Evaluating Investment Thesis with In-depth Information Technology Due Diligence

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As cloud-based storage gained prominence across industries, our client was eager to evaluate relevant investing opportunities. The technology seemed likely to provide a ripe opportunity for growth with companies transitioning their storage practices. Apex Leaders quickly helped our client analyze the merits of their private equity investment thesis with vigorous information technology due diligence.

Unveiling Opportunities in Cloud IT Services Industry

Fully understanding our client’s thesis was integral to the investment process. To begin, our team at Apex Leaders held a consultative intake call that covered all facets of the theory.

Our conversations led us to identify seven key takeaways. Through our comprehensive questions and active listening, our team identified our client’s beliefs, including:

• Cloud IT services offered relevance across industries.
• Investment opportunities existed in the IT consulting industry, managed IT services industry and the IT system integration services industry.
• IT services aligned closely with the client’s Business Service team’s background.
• Our client’s team possessed a well-defined plan to execute success in this sector.
• It would be vital to rely on advice from a strong set of experienced executives.
• It would prove beneficial to prepare several value creation strategies to drive returns.
• The sector provided a wide array of investable targets.

Making the right investment required the right expertise. Our client sought a small team of IT services executives to refine their thesis and implement a winning strategy.

Partnering for Profitable Tech Acquisitions

Finding precise-fit partners for our clients is essential to the dealmaking process. In this case, our client needed several advisors to help throughout the investment journey and IT due diligence process. This included reviewing their thesis, presenting a strategy to a committee for investment approval, navigating information technology due diligence and sitting on the acquired company’s board after closing.

Our client wanted advisors with:

• Deep domain expertise
• Experience at IT services companies
• Background working for IT companies
• Knowledge overseeing IT operations

With this information, our team conducted custom research, recruiting and vetting of potential advisors that met this criterion.

Our search resulted in several introductions, including:

• Current CEO, Everbridge | Previous COO, Rackspace
• Former CSO, Rackspace
• Former EVP and Chief Commercial Officer, Earthlink
• Former VP of US Partnerships, Microsoft (leveraged Microsoft’s devices and cloud-enabled services and solutions)
• Former VP of Global Communications, Luxoft
• Former COO, Bluewolf (leading provider of Salesforce services)

These relationships empowered our clients to effectively identify and acquire a target company. Insights from the advisors were critical to closing the information technology investment.