Posts tagged M&A
THE TRUE VALUE OF A COMPANY IN AN EMERGING MARKET

SITUATION

A chasm often exists between being able to see an opportunity and being able to seize it. Capto worked with a private investment and real estate company in the Middle East that wanted to leverage infrastructure outsourcing market growth in the region by establishing a new company. After initially analyzing the scale of the investment and the operational complexities involved, the firm determined that it needed outside operating expertise to develop the appropriate investment strategy. Enter Capto to help formulate a strategy and assist in execution.

THE SYNAPTIC SHIFT

Capto worked closely with the investment team, developing a strategy that leveraged the capabilities of established global players within the sector. Through our operating contacts, we quickly engaged with a number of firms interested in a joint operating model. After detailed discussion and due diligence, the Capto team guided the formation of a partnership and established the groundwork necessary to create a new company.

RESULT

  • The investor averred they could not have moved that quickly without Capto’s support
M&ATracy CurrieM&A
Expanding Cloud and Data Center Services Portfolio with High Compliance Data Center Services

SITUATION

A private equity firm sought growth by expanding into high compliance cloud and data services targeting the federal government domain. Capto was brought on board to evaluate a potential target acquisition. Focus was placed on a market assessment that included a demand and competitive analysis, a technical review of the relevant compliance standards, and an evaluation of how the market is addressing the standards.

THE SYNAPTIC SHIFT

The Capto team’s in-depth knowledge of the federal government and computer security domains was table stakes for the client engagement.  Capto combined these requisite skills with our team’s knowledge of other high compliance industries via our experience in healthcare and financial services to expand our client’s thinking regarding the target market. The target acquisition could help our client penetrate not just federal government opportunities, but several high compliance industries including healthcare and financial services. 

RESULT

  • This shift in thinking allowed our private equity client to expand the potential markets behind their investment thesis resulting in an improved market evaluation process and more accurate bid for the target company.
Our Story

Capto is a boutique management consulting firm offering strategic counsel and prescriptive guidance to help our clients (Fortune 1000, service providers, and private equity firms) make confidant and timely decisions regarding their technology investments. Our areas of focus include technology strategy and investment, sourcing, data center services, and investment advisory / mergers and acquisitions (M&A) support.

Like pretty much every other management consulting firm, Capto consists of seasoned C-level executives from both sides of customer/ provider divide with experience from across the technology business spectrum.  What makes us different is our fact-based, analytic approach that combines the best of academic research with our hands-on experience forged in real-world engagements that aligns the best practices in deploying technology-based solutions with our clients' business goals.  Our methodology, SYNAPTIC, was born out of our private equity practice and shaped over time to drive solutions to our all of clients at the speed of thought.  It leverages the diverse, multi-disciplinary background of the Capto team to make the cognitive connections needed to knit together the components necessary for differentiating outcomes.

We founded Capto on the premise that technology investments far too often fail to meet their operational or economic objectives. Our experience on both sides of the equation—in leading strategic technology investment initiatives for Fortune 200 companies and in having held executive-level positions at leading service and technology providers—has taught us that the technology ecosystem MUST perform to higher standards of timely, predictable, value-driven performance.

We also recognized that our experience equipped us with only some of the answer.  So we sought out leading academic research across disciplines ranging from supply chain to economics to technology harvesting the best available research and thinking. We discovered valuable insights, determined where existing practices could be refined, and engaged brilliant academicians studying companies, both large and small, who were achieving high-performance results.  During these formative years of Capto we integrated these elements into the repeatable, scalable, agile approach we call SYNAPTIC that enables our client’s IT investments to deliver impactful, predictable, and timely performance.

As a self-funded startup we were faced with the problem of how to fund several years of thoughtful study and analysis that developing the SYNAPTIC approach would require. Being practical above all else—and admittedly somewhat lucky—we turned to our network in the private equity world, but rather than seek investment, we went to work for them, evaluating potential technology acquisitions.

Our private equity clients and the engagements we worked on brought us our expected results—cash flow to sustain our time in the academic wilderness and the opportunity to refine SYNAPTIC in a repeatable, disciplined way through real-world engagements.  But we found unexpected results as well. The business model assessment tool we developed for our private equity clients rounded out the front end of how we now engage all our clients, private equity, service providers and the Fortune 200. Very simply, in keeping with our cross-discipline approach, we bring a mergers and acquisitions framework to evaluating the business of technology, allowing us to focus on the critical, ignore the noise, and prioritize the rest.

We are really excited that SYNAPTIC is delivering valued, lasting, and timely results for our clients. We thrive on the deep relationships we form and repeat business we receive from our clients.

Thanks for reading about our journey; we hope it gives you a sense of how we approach our business and yours.