Deal done:
Sale of Telecoms & IT Support Company

Turnover:   £570k
Deal completed in:       6 months

The company

This company was a one-touch source for IT & Telecommunications services including IT network design and support, business communication solutions and audio visual installations.
It had been established for 7 years and had an extremely loyal and varied client base of over 100 contracted customers including global, blue chip PLCs, private equity, law and Government organisations. No one client represented more than 10% of the businesses’ total revenue of £568k (adjusted EBITDA £189k/33%).

The purchase of the business offered the chance for another IT support company to add a strategic acquisition to their portfolio, or for a Telecom company to develop into IT support.

Click here for Business Summary

The situation

The Vendor believed that he had taken the business as far as he could without further investment in the infrastructure.

Both Hornblower and the vendor felt that there was immediate potential to significantly increase sales and profitability through a number of specific channels including: progressively migrating Telephony and IT services onto existed hosted platforms; transferring support services to existing teams of support staff rather than continuing to outsource; expanding the model into geographic locations outside of the M25; selling new products into the existing customers; by increasing marketing, particularly SEO activity and by more aggressively developing the Telecoms service.

What Hornblower did

We launched a comprehensive marketing campaign, targeting specially researched Telecoms companies who we believed would make a good fit, in addition to our extensive database of prospective buyers.

We received almost 80 enquiries, 60% in the first month alone.

Before issuing our full Information Memorandum, each enquiry was qualified to both ensure that our client’s company would be of genuine interest, and that the buyer had the funds available to achieve our target valuation.

Through this process of qualification, we identified and arranged meetings between the client and 5 prospective buyers from which the lead bid was identified which exceeded our target valuation. Within just 6 months of presenting the business to market, a successful sale was finalised.

SOLD – July 2014