis Hits, Creativity Wins: How One Leader Turned Discounts into a Multi-Million Dollar Exit
When uncertainty strikes, most companies default to the same playbook: cut costs, protect margins, and wait for the storm to pass. It’s a survival instinct—but sometimes, the safest move isn’t the smartest one.
During the pandemic, one cybersecurity company faced exactly that dilemma. Customers’ operating costs were climbing, revenues were falling, and projections showed a potential 40–50% loss of business. The obvious path was to tighten contracts and hold firm on pricing. But one leader – heading partnerships - chose a different route, and it made all the difference.
Instead of meeting with her board to discuss cost reductions, she went straight to the source of revenue: her customers. She called the CEO and CFO of every client, not to sell, but to listen. She heard stories of shrinking budgets, frozen projects, and boardroom pressure to cut expenses. Many customers were weighing whether to renew contracts at all.
For most vendors, this would have been the moment to dig in and protect the bottom line. But she saw an opportunity hidden inside the problem: while budgets were tight now, her clients still needed cybersecurity protection long term. What they needed was breathing room—without losing their trusted partner.
The Creative Contract Shift
The solution she proposed was bold: restructure the deals. Instead of holding clients to their current terms, she offered significant short-term discounts. In exchange, she secured longer commitments, converting standard 12-month agreements into 24- or even 36-month contracts.
This move did three things at once:
Reduced Immediate Churn Risk – By lowering short-term costs, she removed the biggest reason customers were considering leaving.
Increased Customer Lifetime Value – Longer contracts meant guaranteed revenue for years, not months.
Strengthened Trust – Clients saw the company as a partner willing to share the pain, not just a vendor protecting its margins.
The result was transformative. The company not only avoided the projected 40–50% loss, but emerged with a stronger, more predictable revenue stream. That stability - built right in the middle of a crisis - proved invaluable when a year later a major financial firm came calling.
For the acquiring company, those multi-year contracts represented reliable, recurring revenue. In the world of mergers and acquisitions, predictable cash flow drives valuation. What started as a defensive maneuver to keep customers became a strategic asset that increased the company’s attractiveness and sale price.
Why Creative Contracting Works
This story illustrates two key principles that apply far beyond cybersecurity:
Creativity in Deal Structure Can Outperform Price Cuts Alone - Simply discounting is a short-term, often disastrous tactic. Creative restructuring – on the other hand - turns a temporary concession into a long-term win. By asking for extended commitments, you transform today’s problem into tomorrow’s growth driver.
Long-Term Contracts Build Business Value - In normal times, multi-year deals signal customer satisfaction and confidence. In a crisis, they signal resilience. Investors and buyers see locked-in revenue as a hedge against market volatility.
If you’re leading a business - or advising one as a fractional executive - this case offers clear takeaways:
Start with empathy. The leader in this story didn’t push a solution until she fully understood her clients’ challenges.
Think beyond immediate revenue. Sometimes reducing short-term income is the fastest way to secure long-term growth.
Negotiate value for value. If you give concessions, ask for something meaningful in return - like term extensions or expanded scope.
Document the stability you create. Predictable revenue streams not only ease day-to-day operations but also increase enterprise value in the eyes of acquirers.
In downturns, leaders often focus on defense. But this story is a reminder that offense - played smartly - can be the real game-changer. By being creative with contracts and securing longer commitments, this fractional leader didn’t just help her company survive; she helped set the stage for a major acquisition.
When the market gets turbulent, it’s not always the strongest who thrive, it’s the most adaptable.
Question: What’s the most creative way you’ve seen a leader turn a crisis into an opportunity?
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Photo by Anne Gosewehr