Many may have wondered if now was the right time to sell a valuable tech company, but Peter and the EY teams took a bold stance that, with many other deals frozen, they would be the one of the only transactions on the market. . As such, they expected to capture a disproportionate level of attention among the target investor group.
Global lockdown measures meant there could be no in-person meetings or presentations to potential bidders – a major hurdle surely. But EY teams used it to create impactful and innovative video materials that sped up and simplified the bidding process. Instead of the usual series of face-to-face presentations with interested parties, EY teams worked with the CEO to create a smooth recording of the company’s presentation, which incorporated answers to pre-submitted questions. Once created, the same presentation can be shared multiple times. “While we believed in our approach, as it had never been done before, we couldn’t be sure we could engage a buyer without meeting the CEO,” says Eric Sanschagrin, Head of Technology Transaction Advisory by EY EMEIA.
Speed and energy were essential. The ability of EY’s teams to draw on the capabilities of the wider organization, with its complementary services, has enabled it to perform the widest range of due diligence (financial, tax, commercial, technological) for his client at an accelerated pace. Each team was project-managed and onboarded to reduce founder load.
In the end, the winning bidder, Francisco Partners, only needed seven days of confirmatory due diligence before signing. This came just four months after Consignor hired EY’s teams, on a valuation of over NOK 1 billion, which equates to EBITDA and revenue multiples at the high end of the range for similar transactions made before the COVID-19 crisis. Peter reinvested a significant portion of the sale proceeds alongside Francisco Partners. The world was still stuck when the deal was signed.