February 2013 Since Intuitus was founded ten years ago, the company has gone from strength to strength with our tenth year being our most successful to date. 2012 saw us supporting more deals and a greater number of investors as well as broadening our management team and consultancy network.
Intuitus provided IT due diligence advisory services in support of 59 buy-side transactions for private-equity in 2012. Here is a selection: INVESTEE
INVESTEE BUSINESS
DATE
Instant Offices
Flexible office space provider
Dec-12
SR Group
Legal services recruitment firm
Dec-12
Despite the challenging times, our team provided IT and technology due diligence services for 72 transactions – up 44% on what was for us an excellent 2011. These included 59 buyside engagements for private equity (of which 40 completed), a further 12 M&A transactions and one sellside engagement.
Premier Hytemp (from Murray Group)
Provider of supply chain services and Nov-12 engineered alloys to the oil and gas sector
Sohonet
Connectivity and data management services for the media and entertainment industry
Nov-12
CognoLink
Global independent research firm
Nov-12
In addition, we have seen increased demand for our portfolio support services, supporting more management teams last year than ever before as they seek to optimise operational performance. A cross-section of our portfolio support work is provided on page 3.
Thomas Gunn
Marine navigational products and services Nov-12
Pizza Hut (UK) (from Yum!)
Casual dining business
Nov-12
Trademob
Provider of mobile application marketing services
Oct-12
Investis
Provider of digital corporate communications for public companies
Oct-12
Broadbandchoices. co.uk
UK provider of home communications price comparison services
Oct-12
Air Energi
Specialist manpower services to the Oil and Gas industry
Oct-12
Workshare and Skydox
Document collaboration software provider / Cloud-based file sharing and collaboration service provider
Sep-12
Explore Learning
After-school tuition for primary school children
Aug-12
Metronet
Provider of hybrid wireless and fibre Internet services
Jun-12
SecureData Europe
A specialist IT security provider
Jun-12
We reflect with interest on our first ten years: 349 transactions supported, including 311 buy-side engagements for 70 private equity investors. 27 private equity-backed M&A engagements and 11 sell-side engagements. At the outset Intuitus was an occasional transactionrelated IT adviser but today we have wide-ranging IT and technology expertise and our portfolio support work represents a hugely important 40% of our business. Our private equity clients welcome our ability to offer continuity beyond the initial transaction, right through to exit, if required. Intuitus offers expert IT and technology advice throughout the investment life-cycle. What hasn’t changed, though, is our dedication to the private equity sector and our focus on quality of service. And we remain ever mindful of the need to provide incisive, technical expertise matched by strong sector and commercial awareness. We look forward to the next ten years. We thank all of our clients for trusting us and we send you our very best wishes for a successful 2013.
INVESTOR
Molinare TV and Film A post-production business for TV and film
www.intuitus.co.uk
Jun-12
Transaction Support Services
Buy-side engagements for private equity, continued: INVESTOR
INVESTEE
INVESTEE BUSINESS
DATE
BigHand
Developer of digital dictation workflow systems
May-12
Just-Eat
Online marketplace that allows consumers to order take-away food for home delivery from a broad range of restaurants
Apr-12
Brand Addition
Provider of branded merchandise products in support of corporate marketing activity
Mar-12
Vodat
Voice and data telecoms service provider
Mar-12
Audley Travel
Luxury, tailor-made holidays
Mar-12
Gall Thompson
Manufacturer of safety and environmental protection products for the oil and gas industry
Mar-12
Debt Line (from Richmond Group)
Debt management services
Feb-12
CreditCall
Processor of credit and debit card payments and software development of EMV® kernels
Feb 12
Workplace Systems
Developer of workforce management solutions
Jan-12
GCI Com
Provider of telecoms and data services
Jan-12
Our buy-side services advise an investor at the point of entry, not just in terms of risk assessment but also with regards to pragmatic recommendations for improving the operational performance of the target company. Our portfolio support services are designed to add further value to the portfolio company, and hence to the investment itself, as it strives to deliver its business plan. And we can provide exit readiness services to assist a portfolio company ahead of sale.
Support through the investment life-cycle - a case study LDC and learndirect
And we supported the following completed M&A transactions in 2012: CLIENT
As a trusted IT adviser, Intuitus is dedicated to the private equity sector and we offer full investment life-cycle support:
CLIENT BUSINESS
TRANSACTION
DATE
Online learning provider
Merger with JHP Group, a provider of work-based and job-seeker training
Nov-12
World’s leading manufacturer of agriculture scales & weighing equipment
Acquisition of RDS Technology, a manufacturer of instrumentation for the mobile machinery industry
Nov-12
A leading global engineering and construction partner for technology-based clients
Acquisition of Senior Hargreaves, a provider of air movement and ventilation ductwork solutions
Oct-12
B2C marketplace for ordering take-away food for home delivery
Acquisition of SinDelantal (Spain), a competitor business
Oct-12
Gaming group
Acquisition of Botsphere, an automated trading solutions provider for gaming businesses
Sep-12
Insurance solutions provider
Acquisition of Simply Landlord, a specialist insurance provider for landlords
Jun-12
LDC invested in learndirect, the UK’s leading provider of online learning, in 2011. Intuitus was engaged to provide buyside advice for LDC. Post-completion, our consultants have been working with learndirect’s executive team as they guide the organisation through the changes associated with moving from charitable trust to commercial company. “There is no doubt that LDC has derived real value from Intuitus’ engagement. Their findings and recommendations during the due diligence phase have turned out to be very accurate and their on-going strategic support has been invaluable to learndirect’s executive team.” Ken Hills Head of the Value Enhancement Group, LDC.
