Accelerated Standup of IT Infrastructure Solution Saves Client $1.35m

Overview

Industry: Private Equity

A highly specialized private equity group (Client) purchased a large energy technology company’s business unit. As part of the private equity group’s growth goals, they proceeded to carve out an individual company that provides global pressure control products and services (Investment Company) and merge with an existing portfolio company. To minimize separation costs, limit business interruptions, and facilitate the deployment of enterprise ERP, engineering, and manufacturing systems of the Investment Company, the Client engaged Bridgepoint Consulting as a trusted, strategic partner to provide IT infrastructure services.

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Private Equity Firm Can Now Easily Scale Investment Companies

Business Challenge

As part of this Divestiture, the Client entered into a Transition Services Agreement (TSA) with the Seller, a standard practice in Carve-outs. The TSA specified the continued post-closing provisioning of digital technology services, including network access, accounting systems, email services, and data security over the next 12 months. However, due to substantial ongoing costs within the TSA, the Client wanted to deploy a new IT infrastructure within 3-4 months. In addition to the TSA costs, the Investment Company had limited visibility into financials, giving the Client more incentives to stand up a new ERP along with an IT infrastructure to support numerous large data storage, data transfers, accounting and integrated enterprise systems.

In addition to an accelerated timeline, the Investment Company had 18 locations across the globe, each of which had different functional roles and IT requirements. Bridgepoint Consulting had their work cut out for themselves.

Solution

Bridgepoint Consulting leveraged its proven methodology of Align, Design, Execute, and Deploy to oversee the design, development, and deployment of a complete IT infrastructure from the ground up. After a brief discovery phase, Bridgepoint Consulting determined that the system would need to be secure, reliable, and cost-effective. They also learned the divesting company would provide minimal information on how they would be handing over IT Assets. With this in mind, Bridgepoint Consulting engaged in a “War-Room” with the Client to enable a collaborative environment, facilitate effective teamwork and ensure proper communications. Shortly after initiating the project, Bridgepoint Consulting rapidly deployed Cloud Services to support the Investment Company’s future operations and support immediate separation tasks, including data migration, data storage, and document management. To meet the carveout transaction’s needs, Bridgepoint Consulting deployed compute, storage, data, identity, and infrastructure services on Microsoft Azure, just days after the deal closed. The initial Azure design considered the accommodation of 18 branch offices across three global regions: the US, Australia, and South America. The solution’s essential requirements included site-to-site VPN, In-Region Backup, Out-of-Region disaster recovery, three domain controllers, and three files servers.

After an initial Cloud Services implementation, Bridgepoint Consulting completed data attestation, email migration, OneDrive migration, reimaging of machines, wiping device hard drives, and configured new hardware images. They would also cover installing a new firewall, switches, and Wireless Access (WAPs), and the installation of VOIP phones. With a set of tasks defined, Bridgepoint Consulting would roll out each of these to the 18 locations in a logical sequence to minimize business interruptions and maximize resource allocation. Due to standing up an IT infrastructure across the Investment Company locations, Bridgepoint Consulting needed to consider each location’s functional roles and IT requirements. To build an appropriate Network and Telecom infrastructure for each area while minimizing costs, Bridgepoint Consulting worked with the Client to identify classes to associate with each location.

Business Results

Bridgepoint Consulting successfully implemented IT infrastructure for the Investment Company within the dedicated timeline. By standing up systems within four months, Bridgepoint consulting saved the Client approximately $1.35m in additional fees as provisioned by the TSA. As the Client continues to guide the Investment Company to new growth, they can be confident in their IT infrastructure’s security, reliability, and cost-efficient system.

What the Client Says

The pressure controls division achieved its first positive EBITDA in February of 2021 and break-even cash flow. This had not happened since ~2008. Bridgepoint was a true partner during the division carve out and provided exemplary services during the ERP and IT implementation!

Private Equity Client Chairman