M&A Founder/Owner Valuation Strategy

The Situation

No exit plan for business owner. Toronto-based $1.8M revenue Managed Services owner/President wants to start planning exit to occur in 3 – 8 years. However, change capacity is limited as owner and staff are fully engaged by day-day operations.

The Intervention

Integration Professionals facilitated a series of meetings with management, current advisors, and prospective service providers. We created a portfolio of opportunities with accompanying attributes of cost, difficulty to implement, benefits, and time required. A three-year timeline was developed to make changes in several areas. Several items did not make the cut such as developing AI-based products and upgrading the contact centre management software.

Integration Professionals acted as the central point of contact representing the business owner and set-up cadence of weekly working sessions plus review meetings for each of the workstreams.

Selected initiatives:

  1. Increase revenue and gain operational efficiencies with horizontal acquisition(s)
  2. Upgrade online sales and customer service
  3. Build brand with social media program
  4. Implement ERP for financial reporting
  5. Search for President and Sales Manager 
Project Results
  • Benefits:

    • Completed three acquisitions, consolidating 4 offices into 2, in nine months, growing revenue 5x.
    • Completed website redesign to improve design and functionality. Inbound customer service enquiries dropped 35% by month 3 after launch.
    • Outsourced Facebook, Instagram, and LinkedIn social media campaigns with daily posting on themes of branding, product information, diversity. Initiative took 3 months to complete.
    • Implemented Finance module of (Microsoft Dynamics) ERP software leading to separation of owner and business expenses and significant improvement in organization of books and records.