“Working with Intuitus, both during the IT due diligence and post investment, has added significant value to learndirect’s journey...to commercial company under private equity ownership. Using their board level team to help us identify our key technology strengths, risks and opportunities has been invaluable. Post investment, the real benefit of working with Intuitus is their... ability to translate business requirements into a pragmatic IT approach. With their advice we have been able to reduce the cost base by consolidating and renegotiating some key contracts, and align the technology platform and strategy to our new growth agenda.” Gill Craven, Director of Service Operations, learndirect.
Portfolio Support Services Intuitus also has a strong track record providing bespoke IT services to portfolio
Here is a selection of our portfolio support and other work for corporates in 2012:
CLIENT BUSINESS
SERVICE PROVIDED
DATE
Design and assembly of remotely operated vehicle systems
Project Management
WIP
Ferry operator
Interim IT Management
Jan-13
services can be categorised as follows:
Supplier of furniture and related services to the property industry
IT Operations Assessment
Dec-12
Systems Selection & Procurement
Service provider to the pipeline, civil engineering and utility construction sectors
IT Operations Assessment
Dec-12
Metal and waste recycling
IT Operations Assessment
Dec-12
Manufacturer and multi-channel shoe retailer
IT Operations Assessment
Nov-12
Home-based healthcare services
IT Operations Assessment
Nov-12
Online learning provider
IT Strategy support and Project Management
Nov-12
Global courier for clinical trials
IT Operations Assessment
Aug-12
Equipment rental to the offshore and onshore oil and gas sector
Project Management
Aug-12
Employee benefits solutions
IT Operations Assessment
Jul-12
Digital banking software for web and mobile channels
IT Operations Assessment & CTO recruitment support
May-12
Designer & distributor of commercial & domestic lighting products
IT Operations Assessment
Mar-12
Medico legal reports and services
IT Operations Assessment
Mar-12
Insurance solutions provider
IT Strategy & Roadmap Development
Feb-12
companies. Often these requirements are driven by strategic change, be it rapid growth or restructuring.
Our
business model allows us to deploy a broad range of IT expertise in response to various requirements, but typically
We ensure that best practice (yet pragmatic) disciplines are deployed with regards to requirements definition, the short-listing of potential systems and their providers, system evaluation and selection, business case development and, ultimately, procurement of the preferred system. Programme & Project Management We can provide highly experienced, sector relevant, Programme or Project Managers to take day-to-day responsibility for “making it happen.” This includes business liaison, risk and change management, planning and control, internal and third party management, and reporting. Interim IT Management The provision of an experienced CTO/IT Director (or equivalent) to temporarily lead the IT function. They might typically be required to help the Board deliver a change programme where the incumbent IT resources do not have the required level of experience. IT Strategy and Roadmap Providing the portfolio company with a commercially-focused rationale and approach for the development of its applications, systems, infrastructure and IT management practices over the short and medium term in line with the business plan. IT Operations Assessment An objective, expert assessment of the fitness for purpose of a company’s IT infrastructure, systems and resources, identifying pragmatic ways for improving business performance and/ or eliminating unnecessary cost through the more effective deployment of IT.
CLIENT
Project Implementation Support Including expert advice and guidance to the Project Board or the creation of relevant project governance structures, independent third party supplier / service provider assessments, or project reviews.
CTO/CIO/IT Director Recruitment Support We help portfolio companies define their requirements for and then recruit, with confidence, the right senior IT personnel.
Our Consulting Expertise The Intuitus management team knows that the capability and credibility of our consultants are of paramount importance to our clients as significant decisions with potentially far-reaching consequences will be influenced by their findings and recommendations. We deploy experienced CTOs, CIOs and IT Directors from successful UK and international businesses, who understand the real-world challenges and who themselves have had Board responsibility for IT and technology strategy, leadership and delivery. Their technical expertise is matched by strong sector and commercial awareness and this enables an incisiveness that is well-suited to, for example, due diligence engagements.
The track record tables within this newsletter illustrate our current breadth of sector expertise, from the “traditional” sectors such as manufacturing to the more technology-led sectors that comprise, for example, IT service providers, network and communications providers, online and multi-channel retailers and software companies. We also offer a real depth of expertise in all supply chain environments, across the financial services spectrum, and in the support services, healthcare, travel, media, oil and gas, leisure and telecoms sectors.
We continue to take a considered approach to expanding our consultancy network to ensure we have the capability (and capacity) to respond when required to do so - and have most recently brought in additional healthcare, waste management, public sector and telecoms experience. This approach to service delivery provides our clients with a highly flexible, responsive and multi-disciplined model that represents a single point of reference for all strategic IT advisory and IT management requirements.
consultingexpertise www.intuitus.co.uk/consultingexpertise
Intuitus Management Team Intuitus’ management team comprises Calum Stewart (Managing Director), Iain Mackay (Technical Director), Adrian Astley-Jones (Business Development Manager) and Maria Hamilton (Delivery Support Manager). In addition to our IT due diligence expertise, our collective experience includes technology leadership, boardlevel IT management and programme management across several industry sectors and different geographies, in companies of all sizes. As a management team we strive to be approachable and responsive, and we aim to build lasting client relationships by consistently delivering expert services of the highest quality.
Calum and Adrian are your initial points of contact for new requirements, whereas Iain and Maria are responsible for service management and delivery. The proven strength of the Intuitus’ business model is the management team’s understanding of private equity and our clients’ expectations with regards to due diligence and portfolio support, allied with the technical, sector and commercial expertise of our real-world consultants.
For more information please contact
Calum Stewart, Managing Director t 01383 510592 m 07887 521016 e calum.stewart@intuitus.co.uk
Intuitus is a member of the BVCA
www.intuitus.co.uk