CLIENT

  • Private equity firm with $6B+ assets under management that invests primarily in technology, services and healthcare industries

SITUATION

  • Client was considering the acquisition of a provider of technology platforms that enable user-generated content. As part of its due diligence, the client wanted to identify and quantify cost-saving opportunities across the target’s service delivery organization and operations

ACTIONS

Waterstone developed a value roadmap for the target’s service delivery organization, based on historical performance, current structure and external benchmarks

  • Analyzed recent financial and operational performance to identify key drivers
  • Prepared for and led function-specific discovery sessions with management
  • Researched competitive benchmarks and external comparisons for operating model and scaling mechanisms
  • Conducted expert interviews for insight into technology usage, improvement capabilities, and change timeframes
  • Identified and quantified potential improvement opportunities, including investments required, ability to execute, phasing / timing, etc.
  • Developed pro forma financial model, showing impact of proposed initiatives on run rate economics

RESULTS

  • Recommended improvement initiatives estimated to reduce run rate costs by 34%
  • Client finalized bid for target and successfully executed transaction