An attractive target, a short clock.
Quadrant Capital agreed exclusivity on a fast-growing payments processor with e-money licences in the UK, Ireland, Lithuania and Singapore. Management's numbers looked clean, but the data room opened with 2,300 documents and six weeks to signing.
- $310Mheadline enterprise value
- 4licences in four jurisdictions
- 6wkof exclusivity to signing
Quadrant had used separate advisors for financial, legal and technology diligence on earlier deals, and each time the findings arrived in different formats, on different days. The investment committee wanted one view of what could move the price and what had to be fixed before closing.
Two questions mattered most: whether recurring revenue was as recurring as the model assumed, and whether every licence would survive a change of control.
One team, one issues log.
A partner-led team of seven ran financial, regulatory and technology diligence from a single issues log, reporting to Quadrant's deal team every Friday.
- 01
Test the revenue
We rebuilt twelve months of revenue from transaction-level data and found $4.1M of implementation fees booked as recurring income.
- 02
Check every licence
Our regulatory team reviewed each licence against change-of-control rules and found one that required prior approval the seller had not sought.
- 03
Price the findings
We translated every issue into a price adjustment, an indemnity or a condition precedent, so the negotiation started from evidence.