IFL Ventures advises Frontline Accounting on its 80% sale to Sierra Madre

16.2.2021

InterFinancial, through its IP focused division IFL Ventures, has advised business process outsourcing (BPO) company, Frontline Accounting on its 80% sale to the Philippines-based PE firm Sierra Madre.

Frontline Accounting is a provider of offshore staffing solutions from the Philippines to accounting firms based in Australia, UK and USA. It experienced strong growth since its establishment, with a humble beginning of 3 staff to a 300-strong workforce to date, running 3 shifts in 24 hours to serve clients around the world from facilities in Quezon City, Philippines. The company was founded by two accounting professionals, Mark Cottle and Jonathan Ryall in 2014.

Sierra Madre is an experienced Manila-based private equity firm which invests in high-growth Philippines-based businesses across a diverse range of sectors. Sierra Madre’s investment model focuses on partnership investing with founders / business owners to help accelerate the growth trajectory of their businesses.

Sierra Madre sees Frontline Accounting as a solid platform investment opportunity in the specialized accounting BPO sector. It highly values the ‘know-how’, the processes and the client base which the founders have built up with relentless efforts over the years. Post transaction, the co-founder Mark Cottle will remain as the CEO of Frontline and work closely with Sierra Madre to fulfill the strategic plans and initiatives of the company.

IFL Ventures represented Frontline throughout the sale process, from preparing the information memorandum, marketing, to managing the due diligence process, assisting with the SSA negotiation and completion. IFL Ventures helped the shareholders realize a strong upfront exit value with earn-out potential.

The transaction value is undisclosed.

“We decided to sell part of our business in early 2020. IFL were on our radar as they had recently represented a similar business and achieved good success in that transaction. We engaged IFL and worked closely with Graeme and his team throughout most of 2020. This included navigating the chaos that Covid brought the world. Graeme, Jenny and Lisa guided us throughout the entire process demonstrating their expertise and patience every step of the way. I have no hesitation recommending IFL.” Mark Cottle – Co-Founder and CEO – Frontline Accounting

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