Equiteq provided Focus with advice on valuation and guidance on negotiation, leading to a swift and successful completion of a deal with Burford Capital.
The client's situation
Focus is a corporate intelligence firm specialising in asset tracing, litigation support and dispute resolution. Its clients are private practice lawyers, in-house counsel and senior management involved in all types of commercial disputes including litigation, arbitration, intellectual property disputes and white collar crime investigations.
Focus developed a commercial and business relationship with the acquirer Burford Capital prior to the transaction, whilst working on a number of projects together. The combination of Burford’s access to capital and investment expertise with Focus’s high quality professional services provided a compelling integrated service for clients.
With this in mind Burford approached the owners of Focus with a proposal to formally bring them on board. Focus reached out to Equiteq for advice on this proposal seeking a second opinion on valuation and terms in the proposal.
Equiteq’s involvement in the transaction was short and high impact, acting for Focus in a strategic advisory capacity, providing guidance on negotiation tactics, valuation and deal structure. Focus negotiated directly with Burford with our support behind the scenes.
How did this deliver value to the client?
- Equiteq guided Focus to negotiate a significant improvement to the initial deal proposition, using the current financial performance of the business and synergy benefits arising from the deal as leverage.
- Significant future upside was also built into the proposal, using Equiteq’s extensive experience of negotiating earn-outs and other deferred compensation mechanisms.
- Equiteq provided the necessary analysis and validation of the deal, giving the Focus shareholders confidence in their decision to accept the Burford offer without having to test the market. This allowed the transaction to proceed very swiftly, taking 6 weeks from start to finish.