CASE STUDY
Trilogy Technologies
Succession & MBO
Trilogy Technologies is an IT-Managed Services business that has evolved from a merger of a couple of small technology companies – Team DBA and IT Focus.
IT focus was a small IT-Managed Service business that the owner-manager had built up to a certain level but wanted to step back from the day-to-day management of the business. However, he wanted to continue to participate at a smaller level going forward. The company had a client list of small but successful companies mostly city centre Dublin.
We were aware of a first-class management team that was seeking a management buy-in opportunity that could bring significant value to the business they had connections to larger companies nationally.
First Hurdle | Good Management Team to work with
Due Diligence – Business Planning
We worked with the MBI team to outline a strategy and plan how to reset the business in all aspects from rebranding through to service delivery etc. It was clear that there was a sufficient business that we could add significant value in the short term, and we had full confidence in the team to execute and grow the business in line with a proposed strategy
Second Hurdle | Can we add value to the business and drive further ‘Enterprise Value’
Negotiation
We recognised that the owner-manager wanted to sell most of the business but also to continue for a period of time with a small shareholding to ‘go on the journey’ if the business was to grow. We worked with the owner-manager to provide a solution that fitted his needs and lifestyle by agreeing to a ‘put and call’ arrangement.
Third Hurdle | We now have a willing Seller
Transaction
In this transaction, the focus was all about providing a solution for the Owner manager that was selling and through this a combination of the initial purchase of the equity in the business and vendor finance to facilitate the transaction. In this case, there were a number of shareholders as part of the management buy-in team and so getting a shareholders agreement document in place was a critical step
Fourth Hurdle | Transaction – Funding and Legals in place.
What Now – we own the business
In this case, the management buy-in team was very experienced and was able to impact all aspects of the business in the short term.
- Strategy
- Sales
- Operations
- Finance
Once the business was rebranded and had become an established operation, the management had an appetite to seek further acquisitions which resulted in Trilogy technologies acquiring firstly in London in 2014 and in 2018 acquiring Zinopy Ltd in Dublin. A Cyber Security specialist.
Preparation for Exit
The IT managed service market is going through a period of consolidation and as part of this the Management team prepared the business to be ready for a potential exit. This resulted in Trilogy being acquired by Arkphire Ltd in late 2019. Over the period the company grew in staffing from approximately 20 to 120 and €2m T/O to €20m+.
