This Canadian technology company offers change management and IT services to clients in healthcare, government, technology integrators, insurance and utilities. Working with Equiteq prior to being sold and using Equiteq’s 8 levers of Equity Value model, the company strengthened the levers which were initially weakest; their market propositions and their sales and marketing processes, leading to a sale in 2015.
The client's situation
Established in the early 90’s, this technology consultancy had grown to around 110 consultants in 24 years. The owners were contemplating a liquidity event but had no transaction experience, so they were seeking expert advice in the run up to the transaction. Equiteq were brought on board to increase both the probability of a sale and maximise the equity value.
As a priority, Equiteq started by interviewing each of the partners to understand ‘who wanted what and when’ and identify their level of alignment for a transaction event.
We ran an initial two day Equity Growth Accelerator (EGA) workshop with the partners, to benchmark the business against the wider industry, map where it wanted to be, and set the timescale. Equiteq then helped the leadership team to focus and prioritise the actions they needed to take in order to achieve these goals.
Over the following 6 months our Client used Equiteq’s 8 lever ‘Equity Growth Wheel’ with on-going consulting support from us to focus on the levers which were dragging their equity value down and to enhance the levers which were driving their equity value up. Within the Client’s offerings, they delivered best practice in program and project management so they quickly absorbed the Equiteq best practice operating model to grow revenue and profits, and hence equity value.
How did this deliver value to the client?
- Our Client made fast progress over 6 months towards best practice in all 8 areas of the Equity Growth Wheel
- Equiteq workshops enabled our Client to have a laser-like focus on target industry sectors
- Enhancements to business development processes enabled an increased return from both existing and new clients
- Equiteq improved the effectiveness of the board across selling, delivery, resource management and people management
- The Client achieved a final sale value of nearly $16m. This comprised both cash and shares, and included an earn out element of just under $2.5m