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Case Studies
We are committed to the success of our partners in business. Every investment begins with a well-defined strategic plan, but we are intuitive and nimble enough to adjust our plans as needed. The success of every business is our sole aim.
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Perceptis, LLC.
Headquarters: Columbia, MD and Ottawa, Ontario, Canada
Business: Remote Monitoring Technology and Intelligence Gathering Solutions
Acquired: 2001
Realization: 2005 |
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We have the flexibility to rapidly adapt to changing business conditions.
The Company
Perceptis was formed as a combination of EVI and Instantel. EVI was a cutting edge technology company focused on delivering extremely sophisticated and miniaturized remote sensing technology to the U.S. intelligence community. The company had a stable business with recurring revenue, a solid R & D base, and contracts with multiple agencies and departments within the federal government. EVI had about 80 employees who concentrated mostly on maintaining existing customer relationships. Limited attention was given to new business development.
Instantel was the leading manufacturer and marketer of security devices used for in-hospital baby monitoring and wander prevention for elder care. The company was also the global leader in vibration monitoring, serving primarily the mining industry, but with a growing market in construction. Started by an engineer, the company had a solid customer base and well-developed distribution channels. Due to a lack of funding, R & D was not a focus of the company.
Investment Idea
Our plan for building a broader business was to repurpose the highly sophisticated remote monitoring technology EVI had developed for the intelligence and defense communities and transfer it to various commercial markets, including the markets served by Instantel.
Demonstrating Flexibility
After the terrorist attacks of September 11, 2001, government restrictions on technology transfers from EVI became a constraint on our overall business model. We quickly changed our focus from technology transfer to working with each company to devise new strategic plans which would improve new business development, enhance operations and maximize enterprise value for the two businesses separately.
In the case of EVI, we assisted the company in meeting the challenges of a rapidly expanding production schedule arising from an environment of tightened national security. We provided the resources necessary to add new facilities and key employees, greatly increasing overall operating capacity. We helped a younger management team gain the maturity to take over operations of the business and allowed the founder to realize his goal of comfortably retiring. During the four years we owned the company, revenue nearly tripled. In 2005, EVI was acquired by a publicly-traded defense contractor.
At Instantel, we brought new vision to the business. We partnered with management to find new applications and markets for their products by thinking outside of the box. Specifically, we assisted in identifying and developing strategic partnerships, led an initiative to focus on R & D, and helped enhance the company’s indirect sales and marketing capability. While working with us, the company found new markets for existing products, developed new products and experienced a 40 percent growth in revenue. After four years, we negotiated the sale of the company to a strategic buyer who also acquired a primary competitor in the business of providing remote security monitoring to the healthcare industry.
Conclusion
In the face of unforeseen changes in business conditions, we exhibited the flexibility necessary to quickly modify our original investment plan and business strategy. Working closely with management, we helped create a new vision and provided the resources needed to help both companies become leaders in their respective niche markets. |
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“The events of 9/11 caused a profound shift for small companies supporting the intelligence community. Following those tragic events, our business expanded dramatically. SE Capital was with us to provide the financial support and strategic partnership we needed to thrive during that challenging time.”
Tom Conrad,
President, EVI Technologies |
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