Equiteq advises Microsoft integration consulting firm, Mexia, on their transaction with Deloitte

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Mexia offers Microsoft integration consulting, cloud, infrastructure and managed service solutions. The business had successfully grown for 10 years but still had ambitious growth objectives. Mexia engaged Equiteq to assist them with assessing their exit options and preparing the business for a transaction by conducting an EGA benchmark. A year later, Equiteq was appointed as Mexia’s exclusive advisor and the deal concluded with them joining Deloitte.

“Equiteq has been instrumental in assisting Mexia with the transaction, from preparation of the business, to the management of the process, and right up to completion. I am very pleased to have had them assist in making this deal possible.”

Dean Robertson CEO, Mexia

The client's situation

Mexia’s majority shareholders, Dean Robertson and Mathew Coleman, had been successfully growing the business for 10 years. The company was a highly regarded Microsoft integration consultancy, and a multi-award winner; winning Microsoft’s Country Partner of the Year award, a BRW Fast 100 winner 3 years in a row and named as a Best Place to Work 3 years in a row. The company understood that while its organic growth plan was achievable, to accelerate into the next stage of growth it would need assistance from a larger organization.

Our approach

An initial advisory review was conducted to better understand the company and the steps required before a potential transaction. From this an EGA benchmark and marketing workshops were conducted, and a business plan produced, resulting in the recommendation that the business should begin a transaction process to a firm looking to add or bolster strong Microsoft competencies and leverage well developed IP and methodologies to create significant synergies.

During due diligence with Deloitte the aim was to be as efficient as possible so that the shareholders were not distracted from the daily operations of the business. The result was a process that minimized additional workload for the shareholders and leveraged Equiteq’s industry and commercial knowledge to maximize achievement of shareholder aspirations.

Shareholder exit goals & deal rationale between buyer & seller

After 10 years of running the business Mexia’s two majority shareholders sought liquidity, and enhanced career opportunities for their staff.

The deal gave Deloitte the chance to gain a reputable name in the Australian Microsoft ecosystem and bolster its platform integration capability, while giving Mexia the opportunity to accelerate business growth through additional client support and sales capability.

How did Equiteq deliver value to the client?

Equiteq was the trusted advisor to the shareholders of the business, providing sound advice through all sale stages from preparation through to closing.

  • Equiteq ran an EGA to identify the key operational pain points of the business and to prioritize and target areas for improvement
  • Once a sale process had begun, we leveraged our buy-side and sell-side sector experience to advise Mexia on the opportunities and challenges of potential buyers, and how to extract the most value
  • Once exclusivity was agreed with Deloitte, we negotiated a structure that best aligned with shareholders’ interests
  • We maintained deal momentum and minimized the amount of distraction that the process caused for shareholders, allowing them to focus on winning and delivering business

 

 Read the press release on this deal here.