Success Story: Private Equity
At a Glance
Company Profile
- Industry: Tech & Business Services
- ARR: $180M
Challenges
- Company wanted tangible proof on how a PE Firm would add value
- PE Firm wanted to use the diligence process to collaboratively shape the strategic growth plan
Results
- QoR³ identified operating & capability gaps that needed to be addressed to execute the growth strategy
- PE firm learned that a key component
of its deal hypothesis was not embraced by the management team
About The Project
A leading mid-market private equity firm was in the process of due diligence to purchase a rapidly growing company looking to further expand its business in North America. The target company was a leading technology and services provider that helps international companies establish a presence and achieve scale in North America. Services include employer of record, payroll, insurance, and benefits and compliance.
More About
THE FINAL
The Challenge
Results
The acquisition target was engaged with a bank to find a capital partner to further accelerate its growth strategy. Of critical importance to the management team was finding a financial partner who could ‘get their hands dirty’ by providing value-added assistance on go-to-market strategy, resourcing, and implementation. The company had signed an LOI, and SPP was engaged by the PE firm to conduct a Quality of Revenue assessment and help demonstrate to the company how the PE firm would be able to rapidly deliver on its promised assistance to partner and assist growth.
Slate Point Partners operated as a seamless part of the diligence team attending management presentations and performing a Quality of Revenue assessment. The bulk of the evaluated materials were accessed via the data room. Interviews were completed with C-level management and function heads over 2 weeks. In addition to the QoR³ scorecard, the deliverables included recommendations on GTM strategy, commercializing the account management function, and the ideal ‘future state’ org chart. The QoR³ identified a critical gap in company management support and buy-in for a component of the investment hypothesis, which was rectified via the findings and recommendation process.