Select Case Studies
Financial Services
STS Capital Partners’ negotiating experience with international banks and financial services clients brings maximum valuation.
Market Research
STS worked with our client to identify their unique technology and positioned them with international strategic investors that could take them to the next level globally.
Communications Technology
STS moved quickly with emphasis on buyers who would bring synergies to the company that would enable them to pay a higher multiple.
Business Process Outsourcing
STS Capital Partners senior team members stay actively involved in the divestiture process.
Food Sector
STS leveraged its experience, network and knowledge of players in the market to successfully negotiate the sale to a strategic buyer.
Business Process Outsourcing Case Study
The Challenge
A large public institution had established a for-profit inbound contact centre on three sites. Considerable new capital investment would be required to ensure it remained competitive. The institution decided to divest the business to redeploy the capital to its core operations. STS was retained in preference to a much larger competitor in part because of its policy of ensuring senior partners oversee the divestiture process. The business had only one customer, a telcom company, which increased perceived risk to buyers and limited potential bidders.
Process
Since it was a public institution, STS arranged for an independent business valuation to present to the Board of Directors to ensure they had a clear understanding of the value range. STS reached out to Business Process Outsourcing companies around the world and generated expressions of interest from 10. STS focused on companies with experience and focus in the telecom sector who would see the one single telecom customer as a benefit, not a risk. Four bidders where invited to management presentations and Letters of Intent were submitted by three. The final stage of the process occurred in the summer of 2008 as capital markets were beginning to break down and the lead bidder was forced to withdraw because of the inability to get financing. STS brought the second-best bidder back to the table to conclude the transaction.
STS created a win-win situation
STS was able to close the transaction in the fall of 2008, in the midst of historic market turmoil. The price was within the range of the independent valuation. The successful bidder also agreed to lease additional vacant space in the building, which was owned by the public institution, to accommodate additional business being brought in.
Client comment:
“I was impressed with the ability of STS to roll with the punches, fight hard for its client and ultimately to get a price that was within the forecast valuation range.”
Chairman of the Board