Growth strategy, UVP support and a transaction process helps SAP partner, Harlex Consulting, sell to SNP Schneider - Neureither & Partner AG

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As the go-to SAP partner for data migration, Harlex Consulting works with clients to plan, manage and deliver complex and often international SAP data migration programmes, managing and controlling risk through their proven best practice methodology and accelerators. After a period of rapid growth, Equiteq was engaged by the client to provide financial advisory services, identifying their unique value proposition and positioning the company to the market as an expert in providing SAP data migration services to clients using their best practice proprietary methodologies. The result was a highly successful sale to SNP Schneider-Neureither & Partner AG, a Frankfurt-listed IT and business transformation consultancy specializing in SAP solutions.

When we initially met Equiteq they advised us on our growth strategy and how to strengthen our UVP. Equiteq's expertise in the IT and M&A arena was invaluable throughout the whole process. Their assistance and knowledge in both the market and the sale process was key in finding the right partner for us and then structuring, negotiating and successfully completing the deal.

Ben McGrail Managing Director, Harlex Consulting

The client’s situation

Founded in 2010, Harlex Consulting was named in the Sunday Times Hiscox Tech Track 100 listing of the fastest growing private technology companies in the UK and it is a SAP gold service partner. The firm uses a proven in-house best practice methodlogy to lead and deliver the migration of business critical data within M&A, carve-out and systems implementation programmes. 

The shareholders wanted to explore a potential sale and engaged Equiteq as financial advisor. They were keen to utilize Equiteq’s expertise and contacts in the IT consulting sector to define and strengthen their value proposition and position the company in the market.

Our approach

Harlex completed a Valuation and Market Readiness Assessment (VMRA) workshop with Equiteq which analyzed the various commercially attractive attributes of the business and identified potential shortcomings and risks surrounding a transaction. Whilst it was clear that there would be a high level of demand for a specialized, market leading consultant with unique IP, work needed to be done on defining Harlex’s unique value proposition. Equiteq ran a number of UVP workshops with Harlex before going to market.

Shareholder exit goals & deal rationale between buyer & seller

As a result of their rapid growth, the management team at Harlex wanted to partner with a larger IT services provider to act as a springboard to launch new services to new clients in new geographies.

SNP were attracted by Harlex’s clear focus on corporate IT transformations as well as their concise and structured project approach. With the acquisition of Harlex, SNP have gained access to an expert team of SAP data migration consultants, an impressive customer base as well as enhancing their presence in the British market.

How did Equiteq deliver value to the client?

• The VMRA workshop completed between Equiteq and Harlex enabled the client to focus its message on their unique capabilities of its best practice methodologies and accelerators driving outstanding levels of project delivery success, and a highly skilled and specialized team of SAP data migration experts.

• The company engaged in workshops with Equiteq consultants to develop and consolidate Harlex’s unique value proposition.

• Using the 8 Levers of the VMRA approach, Equiteq transformed the business from a market leading specialist to a well-sought after target.

• Using their knowledge of SAP consulting, Equiteq worked on demonstrating the value Harlex could bring to a potential buyer. This involved leveraging their best practice methodologies and, through their growth plan, provided a detailed synergy case for the business.

Read the press release on this deal here.

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