Client Challenge: FMI Group is a brand engagement company founded in 2009. The owner, John Fisher, was looking to build value into the company ahead of an exit in 6-7 years’ time.
Approach: We identified that organic growth in the current economic climate is difficult, so we looked at areas that could speed up that growth. Incorporating a mobile apps development capability was seen as a key strategic growth driver and doing so by acquisition would bring immediate credibility to the company’s offering. It would also bring intellectual property into the business and thus help to build greater value into the exit price.
The search for suitable companies took six months and having identified Red-C a mobile apps developer based in London’s “Tech City” as an ideal fit. We negotiated the deal, assisted with the fund raising and managed the due diligence process and the contract. We assisted with the commercial and financial due diligence and preparation of the financial and business case for the acquisition.
Outcomes (after 15 months):
The deal completed to the satisfaction of the acquirer and the vendors.
Part of the consideration was a structured earn-out based upon future profitability. All targets were met and the full earn-out paid to the satisfaction of both sides.
“Peter Kroeger did an excellent job both in finding the prospect and engineering them through what must have been a very alienating process for them. His attention to detail also provided a much needed solid base for documentation going forward. Even with the prospect of your client dying mid-process you just carried on and kept the pot simmering. It was a very enjoyable experience, so thanks for being such good company.” John Fisher, CEO FMI Group