Case studies
Operational Due Diligence for the Partnership Investment of GCP into Cloudrock
The Challenge
Growth Capital Partners (GCP) had a period of exclusivity to assess and potentially complete a partnership investment in Cloudrock, a leading independent ERP implementation and digital transformation business with global Workday partner status and operations in the UK, Portugal, US, Australia, and India. Within a tight three-week timeline GCP needed to determine Cloudrock’s capability to execute its ambitious strategic growth plan to become the leading international transformation partner, and the largest independent advisor operating on a global basis across Human Capital Management (HCM) and Finance Management Services (FMS). To achieve this, they required a comprehensive assessment of Cloudrock’s business and operations, coordinating with both the Cloudrock leadership team and other specialist due diligence advisors, in a time efficient manner.
The Solution
GCP enlisted Garwood Solutions to leverage their specialist experience in Professional Services and Consulting, as well as their unique Operational Due Diligence methods. Garwood assembled a senior team with extensive experience in leading, growing, acquiring, and integrating Consulting and Professional Services businesses. The team included Rob Garner, Simon England, David Woodhead, and Paul Lines.
Garwood conducted workshops and a series of one-on-one meetings with Cloudrock’s team, utilising their Operations Due Diligence methodology and framework. This process involved capturing and analysing the business and operations across several dimensions: Value Propositions and Commercials, Processes, Organisation, Talent, Technology, Management Information, and Governance. The goal was to provide a clear assessment of Cloudrock’s ability to execute its growth plan, any valuation implications for the transaction, and short, medium, and long-term recommendations to mitigate execution risks and enhance business performance.
The Result
Garwood’s analysis provided a positive assessment of Cloudrock’s potential to achieve its strategic growth plan. Based on this thorough evaluation, GCP decided to invest in Cloudrock, completing the deal on May 20, 2024.
The involvement of our M&A expert, Paul Lines, was particularly valuable, as he evaluated the investment requirements of the recommendations, ensuring alignment with Cloudrock’s views on appropriate investment levels. Garwood’s expertise and depth of experience in advising on buy-side transactions for private equity ensured that the assessment was conducted through an investor lens, adding significant value to GCP’s internal processes. Both the GCP investment team and Cloudrock Executive team have expressed high satisfaction with the engagement and the outcomes delivered by the Garwood team.
