Case Study: BillMatrix
Explore this investment
- Liquidity for Early Stage Investors
- Ability to Respond Quickly
- Unleveraged Capital Structure
- Relationship Intermediary on Sale
Entrepreneur Scott Walker had spent years building his business, and believed his payments company, BillMatrix, was poised for rapid expansion. His early stage investors, however, wanted liquidity. At the same time, Scott did not want to burden his growth prospects with a leveraged balance sheet in a typical private equity leveraged recapitalization. So, Scott needed a partner that wasn’t the typical private equity firm.
GHP had initially met Scott and his team in 2002 as part of Great Hill Partners’ research in the transaction processing sector. Due in large part to our market knowledge and our ongoing relationship, GHP shared Scott Walker’s vision, and we were able to close a transaction in less than 30 days that provided liquidity to the original investors. Importantly, GHP was willing to complete the deal on an all-equity basis, allowing the company to focus solely on growth.
Scott commented, “I was very impressed with GHP’s sector knowledge and perseverance. Not many private equity firms follow a company for years. As a result they were able to close a deal in less than one month when the opportunity arose.”
When it came time to sell the business, GHP introduced one of its relationship bankers to the process, which resulted in the sale of the business to Fiserv, Inc. for over $350 million.