How can M&A strategy help regional business grow in a global crisis?
An initial approach from an acquiror turned into two deals to complete a reverse merger, and all during a global pandemic.
Consignor, founded in 1997 by Peter Thomsen, had developed to become a leading Nordic Software as a Service (SaaS) player, offering multi-carrier parcel management systems to e-commerce businesses. However, in late 2019 Peter realized that the business lacked resources to take advantage of a significant developing global growth opportunity.
An approach from a rival looked attractive, but Thomsen wasn’t ready to retire and leave the business. He had bigger ambitions, so he reached out to EY teams for advice.
“I saw a compelling strategic rationale in combining Consignor with my competitor and become a leading global force,” commented Peter Thomsen, CEO, Consignor. “It was going to take time to extract the benefits of the combination, so it was important for me to remain actively involved with the management of the business as much as possible. I was also worried about teaming up with a partner who had a shorter investment horizon than mine. EY advised me to ‘take control of the situation’ by finding the right investor to back Consignor’s growth ambitions, both organic and inorganic.”
EY and EY-Parthenon teams designed and began executing on a transaction process that would meet Peter Thomsen’s ambitions to find a financial backer for Consignor that would help maximize its value creation potential, while participating proactively in the market consolidation. And then the global pandemic was declared.