IZAR CAPITAL GROUP
Innovation - Creativity - Expertise TM
  • Our Beliefs
  • Team
    • Paul Hammer (Co-founder)
    • J.F. Scarborough III (Co-founder)
    • Alonso Charbel
    • Carlos H. Christensen
    • Richard "Dick" Corrigan
    • William "Bill" R. Cullen
    • Michael D. Frachetti, Ph.D.
    • Rick Grant
    • David Hofmann
    • Thomas F. O'Neill
    • Joseph G. Passaic, Jr.
    • Barry W. Scanlon
    • Ken Steidley
    • Advisory Board >
      • Armand Mancini
      • Timothy B. Harmon
      • Gerard van Hamel Platerink
  • What We Do
    • Strategic Advisory
    • Joint-Ventures / Mergers and Acquisitions / Strategic Investments
    • Corporate Finance / Capital Raising
    • Multi-Lateral Institution Strategic Consulting
  • Deal Experience
  • Case Studies
    • Capital Raise: Global Hospitality Services Company
    • Factory Formation and Financing: European Renewable Energy Component Manufacturer
    • JV Creation: Multinational Shipping / Logistics Company
    • M&A (Buyside): Spanish Translation Services Provider
    • M&A (Sellside): Engineering Services Consulting Company
    • M&A (Sellside): Omni-channel E-Commerce IT Solutions Company
    • ​New Market Expansion-USA (Commercial Office Setup and Management): Industrial Spanish Auto Parts Manufacturer
    • Strategic Advisory (Spain-USA): Spanish Industrial Fasteners Manufacturer
    • Strategic Alternatives: Spanish Environmental Remediation Services
    • Restructuring: Multi Sector Holding Company
    • Private Equity and Debt Investment Analysis: U.S. Department of Energy - Loan Guarantee Program
    • Private Equity Investment Analysis: Global Family Office Investment House
  • Principal Investment
  • Careers
  • Community Impact
  • Contact
    • Legal / Terms of Use
  • News

Omni-channel E-Commerce IT Solutions Company
M&A


Client: A leading US-headquartered, Mexico-market focused omni-channel E Commerce solutions implementation and software development provider with offices in Mexico, Argentina and the US.

The Problem: Client had spent 15 years building the company into one of the most experienced E-Commerce providers in Latin America.  In order to maximize value to shareholders and access additional capital for growth, Client desired to sell part or all of the company.

The Solution: Serve as the Client’s strategic advisor and conduct an internal preparation and strategic alternatives, the goal of which is to execute a value-maximizing solution for the shareholders.  Result was to combine with a much larger IT services entity, which was seeking to enter the E-Commerce solutions marketplace in Latin America and the US.


Key Solutions / Deal Highlights
  • Carried out extensive internal due diligence, SWOT analysis and discussion of client priorities and goals
  • Developed robust financial models and customized deal documents
  • Conducted internal analysis from perspective of buyer for key valuation items, including growth prospects, customer concentration, profit by customer-product-employee basis and contract runoff analysis
  • Built extensive, detailed database of potential buyers in the US, Latin America and Europe
  • Carried out targeted marketing campaign; leveraged existing relationships with private equity firms, industry participants and other stakeholders to gain high level access and build credibility with potential buyers
  • Generated credible interest from two private equity-backed IT service companies in Latin America and two strategic firms in Europe
  • Advised Client on strategic issues relating to:  the choice of partner; the negotiation, structuring and closing process; and specific structuring and tactical issues such as compensation schemes, earn-outs, EBITDA targets, equity structures.
  • Negotiated LOI outlining deal terms with favored buyer, resulting in structural achievements such as: i) floating EBITDA valuation metric; ii) increased upfront cash per Client desire; and iii) EBITDA re-definition to include additional deal value
  • Managed all elements of M&A due diligence process, including financial, legal, accounting, insurance, human resources, contract, customer interviews, benefits, tax, subcontracts, A/Rs, A/Ps, bonuses, 401k plan, liability management, fixed assets, environmental issues and employment agreements
  • Created earn-out model to assess, negotiate and plan for 2 year payout period for portion of proceeds
  • Negotiated working capital adjustment and final EBITDA calculation mechanics
  • Our Beliefs
  • Team
    • Paul Hammer (Co-founder)
    • J.F. Scarborough III (Co-founder)
    • Alonso Charbel
    • Carlos H. Christensen
    • Richard "Dick" Corrigan
    • William "Bill" R. Cullen
    • Michael D. Frachetti, Ph.D.
    • Rick Grant
    • David Hofmann
    • Thomas F. O'Neill
    • Joseph G. Passaic, Jr.
    • Barry W. Scanlon
    • Ken Steidley
    • Advisory Board >
      • Armand Mancini
      • Timothy B. Harmon
      • Gerard van Hamel Platerink
  • What We Do
    • Strategic Advisory
    • Joint-Ventures / Mergers and Acquisitions / Strategic Investments
    • Corporate Finance / Capital Raising
    • Multi-Lateral Institution Strategic Consulting
  • Deal Experience
  • Case Studies
    • Capital Raise: Global Hospitality Services Company
    • Factory Formation and Financing: European Renewable Energy Component Manufacturer
    • JV Creation: Multinational Shipping / Logistics Company
    • M&A (Buyside): Spanish Translation Services Provider
    • M&A (Sellside): Engineering Services Consulting Company
    • M&A (Sellside): Omni-channel E-Commerce IT Solutions Company
    • ​New Market Expansion-USA (Commercial Office Setup and Management): Industrial Spanish Auto Parts Manufacturer
    • Strategic Advisory (Spain-USA): Spanish Industrial Fasteners Manufacturer
    • Strategic Alternatives: Spanish Environmental Remediation Services
    • Restructuring: Multi Sector Holding Company
    • Private Equity and Debt Investment Analysis: U.S. Department of Energy - Loan Guarantee Program
    • Private Equity Investment Analysis: Global Family Office Investment House
  • Principal Investment
  • Careers
  • Community Impact
  • Contact
    • Legal / Terms of Use
  • News