Developer/operator: online staffing/recruiting technology

Background Introduced by VCs who were co-investors Company had achieved reasonable top line revenues but due to limited funding and declining IT staffing industry, shifted business model to one with much slower growth High cost of delivering services generated significant cash losses Upside of business seems limited, management performance mediocre Activities Met with company and…

Background

  • Introduced by VCs who were co-investors
  • Company had achieved reasonable top line revenues but due to limited funding and declining IT staffing industry, shifted business model to one with much slower growth
  • High cost of delivering services generated significant cash losses
  • Upside of business seems limited, management performance mediocre

Activities

  • Met with company and developed value propositions and presentation materials for three different vertical markets into which potential acquirers fell
  • Undertook research and identified target list of more than 500 prospective acquirers divided into vertical market
  • Sent out mailing to target list via mail, fax and email
  • Follow up and repeated phone calls
  • Frequent contact and collaboration with company management and board to cultivate and develop interest among prospects
  • Creatively developed new application for healthcare vertical to generate buying interest from public healthcare companies

Results

  • Attracted multiple parties for substantive merger and acquisition discussions
  • Acquisition completed by a publicly traded company