Case
Study
BVRP Software  has acquired  A
buy-side
search for acquisition targets
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The
Situation BVRP Software is based in Paris, France and is listed on the Nouveau Marché of the Paris Stock Exchange. The company designs and publishes communications software. The company also publishes software for mobility, security and Internet applications. BVRP Software products are sold in over 100 countries through e-commerce, OEM partners and IT resellers. Revenues were €43 million. It has subsidiaries in France, Great Britain and the United States. Objective The Response T.V. Metz & Co., LLC was engaged to identify attractive acquisition targets in the United States. We worked closely with BVRP to identify market sectors and types of companies that fit BVRP's growth objectives. In our search efforts we identified 175 companies (over a period of months) in a variety of market segments. We researched each company, overlaying their products and distribution channels with BVRP's requirements. From this initial group, we selected 46 companies that best matched the search criteria and presented them to BVRP. Our documentation and tracking process enabled offices in the U.S. and in France to review, discuss and select the prospects that were most appealing.BVRP selected 17 companies that they wanted us to qualify further. We qualified the candidates through a more in depth analysis of each company. We reviewed their financial situation, customer set, and distribution capabilities. We then arranged meetings and conference calls with potential targets and BVRP's management team. Results One of these target companies, Elibrium LLC, based in San Mateo, CA, possessed many of the requirements that BVRP was seeking. Elibrium was not seeking to be acquired. In fact, the company was in the midst of arranging additional growth financing. As we explored a possible acquisition, it became clear that being acquired by BVRP would give Elibrium access to greater resources and distribution channels. The acquisition offered Elibrium a better alternative than moving forward with a financing transaction. We successfully arranged the acquisition of Elibrium by BVRP. The value of this transaction was about $15 million and both parties were pleased with the outcome. |