CLIENT

  • Top-tier private equity firm with approximately $9 billion in committed capital, evaluating a multi-million dollar enterprise communication software provider

SITUATION

  • Client engaged Waterstone to perform an acquisition diligence focused on the target company’s Professional Services, Maintenance and Cloud businesses.
  • Waterstone was tasked with evaluating the target company’s current performance, underlying performance drivers and intrinsic risks while ultimately developing a high level go-forward improvement plan.

ACTIONS

Waterstone conducted acquisition due diligence assessment on target company and developed a 3-year improvement roadmap.

  • Developed a fast turn-around initial operational and financial analysis of target based on preliminary disclosures
  • Prepared for and led Professional Services management interviews
  • Developed an operational and financial model for the PS business, containing both current-state assessment and 3-year go-forward improvement opportunities
  • Built an operational P&L for PS business, with flexible drivers to identify and model go-forward improvement activities and impacts on margin
  • Developed 3-year go-forward improvement plan for target company’s PS business

RESULTS

  • Waterstone analysis was used to feed into the valuation model and shared with key lenders