Value-added Distributor of IT Products

Company Overview

Value-added Distributor of IT Products - North America’s largest privately-held technology solutions provider is the premier value-added distributor of personal computers, peripherals, networking and storage products, software and other hardware & accessories.

Engagement Overview
•  FDP was financial and business advisor to the Company from 1990 through the sale of the Company in 2002.

•  Over that time, FDP worked on a variety of strategic planning, profit improvement and corporate finance advisory engagements.
•Arranged multiple credit facilities, the largest being a $160 million working capital facility

•  Formalized the Company’s strategic planning process and served as de facto Board member to help guide the company from $100 million to $1.6 billion.

•  Advised management in the following initiatives:
•  Having recognized certain trends in the industry, convinced management to sell a non-core division at its peak value
•  Promoted a shift in sales focus from volume selling to cross-selling and up-selling of value added services resulting in increased margins
•  Advocated the development of a web-based infrastructure that would allow the Company to effectively compete with top tier telemarketers
•  Identified over $3 million of expense reductions necessary to remain competitive during a tumultuous period in the industry and to complete a critical refinancing

•  FDP also assisted in:
•  Recruiting senior executives
•  Identifying cost control and internal control measures
•  Profitability analyses and valuations of business segments
•  Development of long-term management and sales force incentive plans
Results

•  Trusted financial and business advisor to the Company for over 12 years.

•  Assisted management in developing strategic plan to grow the Company from $100 million to $1.5 billion.

•  Arranged $160 million working capital facility.

•  FDP was engaged as exclusive financial advisor to negotiate the sale of the company.

•  Intimate knowledge of the industry, operations and potential synergies and post-purchase integration plan drove the ultimate  valuation of the company.