Guiding a US strategy and regulatory compliance firm through unsolicited approaches from their competitors, resulting in a sale to a global firm

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A leading US business strategy and regulatory compliance firm focused on the asset management and financial services industries had received unsolicited interest from a number of larger competitors and contacted Equiteq to help. Equiteq performed a valuation and modeled various scenarios ranging from a full exit to continued growth, enabling ownership to fully evaluate their options. Equiteq developed a mini-process designed to clarify interest and drive the firm to the best possible outcome. Our client was ultimately sold to a global financial services firm with Equiteq acting as exclusive financial advisor.

The client’s situation

This US regulatory compliance firm had achieved a premium position in the market with an impeccable reputation and the business was experiencing significant growth. Their expertise was well recognized and larger competitors began to take notice. After being approached by several buyers, our client’s shareholders contacted Equiteq to help validate the inbound interest and explore strategic alternatives.

Equiteq's knowledge and expertise of the financial consulting space, and their unique approach to strategic deal alternatives made them an easy choice to represent us throughout the deal process. Equiteq demonstrated their expertise in assessing issues, explaining them and negotiating on our behalf, and we were delighted to have them as part of our team.

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Our approach

Equiteq carried out a strategic review, modeling different scenarios helping the owners to make an informed decision on how best to proceed. A bid defense / mini-process was designed to help drive our client to a premium valuation.

Equiteq’s approach to facilitating due diligence and transaction negotiation helped to maintain optimal positioning of our client throughout the sale process.

Shareholder exit goals & deal rationale between buyer & seller

Combining with a global financial services firm allowed our client to create new business development opportunities and provide clients with a broader suite of complementary service offerings, enhancing their market position.

For the buyer, our client represented a significant increase in the US regulatory compliance footprint, this enhanced their market perception and rounded them out as a true global player in the regulatory compliance sector.

As the private equity owners of the buyer position the business to maximize value in a future exit, this transaction allows them to deliver a well-rounded business benefiting from significant synergies.

How did Equiteq deliver value to the client?

• Equiteq developed a bid defense / mini-process to clarify interest and move quickly once an acceptable valuation was identified.

• Our client was able to proceed with a small group of strategic buyers whom Equiteq had identified as having the most synergy potential.

• Equiteq created competitive tension to maximize value and transaction terms for the benefit of our client, leading to an optimal transaction outcome.

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