Exit Transaction Preparation

Company Overview: Halski Systems was an IT Managed Service and Telecom Provider serving several industry verticals and specializing in the medical space.

Location: Headquartered in Gainesville, Georgia

Size: >$15mm in Revenue and 70+ Employees

Background: After 10 years as EVP of Sales, at 34 years of age, Seth Seagraves had acquired approximately 20% of Halski Systems and was then promoted to CEO by founder Lewis Halski. Upon Lewis’s retirement, Seth’s goal was to purchase 100% of the outstanding stock and transform the company into an industry leading and scalable enterprise that would be prepared for an opportunistic exit. 

Challenges: Lack of acquisition capital, limited experience as a CEO, inadequate accounting and internal controls, lack of risk mitigation and some Management Team dysfunction.

Solutions: 

- Logos Capital worked closely with Seth providing CEO coaching and Advisory

- We restructured debt and acquired the financing needed through a commercial bank, SBA loan and Seller’s Note

- We deployed a new Client Service Agreement with proper risk mitigation and purchased best in class insurance

- We revised strategy, client contracts and sales incentive plans to emphasize recurring revenue services

- We rebuilt the general ledger and instituted strong cash and internal controls 

- Performed a Transaction Readiness Assessment and focused on resolving transaction due diligence vulnerabilities prior to taking the company to market

Results:

- Significantly improved recurring revenue, margins and CAGR. Reduced project work as a % of sales.

- Improved the Working Capital cycle and visibility into KPI performance vs the industry

- Initiated a sellside process and closed after a smooth due diligence period without re-trading or negative structure

- The process produced >30 Indications of Interest and Seth achieved a double digit TTM EBITDA multiple valuation