• Value of sales & marketing due diligence for turnaround situations

Project Description

Situation

The company had 6 global offices and annual revenue of $90m and had 2 years where its market share had declined.

 

CappcoPartners was retained by a large US multinational who wanted to sell one of its under-performing subsidiaries however the price which was previously offered was too low. The company received a formal bid for the subsidiary which was based on a 7x ebitda multiple. The objective was to sell the within 8 months at a higher multiple.

Objectives

  • Grow revenue by a minimum of 12% as growth over the previous 3 years had never exceeded 4%
  • Launch new products which would reposition the company away from its current back office positioning into the compliance and risk management market
  • Significant grow the size of the pipeline to demonstrate the potential for high growth to the new investor.

Outcome

  • The company was repositioned as a leader in the compliance market
  • Revenue increased by 14% within 8 months due to the launch of 3 new compliance and risk products
  • The company was sold for $90m more than the previous offer 12 month prior