From surfing to business sale: celebrating 13 years riding the wave with iVolve
29.7.2024In the world of M&A, transactions are often seen as one-time events. But what if we told you that the key to a successful deal lies beyond the balance sheet? Strong relationships, built on trust and a shared vision, can be the difference between a quick flip and a transformative partnership. At InterFinancial, we take that concept to heart, and our story with iVolve is a great example of our philosophy. Our remarkable 13-year journey saw iVolve triple its business value and achieve a successful exit with a 100% acquisition by Komatsu.
How it started?
It all began in 2011 when Rick Anstey from VC fund, IQ Capital approached us to help them exit from iVolve. Rick, a strong supporter of female-led businesses, had previously entrusted Sharon, our Executive Chair, to assist with exiting another female-founded business. This wasn’t just a one-off collaboration; Sharon and Rick’s professional relationship had deep roots and has continued to flourish – they currently serve together on the Board of Technology One.
Knowing this, David Eagles and Kim Parascos, iVolve’s founders, were understandably nervous about our involvement and concerned that we might prioritise IQ Capital’s interests over those of the company as a whole. We knew we had to build trust and prove our approach was holistic, taking into account the needs and aspirations of everyone involved in iVolve’s journey.
Building trust
While the VC fund was required to execute a transaction as its 10-year investment window was closing, founders David and Kim felt the journey for them as shareholders of iVolve was far from over. Recognising the steep decline in the mining industry at the time through sound market research, we advised against the sale despite the fund constraints and the opportunity for a quick success fee!
Our transparency and integrity aligned with David and Kim’s values. What began as a professional relationship evolved into a genuine friendship. In fact, Kim was part of her entourage of besties that went on a Surf Goddess retreat in Bali to celebrate our Sharon’s (29th!) birthday in 2012. Sharon considers Kim as one of her closest friends.
VC fund exit and TopCon entry
As the market stabilised over the following two years, in 2014 we leveraged our expertise and networks in the mining technology market to introduce TopCon as a strategic investor to replace Rick’s VC investment and accelerate iVolve’s expansion in the US. We secured a solid premium for the VC fund’s exit and negotiated a structure that allowed the iVolve founders to remain as majority shareholders and pursue their vision for continued growth.
Preparing for future growth and sustainability
As the founders continued to pour their heart and soul into growing their business, we didn’t just sit on the sidelines. We helped iVolve pivot from traditional product sales to a subscription-based business model. This shift, coupled with our investor-focused guidance on organisational sustainability and risk mitigation, positioned iVolve into a more attractive and less risky acquisition target. The new business model and iVolve’s outstanding capabilities in the sector led to a significant partnership and ultimate acquisition by Komatsu, a key Japanese multinational industrial player in Australia.
A rewarding sale to Komatsu
While the iVolve team worked hard to expand the business, we provided a structure that enabled their success throughout the years. In 2022, the fruits of our long-term strategy became evident in the nine years between TopCon’s investment and Komatsu’s acquisition of iVolve. This wasn’t a surprise; the intervening years had seen iVolve’s impressive growth that tripled shareholder value.
When Komatsu expressed initial interest through an indicative offer, we jumped into action and subsequently assisted iVolve with the sale process. Recognising the potential this represented, the iVolve shareholders tasked us with a clear mission: capitalise on Komatsu’s initial interest and translate it into a formal offer that reflected iVolve’s true worth and progress the deal in a quick timeframe.
From preparing an Information Memorandum in two weeks to managing the due diligence process and managing a range of various stakeholders, we successfully negotiated an increase in the total consideration paid from Komatsu’s initial offer – a wonderful recognition for iVolve’s shareholders.
“InterFinancial’s support over the last decade has been invaluable. Their commitment to our success provided a strong foundation for our growth and ultimate cross-border sale to Japanese firm Komatsu. Because of our longstanding partnership, Sharon and her team deeply understood our business and objectives and were able to negotiate deal terms that reflected the true value of our company. All within a tight deadline.”
Kim Parascos, iVolve CEO
More than numbers
Our 13-year journey with iVolve wasn’t just about a successful sale; it’s a story that demonstrates a relationship built on trust and shared values, ultimately helping them achieve more. This is the foundation for every partnership at InterFinancial.
If you’re looking to navigate your own growth journey, our experienced team is here to help.
