Avedo Group Investment
| Company | Avedo Group |
| www | www.avedo.de |
| Initial Investment Date | December 2015 |
| Exit | July 2017 |
| Entry Valuation | 44.9m |
| Exit Valuation | 93.75 |
| Total Investment | 22.3m |
| Current Sale Value | 51.1m |
| 2017 Revenue | 61m |
| 2017 EBITDA | 10.8m |
| Initial Ownership | 57% |
| Investment Type | Replacement Capital |
| Seafort Role at Entry | Sole Institutional Investor |
| Co-Investors | Management |
| Multiple at Cost | 2.3x |
| Gross IRR | ~75% |
Business Description and Investment Thesis
The Avedo Group is a dialogue marketing specialist for Germany specialized in lead management, telemarketing and telesales and business process outsourcing (BPO). At the time of entry Avedo employed around 1000 people in its locations in Rostock, Cologne, Leipzig and Munich.
Key Investment Considerations
Avedo had developed efficient time keeping processes to grant customers a very precise cost budget.
This together with targeting attractive customers led to an attractive EBITDA margin of 16-18%, which is among the highest in the industry.
We looked for add-on targets to satisfy growing customer demand to expand as fast as possible.
Post-Investment Value Development and role of Seafort
Right after investing we started an intensive growth program with further process streamlining, opening of new locations with attractive price structures (Ruhr-Area), negotiating and signing add-on acquisitions, re-financing of the group and pitching for new clients.
The result was a strong growth both top and bottom line from €30m to €61m in two years!
Exit and Valuation
As a result of the strong growth the company became of interest to a strategic buyer (STROER Group) who was looking for an attractive business service processing company. Even before we could start an auction process to the large European competitors, we were offered €93,7m and so within a holding period of only 18 months we returned 2,3x money invested with an IRR of 75%!