The Deal:

Mid-Market Private Equity firm acquired a leader in regulatory supported DEI HR services with an aggressive bolt-on VCA strategy. Target acquired a complementary firm with complex integration requirements.

Target engaged Sabio to plan and manage the comprehensive integration initiative.

 

Sabio Engagement:

  • Conducted an integration planning effort for a recently acquired firm providing a complementary software platform and related services

  • Assessed the acquiring company's readiness to conduct the integration and made recommendations for implementation prior to legal close

  • Provided advice, recommendations and best practices for conducting the integration, including establishment of an integration management office (IMO)

  • Developed a comprehensive technology and operations integration plan/execution roadmap to consolidate all business operations and the underlying technology to support the combined business

  • Developed a high-level estimate of the resources and spend required to execute upon the integration plan/roadmap

  • Assisted both companies in developing a transition plan to address additional human resource needs, additional technology needs and the sunsetting of existing platforms

  • Rationalized both company's existing technology project portfolios and aligned each with the overall integration roadmap

Integration Planning Outcome:

  • Established the IMO and reallocated dedicated resources in order to conduct the integration effectively

  • Made key decisions on resources of the acquired company as to which should be retained, then hired additional resources to supplement the existing teams in line with the integration plan

  • Allocated budget based on estimates developed and proceeded to execute upon the roadmap, which required many planned technology initiatives from both companies to be postponed or canceled outright

  • Incorporated much of the learnings from this engagement into future planned acquisitions, so that they would be able to execute without our assistance

Company successfully completed the integration and consolidation of operations 6 months after the completion of the planning engagement, and succeeded to conduct a subsequent acquisition the following year without our assistance leading to a successful sale by the PE firm for 8x the original valuation.