The Client
Hosted Desktop UK Limited (“HDUK”) was founded in May 2010 and is predominantly a provider of Managed Cloud Services to a user base of around 800 SME customers of which 60% are accountancy firms. It is also a very profitable business.
The management team, being small, had only limited time available for prospective buyers so it was important to fully prequalify possible buyers and to limit the interested parties to a minimum without detriment to the outcome, particularly important to the client was to deliver competition and choice to ensure a premium valuation was obtained.
Client Objectives
Unusually, the three director-owners of the company, did not work within the business. At the time of appointment they had to decide whether to scale-up the business and exploit the success it was enjoying or exit and allow the new owners to do just that. After much reflection they decided to exit. The ownership team attached great importance to:
- The acquirer being able to provide the right opportunity for the managing director and his team to grow the business in the UK.
- The buyer would recognise the added value in a business serving the accountancy sector.
- The transaction would be completed in the shortest possible time.
Overview
HDUK Limited (hduk.co.uk) is a managed service provider, primarily focused on the SME market, with a very strong vertical in the accountancy sector whilst also meeting the needs of lawyers, charities and recruitment. They appointed WTA as their exclusive sell-side advisor at the end of August 2024 mainly due to the firm’s highly successful track record in the managed services sector.
Just over four months later HDUK was acquired by the fast-growing European MSP family of Your.Cloud (your.cloud), consisting of more than 25 companies and 1,500 employees.
Outcome
The stated objectives of the vendors were met, including providing opportunities for the executive team and employees, obtaining best value for the shareholders and completing in short time to reduce the burden on the owners and directors. Your.Cloud, being a high quality and ambitious business meets all the employees’ requirements and aspirations.
We listened very carefully and devised the GTM strategy around the owners’ requirements. We selected a qualified target group of potential buyers and achieved over 90% engagement. We delivered competition and choice and this resulted in good offers being presented by committed and relevant buyers. We fully qualified potential buyers before introducing them to the company.
The Acquirer Perspective
“The envisaged timelines for the process were relatively short. However, because of Jeffrey’s transaction experience, and know-how of the MSP space, he was key to getting the deal done in quick time. As part of the preparation process, Jeffrey arranged for the right set of information a prospective buyer would focus on during the process, and as such we were able to wrap up our DD in the shortest possible timeframe. Jeffrey’s deal making experience came to the fore in the end phase of the project and we were able to break multiple deadlocks in time to finalise the transaction.”
Mohit Sharma – Director, M&A, Your.Cloud
The Client Perspective
“Having been through several sell side processes, and a few buy side transactions, we knew that the most important element to a successful transaction is finding a buyer in the first place. Many advisors seem to overlook this and concentrate on their ability to transact “the process” this is where our previous experience led us to the door of WTA.
There is absolutely no doubt that WTA led by Jeffrey are sector specialists with an unparalleled network of contacts that they can very quickly bring to the table. We have never been in a sell process before where so many NDAs have been signed in such a short time frame from choosing the advisor.
The ongoing connectivity that WTA have with a whole range of active buyers, both UK and International, ensure that as a seller you can quickly gain confidence that the end result will be a successful sale with great competitive tension between potential buyers.
I would have no hesitation whatsoever in recommending WTA as the go to sector specialist to find a great value buyer for your company. Jeffrey and the team have been a pleasure to work with, sharing their knowledge and expertise throughout the process.”
Adrian Burns – Chairman, HDUK
For WTA: Jeffrey Jenner