Sale of IT Support & Cloud Services Provider
The Company
The company was a provider of fully managed IT Services, Cloud and Enhanced IT Solutions including Project Management, Business Intelligence, Software Solution advice and Telephony.
With a strong team of management and staff led by a highly experienced MD, the company had been achieving aggressive YOY revenue growth (57% to June 2013), with a projected turnover for following year of £2.1m.
The business had over 150 clients, predominantly from the legal, finance and recruitment sectors, all on 3-year support contracts ranging from 5-140 PC users, and together they contributed to over 70% of the annual revenue.
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The Situation
The sole owner of the company played a passive role in the day to day business, and wished to exit in order to focus on other business interests.
The vendor strongly believed that the company would be better served and more able to reach its full potential, under the ownership of a larger company from the same market. A company which could share its operational and strategic resources to make its new business arm stronger.
What Hornblower Did
After directly approaching our extensive network of buyers in the IT support sector, we were able quickly to generate in excess of ninety sales enquiries, eight of whom submitted offers meeting our expectation on valuation.
We organised individual meetings between these potential buyers and the vendors and then negotiated a number of offers.
Having established the market value for the business we were able to negotiate the best deal value and structure for our client.
After the preferred buyer, a large Telecoms company was chosen, we proceeded in drawing up the Heads of Terms document giving the lawyers clear direction for the objectives of the deal, and continued to manage the transaction process until completion.
The transaction was completed with the sale of 100% of the shares and the MD stayed with the business and took up a very senior position within the buyers business.
It took us just 6 months from appointment to completion.
SOLD - September 2014
