Case Study: Meeting Due Diligence Needs With Valuable Insight
Frontier Capital, a leading provider of growth equity to technology-enabled business services companies, focuses on making investments in growing companies. As the firm evaluated three investment opportunities, Frontier wanted a depth of due diligence that went beyond the usual templated approach. For that level of evaluation, Frontier Capital called on The Intersect Group’s Executive & Transaction Advisory Services team for its valuable insights and recommendations from accounting, technology and operational business perspectives.
Within days of Frontier’s request, seasoned Intersect Group executives were on site at the three target companies to interview management, examine financial statements, identify risks and assess the scalability and maturity of technology and processes. The Intersect Group considered much more than historical data, technology components and quality of earnings; the team weighed a variety of factors impacting valuation and growth potential, everything from the sophistication of sales organizations to unusually high accounts receivable to the technology architecture of software platforms.
By evaluating businesses on multiple aspects, Intersect’s professionals help investors thoroughly understand what it will take to close the transactions as well as run and grow businesses post-closing. Intersect’s battle-tested team does more than assess typical business potential, it also provides intelligence related to key questions and challenges facing private equity firms:
- Is a particular business solution viable and scalable?
- What is the market position of the company’s products and services?
- Do gaps exist in current personnel, processes or technology?
- Will additional financing be needed and, most importantly, where should it be applied?
In less than three weeks, The Intersect Group detailed these and other business issues affecting the target companies, providing Frontier Capital balanced and objective feedback that created a reliable foundation for influencing its decision-making. The Intersect Group’s difference? Its strategic interpretation of relevant information delivers specific actionable plans for maximizing post-deal operations of each company. This capability provides a combination of in-depth analysis and insights that Frontier Capital can trust with practical recommendations it can apply to spark growth in the firm’s investment opportunities.
“The Intersect Group was responsive to our short timeframes, and
included not only the customary quality of earnings and technical due diligence, but also provided intelligent
and valuable insights and recommendations, giving us strong confidence in our investment decisions.”
Michael
Ramich Partner Frontier Capital
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About The Intersect Group
The Intersect Group, founded in 2006, is a different and better business
partner. The Intersect Group creates unparalleled value for its clients by combining industry-leading consulting
capabilities with comprehensive staffing and recruitment services. Clients trust The Intersect Group to deliver results
based on their deep expertise and proven resources within finance, accounting, and information technology. Through The
Intersect Group’s flexible delivery approach, you get the right solution, at the right time to accelerate your success and
achieve all of your mission-critical objectives.
Since inception, The Intersect Group's revenue has grown 800 percent, posting $3 million in revenue in its first year and a record $27 million in annual revenue at the end of 2010. The Intersect Group is one of the top 500 fastest growing privately held companies in the United States, as determined by Inc. magazine. In addition, Inc. magazine ranked us within the top 100 in the Business Products and Services category. The Intersect Group's 420 employees serve clients nationwide from offices in Atlanta, GA, Chicago, IL, and Dallas, TX.
