Arrow Business Communications

Provider of business communication & IT services

Sector
Technology
Region
South East
Date of investment
August 2016
Exit date
January 2020
GCP team members
Website
Contributing Sustainable Development Goals

Background

We began our investment partnership with Arrow in August 2016 to support the founder management team in an ambitious buy and build plan. They are a leading provider of unified communications, IT services and energy to UK business customers.

Through the period of our investment partnership, Arrow proved its position as one of the UK’s most successful consolidation platforms in the ICT market, expanding its product portfolio to deliver a differentiated full service offering including next gen voice, mobility, data connectivity, IT services, ICT systems and energy.

After outperforming the investment plan, with revenue more than doubling and EBITDA trebling. We realised our investment in January 2020 through a sale to private equity to enable the next phase of buy and build.

Driving Growth

  • Hands on support for 8 acquisitions during our investment period, including deal assessment, negotiation, due diligence and funding
  • Introduction of strategic acquisition targets of larger scale from the GCP network
  • Investment in strategic marketing initiatives to enhance product propositions and enable more efficient sales processes

People & Organisation

  • Development of a “succession ready Board”, including recruitment of a new Managing Director, CMO and Commercial Director to enable the founder CEO to step back on our exit
  • Support for Arrowvision culture initiatives, employee engagement and development of an enlarged senior leadership team to support expanded national presence and doubling of headcount

Systems & Processes

  • Investment in data science function, power BI data warehouse and automation for client portals
  • Enhancements to financial reporting and KPIs for decision making

Funding for growth

  • We provided all the funding for the initial transaction, including committed funding for acquisitions, structuring the deal as a true 50:50 partnership alongside existing and new management shareholders and ensuring deliverability
  • We led several senior debt financing rounds to support the extensive buy and build activities

More Realised Investments