crossing the boundaries with khetal advisors
TRANSCRIPT
with
Crossing The Boundaries
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About SimpliLearn
SimpliLearn is a leading provider of online “certification training programs”
across Project Management, Quality, Big Data and Programming. They sell their courses across the world via online channels and
have strong operations team in India
Certification Courses via Online Channels
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For this the company decided to:
Enter the US Market and acquire Corporate Customers for their eLearning curriculum
Acquire eLearning courseware in complementary areas of certification like Networking, Digital Marketing, Microsoft certification courses etc.
US Presence
CorporateBusiness
Complementary Courses
SimpliLearn a fast growing company wanted to grow faster by expanding its geographical presence and widening its course curriculum
Fast growing company wanted a Faster Growth
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Krishna KumarCEO
“ We need a good company with great culture and should be highly complementary to our business. I would like the founder to stick around and help the combined entity grow exponentially. ”
Ganesh SubramanianCFO
“ We should acquire a profitable, Clean & Compliant and a growing firm that is easy to integrate with our existing business. ”
Board
“ We need all of above as of yesterday ”
Key Stakeholders & their Requirement
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Project Take-Off
Shortlist
Based on key metrics 126 companies were shortlisted
and reached-out
126Shortlisted
Reach-Out
Dialogue was initiated with 30 companies and the results were taken over to the CEO
30Showed Interest
Web Search3rd Party SourcesLinkedIn
Research
A Database of 400+ companies across content categories was
created
400+Firms Identified
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Deep Dive
SimpliLearn Team had a detailed call with 9 shortlisted
companies
9 Telephonic Calls
After internal discussion with the board 7 companies were
identified for a f2f meeting
7Meetings In-Person
On-spot offers were given to 4 companies after exploring in-depth
fitment, valuation and deal structure
4On-spot Offers
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From Hiccups till Closure
Term Sheet with Backup
While term sheet was issued to one company the other company was engaged in regular dialogues
2Targets Identified
Due Diligence & Red Flags
1/1Setback/Bounce Back
Within 3 weeks of due-diligence red flags were raised and the target was dropped. Overnight term sheet was
issued to the second target
acquired
Within 5 weeks after issuance of the term sheet, the transaction with
MarketMotive was consummated successfully
1Acquired
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US Presence
B2B Business
Complementary Course Catalog
• US Presence, B2B business and a Set of complementary Courses; SimpliLearn has got all that it wanted through an acquisition
• In less than a month from the transaction; Market Motive has seen a 20% growth in revenues due to expanded distribution of SimpliLearn
Key Synergies
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Krishna KumarCEO
“ With MarketMotive we’ve got a great partner and we should see strong growth in next six months. Lets do another one as soon as we close the integration ”
Ganesh SubramanianCFO
“ I've done three M&As in the past. This was the quickest one from DD to closure and the team @ Khetal did a good job of maintaining high intensity and helped maintain transparency both sides, throughout the process. ”
Board
“ Well done. When are we closing the next one ? ”
Comments from Key Stakeholders
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Key Takeaways
M&A is a great way to expedite growth. If done right…..
M&A needs to run as a process to get the right company at right price
Always have backupsThings get messy and you don’t know
unless you are deep in DD
Have a responsive DD team and ensure their availability during
weekends
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About Us
Khetal Advisors, is a boutique Investment Bank helping early stage and late stage companies in India & USA. We exclusively cater to the technology sector and offer fund raising and transaction
advisory services
acquisition of acquisition of majority acquisition of
some of the M&A transactions we advised in the recent past:
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Contact Us
Kunal WaliaManaging Partner
Former Director-Equities for Duke Equity Partners (part of USD 150 million Duke Special Opportunities Fund) and founder of Artemis Technologies
E-mail: [email protected]
Shashwat KumarPartner
Founder of TechUnified, a software services & product company which was acquired for USD 12.5 million in early 2007
E-mail: [email protected]