Guestline
Sector: Software
Backed By: The Riverside Company
Location: Shrewsbury, UK
Sector: Software
Backed By: The Riverside Company
Location: Shrewsbury, UK
Guestline serves a broad customer base of independent hotels, hotel chains, pub companies and serviced apartments; delivering proprietary hospitality software solutions via the cloud. Guestline’s services essentially pay for themselves by driving up occupancy, average room rate and yield. Guestline is a trusted partner for properties in 20 countries across four continents.
The Riverside Company is a global investment firm focused on being one of the leading private capital options for investors, business owners and employees at the smaller end of the middle market by seeking to fuel transformative growth and create lasting value.
Since its founding in 1988, Riverside has made more than 850 investments. The firm’s international private equity and structured capital portfolios include more than 140 companies.
Riverside invested in Guestline in 2016, in order to support the company’s continued expansion in the UK, grow internationally (including add-on acquisitions), and invest in new technologies to add new products.
Guestline were approached by Advent International, and required a new financial model to support a potential sale.
Houlihan Lokey represented Guestline management during the process, and required a new model to be utilised during the transaction. The existing model, which was being used by the finance team on a periodic basis for budgeting and forecasting, was not suitable for the purposes of supporting a time sensitive deal process.
ARA Advisory provided support to the business in order to rebuild and restructure key elements of the existing model and provide a more integrated and professional model. We partnered the CFO, Head of FP&A, and Director of Finance, and took ownership of any queries during the process relating to the financial model.
We built a brand new, professional, and integrated 3 statement financial model. The model consists of:
We successfully supported Guestline during the deal process. The model was used by Houlihan Lokey, and supported the sell side valuation.
The model has been adopted as part of the ongoing budgeting and forecasting process in Guestline.
