November 21, 2024
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3 min read
Background
Evolution Capital was appointed by Chess ICT to provide comprehensive financial due diligence support in Chess’s acquisition of Silversands Limited, a respected Microsoft Certified Partner serving over 100 enterprise and public sector clients. This acquisition strengthened Chess ICT’s capabilities across Microsoft 365, Azure, Power Platform, on-premise solutions, and devices, enhancing its portfolio of advanced technology services.
Chess ICT, one of the UK’s prominent independent technology providers, supports over 25,000 organisations with a team of more than 260 skilled professionals. Known for its commitment to connecting people, safeguarding data, and driving business growth, Chess has built a reputation on trust and expertise, investing heavily in its people and technology to stay at the forefront of the industry. Chess ICT is proud to celebrate its sixteenth consecutive year as one of the UK’s Best Companies to Work For, a testament to our ongoing commitment to creating a workplace that values, supports, and inspires its people.
Financial Due Diligence Approach
Evolution Capital was tasked with delivering an in-depth financial analysis of Silversands’ performance. Through the utilisation of the EC Analytics toolset, the Evolution Capital transaction team provided Chess ICT with a clear, data-driven understanding of the business’s trajectory, enabling Chess to evaluate the deal’s potential value with clarity, accuracy, and confidence.
A central part of the due diligence process was the development of a detailed, forward-looking customer landscape and the subsequent projected, underlying profitability Chess could expect. By focusing on key indicators such as run-rate EBITDA, pipeline conversion and churn rates, the Evolution Capital team go beyond analysing surface-level financials, ensuring that Chess’s strategic objectives were met and that every aspect of Silversands’ financial structure was carefully scrutinised.
EC Analytics
To determine the full value and implications of the acquisition, Evolution Capital’s team applied meticulous attention to financial details and sector-specific knowledge. The EC Analytics platform allowed the team to examine Silversands’ historical and projected performance in depth, transforming granular nominal and billing information into actionable insights that supported Chess in setting realistic budget expectations and assessing the transaction's long-term potential.
Successful Outcomes
This engagement reinforces Evolution Capital’s established relationship with Chess ICT, marking another successful collaboration in a series of transactions. Evolution Capital’s role in this partnership highlights its commitment to providing strategic support that underpins Chess ICT’s acquisition confidence and long-term growth.
The collaboration between Chess ICT and Evolution Capital underscored the critical role of sophisticated financial due diligence in complex acquisitions. Evolution Capital’s longstanding partnership with Chess ICT highlighted the trust Chess places in our financial and sector expertise, which has proven instrumental in this latest acquisition.
Sam Godfrey, Transaction Services Director at Evolution Capital, commented:
"It was a pleasure to partner with Chess ICT on the acquisition of Silversands. By leveraging our EC Analytics platform, we delivered valuable insights into Silversands’ financial performance and future potential. We look forward to continuing our partnership with Chess ICT and achieving future successes together."
Richard Btesh, Director at Chess ICT, added:
"The Evolution team’s commercial insight and technical expertise provided us with a deep understanding of the business’s performance, helping set realistic budgeting expectations."
David Pollock, Founder Chairman of Chess ICT, said:
"This acquisition presents exciting new opportunities for our team and customers. The addition of Silversands enhances our ability to offer innovative products and services that drive value for our clients."
