Tony Yates, CTO of VIX Digital, faced the unexpected and unique challenge of exploring an exit strategy for a business that had never been positioned for sale.
VIX Digital, specialising in engineering velocity within complex healthcare systems, had organically grown since its inception in 2011 and found itself deeply embedded within a client organisation, Livi, a leading digital healthcare provider. The proposition for acquisition arose from VIX Digital’s seamless integration and shared values between the two organisations.
The challenges faced by Tony Yates were multi-faceted. Driven by a passion for impactful work in healthcare, Yates built VIX Digital over two decades with no explicit intentions of exiting, and, as a service-based business without tangible assets, determining the worth of the business, especially in terms of people and contracts, posed a complex challenge.
Facing these challenges, Tony Yates sought the guidance of The Grafter who played a pivotal role in navigating VIX Digital through the intricate process of achieving an eight-figure exit.
Recognising the unique nature of his situation, Tony Yates sought The Grafter’s expertise for a comprehensive approach. Positioned at the intersection of venture building and consultancy, The Grafter brought invaluable real-world experience, offering insights that transcended traditional business growth strategies.
Our differentiated approach was rooted in a deep understanding of the intricacies involved in acquisitions and exits, going beyond the conventional to prioritise the seller’s well-being. Our commitment was to provide not just guidance but a transformative playbook, ensuring the best possible outcomes for all parties involved.
Addressing the critical challenge of balancing impactful work with the potential benefits of an exit, Yates found the support he needed. The Grafter assisted in aligning passion with a strategic exit plan, ensuring the sale of the business landed as a forward-thinking, well-considered move.
Navigating the complexities of valuing a service-based business with few tangible assets is a significant hurdle. Our expertise in this arena ensured a mutually satisfactory agreement, focusing on the intangible value of people and outcomes. We guided Yates through a nuanced understanding of how to value his business, crucial in determining an overall figure and earnout schedule that not only met his comfort level but also provided a high level of control over achieving the agreed targets.
Contrary to the typically prolonged acquisition processes, The Grafter streamlined the journey for Yates, culminating in a swift and efficient four-month timeframe. This expedited process underscored our commitment to delivering results with agility and precision.
Yates’ enduring passion for impactful and challenging work in the healthcare sector, honed over two decades, became a focal point. The consideration of the exit transcended mere strategy; it symbolised an alignment of values and an unwavering commitment to meaningful impact in the healthcare and tech space.
Reflecting on the value of our support, Tony Yates shared:
“It’s far better to work with people who’ve been through this process than people who have not. The Grafter gives great advice and really cares about what it means for the seller, much more than just the sale figure price.”
In the end, our unconventional yet strategic approach culminated in a successful outcome for VIX Digital’s journey toward an eight-figure exit. The acquisition not only met financial expectations but also resonated deeply with Yates, providing a holistic and satisfactory experience throughout the entire process.
Explore Oxford Insights' journey to sustainable growth, leveraging strategic interventions and innovative approaches for commercial success.
Explore how Coltech Global, a tech staffing company, partnered with The Grafter for a transformative journey, resulting in rapid growth and strategic expansion.
Explore how we helped propel AdviseInc towards sustained growth, innovation, and international expansion.