Helping a Growing IT Company Scale for Sale
Rochester, New York
Client Overview
This information technology business maintained a great base of recurring revenue, and the organization’s owner was a solid, technical subject matter expert.
The Opportunity
Despite the client base and technical expertise, the business struggled to make money due to a lack of operational skills and financial controls. The owner was motivated to sell the business and was starting to see interest from potential buyers, but the operational and financial inefficiencies were in the way to maximizing the company’s value.
The business, that never reported a profitable year, was sold above market for five times sales.
The Solution
RDG+Partners helped the client streamline the internal finance function by adding a finance manager and controller through the RDG outsourced accounting division.
The work of that team was then reviewed by the RDG relationship partner who became the primary advisor to the business owner. A reporting package and process was developed and utilized by an investment banker that was retained by the company to sell the business.
The Outcome
The business, that never reported a profitable year, was sold above market for five times sales. After the sale, RDG+Partners recommended an investment firm that fit the business owners’ situation, implemented strategies to reduce tax on the business sale, and continues to provide concierge service to the high net worth client.