Exclaimer is a leading independent provider of email signature software with 60 employees at its head office in Farnborough and a sales office in the Netherlands. It is a fast growth business gaining traction with its cloud-based software-as-a-service offering. The three owner-managers were seeking to realise some shareholder value whilst also bringing in new insight and expertise to capitalise on the global market opportunity available to the business.
What difference did we make?
We were appointed to review and assess the exit options for the shareholders from both potential trade and private equity investors. At the outset, it was clear that a short-term transition to a cloud-based business model would make Exclaimer significantly more attractive from an external investor’s perspective. Our initial advice was for the business to focus on doing this in order to maximise shareholder value in the short-term, and this was successfully achieved in 2016.
We knew that Livingbridge would be a supportive partner for Exclaimer and invited them to get to know the management team at an early stage.
Management were keen to retain a significant interest in the business, as well as crystallising some of the value they had created to date. We were able to mediate between management and Livingbridge to deliver a ‘partnership deal’, whereby management and Livingbridge retained an equal stake with both parties effectively having joint control of the Board. This enabled management to secure some value at completion whilst retaining a significant opportunity to benefit from future upside potential.