Founded 15 years ago, Efficio works with clients across the world to help them achieve breakthrough results in their procurement functions. With revenues of over £30 million, the firm achieves sustainable results for its clients by helping them to identify, deliver and sustain benefits in procurement. Efficio currently has around 250 employees based in offices in Europe and North America, as well as its London headquarters. The business has grown quickly in the last few years and the founders were keen to bring in an investment partner to support further international development as well as assisting with the ongoing maturation of Efficio’s non-consulting services.
The company now offers a much broader spectrum of services than traditional procurement consulting - a long term managed services business, which now accounts for a third of revenues, and eFlow, a suite of best-in-class procurement technologies that help clients to manage and sustain benefits over the long term. The business model is evolving into a tech-enabled services model with a consulting front end. To date it has undertaken projects across six continents in more than 30 countries.
What difference did we make?
Livingbridge asked Catalyst to advise on the buy-side owing to our experience and credentials in the consultancy market and working with management teams with international expansion plans. Our M&A role encompassed advising Livingbridge on bid tactics, deal structure and entry pricing up until the point where they had won exclusivity. Catalyst then sat alongside the Livingbridge team supporting on all aspects of the deal, project managing the transaction, challenging the vendor due diligence, assessing the commercial impact of the complex multi-jurisdiction tax arrangements, and preparing an exit paper to support the Livingbridge investment case. We also advised on raising the debt to fund the transaction, negotiating the appropriate debt package and covenants with the selected banking partner.
We assisted the management team to produce a comprehensive growth plan supported by a detailed operating financial model to underpin the investment and banking process. In particular, the business plan looked at how the business mix evolved between the core procurement transformation consulting business and the managed service offering, as well as the potential impact of the new technology offering. The plan looked closely at the evolution of the international business, in particular in North America.