THOMPSON MEDIA GROUP CASE STUDY

President and Chief Executive Officer: 2010 - 2014

Executive Summary


Thompson Media Group, LLC was a struggling business to business services provider in the professional training sector, largely stuck in a print-only mode in providing extraordinary content to its base of over 75,000 B2B subscribers. Our team undertook one of the most advanced technology-enabled significant digital transformations in the professional education industry over the period from 2010 through 2014, resulting in a highly accretive return for investors. Company had $60mm revenues and over 300 employees.


Investors:  PNC Bank, NewStar Financial Group, GE Capital, eight additional institutional lenders


Background


Ownership of the entity included 11 institutional lenders, including PNC Bank, NewStar, Fortress, and GE Capital.  A failed roll-up by private equity ownership, the lenders took the company back and hired our management team to embark on a business turnaround. The company was composed of five “rich content” service providers in the financial services, healthcare services, human resources, and bio-pharma sectors.


Challenge


Revenues were declining as clients moved to alternative service providers with a stronger online learning capability. The strategic and operational plan that our management team developed focused on a full-scale digital transformation of product and service offerings in all five operating divisions. We created highly sophisticated digital libraries to serve as the interface with customers, a conversion to a digital, SAAS model that increased online revenue from 13% to over 50% in the first year. Our team developed 17 new digital libraries through the conversion of 200,000 pages of “rich content” over a period of 12 months.


Coincident with this digital transformation was development of a go-to-market strategy for clients based on the different nature of the end-markets. The go-to-market strategy incorporated both enterprise level sales as well as business consumer clients. We implemented package and pricing changes in each business line based on independent survey work while Rebranding each product line and website interface.


Thompson Media Group Performance Results


-  Increased cash flow by 26% CAGR over four years

-  Digital transformation drove SAAS revenues increase from 13% of revenues to 50% in first year

· Managed process for exit through sale of five separate business lines to different buyers


Exit 10.1x trailing EBITDA and 3.0x capital.



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