Acquisition Advisory

Fundless Sponsor Acquires Network Service Provider

Challenge:

Veteran technology executive sought to acquire a company to scale.  Sought to identify company, find funding to complete transaction, and retain equity for his efforts.

Solution:

A focused buy-side process was run to evaluate targets that fit the profile and characteristics sought by the client:

  • Identified and approached 20 companies; narrowed to three bonafide prospects; quickly entered into letter of intent with one
  • Packaged opportunity for presentation to 12 private equity groups and family offices
  • Management meetings with five, negotiation with two, term sheet agreed with one
  • Negotiated capital stack with reserve equity for executive on pari passu basis
  • Negotiated transaction terms, working closely with legal counsel to properly document
  • Successfully closed within 6 months of project inception

Result:

Successful completion of transaction was achieved with a value of 6x EBITDA of the target company.  Client and sponsor continued to build upon platform acquisition, completing four follow-on transactions in the subsequent two years, creating a fully integrated Network Service Provider employing over 200 professionals and surpassing $100mm revenues.

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