GOVXCEL CASE STUDY

Interim President and CEO: 2001 - 2003

Executive Summary


Jim was brought in on a management consulting assignment and then was asked by the private equity ownership team to serve as interim Chief Executive Officer. During his two-year tenure as interim CEO, revenue growth increased by 65% with a 25% increase in operating cash flow. After the period of performance improvement, we ran a sale process and sold the company to Mitchell Humphrey, a strategic buyer interested in adding GovXcel to its suite of product offerings.


Investor:   Invesco Private Capital


Background

GovXcel was a middle market company that provided e-Government software used by municipalities to automate back office functions. The company offered a host of web-enabled software products that allowed citizens and businesses to have accessibility to the government in construction permitting, inspections, plan review, zoning, and land use management. The company was founded in 1988 and was based in Iselin, New Jersey. GovXcel generated $30 million revenue, with 35 FTEs and 40 1099 employees.


Challenge


The company’s leadership team was proving to be ineffective in building the enterprise in a profitable manner. A performance improvement plan, including a refined go-to-market strategy, was put in place as well as an expense reduction program.


GovXcel Performance Results:


· Created/implemented performance improvement plan driving 65% revenue increase over two years

· Cash flow increased by 25% over two years

· Managed sale process with exit to strategic buyer

 

Exit to strategic buyer for 1.5x revenue; equity value creation of $25 million


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