Background

Acquirer: US Tech company > $100M
Target: Belgium software company $5-10M, 20-30 employees
Synergy: Foundation for European growth
Contract Type: Due diligence, integration planning, interim leadership

Risks

  • Cultural dynamics combined with English as a second language created a high risk of miscommunication and over-reaction
  • Highly competitive bidding process
  • Sheer volume of due diligence requests was overwhelming to seller
  • Highly regulated labor market and non audited financials created an external and internal complexity that would mean either a lengthy due diligence process of risk of important elements being missed

Solution

Contracted David van Toor to be in Brussels during the due diligence process, focused on:

  • Understanding of the labor market complexities
  • Assistance in meeting due diligence deadlines
  • Single point of contact between query and seller

Post-close David remained as European General Manager for twelve months to:

  • Oversee company and product integration
  • Early strategic hires
  • P&L performance

Outcome

A quality deal was completed that would not have been possible without the day to day nurturing facilitated by on-site presence. Staff transition was smooth due to knowing the complex labor laws. Technology integration was effective due to the deep understanding of both teams' abilities and constraints.

Headcount increased to over 120 within 12 months. The transaction fully realized expected value due to in all areas including:
  • Technology integration
  • Revenue growth
  • Establishing European presence