Background
- Introduced by VCs who were co-investors
- Company had achieved reasonable top line revenues but due to limited funding and declining IT staffing industry, shifted business model to one with much slower growth
- High cost of delivering services generated significant cash losses
- Upside of business seems limited, management performance mediocre
Activities
- Met with company and developed value propositions and presentation materials for three different vertical markets into which potential acquirers fell
- Undertook research and identified target list of more than 500 prospective acquirers divided into vertical market
- Sent out mailing to target list via mail, fax and email
- Follow up and repeated phone calls
- Frequent contact and collaboration with company management and board to cultivate and develop interest among prospects
- Creatively developed new application for healthcare vertical to generate buying interest from public healthcare companies
Results
- Attracted multiple parties for substantive merger and acquisition discussions
- Acquisition completed by a publicly traded company