Consortium Networks
Consortium Networks
Delivering exceptional results on both sides of a competitive M&A process
Delivering exceptional results on both sides of a competitive M&A process
A successful exit for the owners followed by a smooth transition of CEOs and new Private Equity ownership
Having Emmett join our team as our CFO was one of the best strategic and operational decisions we made and I don’t believe we would have been as successful without him
Overview
Consortium Networks, a trusted Cyber Concierge, helps clients tackle complex cybersecurity issues. Founded to revolutionize the field, Consortium connects and educates the community on cybersecurity risks, technology, and networking. Their innovative approach positioned them for significant growth and new opportunities.
Challenges
PRE-SALE CHALLENGES
- No CFO & barebones FinOps
- Entering a competitive M&A process
- Need for Financial Modeling, Reporting, KPIs, Due Diligence, Quality of Earnings, Transaction expertise, and Negotiation support.
POST-SALE CHALLENGES
- Transition of CEOs and ownership
- Develop Year 1 Budget and 5 Year Strategic Plan
- New Private Equity, Lender, BOD reporting and GAAP requirements
- Establish internal finance function.
Goals
Consortium Networks aimed to prepare its financial data to be market-ready and attractive to potential buyers. The owners sought to enhance their strategic and financial operations bandwidth and expertise to ensure a successful M&A process. Specific goals included:
- Ensuring readiness M&A process
- Developing new Financial Models, Reporting, Quality of Earnings, KPI analysis
- Assistance with Transaction Negotiation
- Providing C-level support during transition to new Private Equity ownership and onboarding a new CEO
- Increasing the robustness of financial operations
Achieving these goals would position Consortium Networks for a successful exit and transition to private equity ownership and sustained growth.
Solutions
TechCXO provided comprehensive CFO services to Consortium Networks, ensuring a successful exit in a highly competitive M&A process. Services included Quality of Earnings & Due Diligence Support, Transaction Negotiation, and the implementation of Strategic Finance Best Practices. TechCXO’s support encompassed KPI development, Financial Modeling, Crafting a Year 1 budget & 5-year Strategic plan, Completing the first GAAP audit, Establishing an Internal Finance Function, all while Facilitating a smooth CEO transition.
Outcome
M/C Partners, a private equity firm focused on small and mid-size businesses in the Digital Infrastructure and Technology Services sectors, acquired Consortium Networks. TechCXO’s strategic and operational support enabled Consortium Networks to develop robust finance and accounting systems, processes, and infrastructure. Their M&A Transaction Support ensured that the sale price accurately reflected Consortium Networks’ true value. Six months following the acquisition by M/C, TechCXO facilitated a transition to a full-time CFO.
Successful Exit
Facilitated a smooth, competitive M&A process, resulting in a successful exit for the owners
Post-deal Integration
Successful transition of CEOs, significant strategic and operational enhancements, internal finance function established, GAAP compliant
Choosing Emmett and the TechCXO team was essential for enhancing our company’s value in our sales process. Emmett’s expertise and deep understanding of our business offered both our current management and prospective buyers an exceptional financial perspective. Working with Emmett was not only highly productive but also enjoyable, and I’ve subsequently appointed him as CFO for my current venture (Metrics That Matter) and wouldn’t consider selling another company without his guidance.
- Larry Pfeifer Founder of Consortium Networks
