Alemba & InfiniteCFO:
Leveraging strategic financial support on the path to a successful exit

Alemba is an established UK business providing enterprise service management solutions for IT, human resources, and facilities management. Alemba Service Manager is a highly functional, ITIL-compliant IT Service Management tool with a specific focus on request fulfilment. Backed by 25 years of heritage, Alemba Service Manager enables users to respond quickly to business demands by dramatically reducing the time from request to fulfilment through automated workflow integration.

The founders of Alemba had built the business and were ready to look for their next chapter. As they prepared to solicit possible acquirers, they found they were having challenges building a compelling story around the financial position of the company. Like many growth companies, Alemba had a day-to-day tactical accounting and bookkeeping resource but lacked strategic finance skills. Underneath it all they knew they had a profitable business but the numbers weren’t explaining why.

With a referral from EY, Alemba’s CEO Simon Nugent engaged InfiniteCFO to help the company create a narrative that would prove attractive to potential acquirers.

Untangling the financials.

When InfiniteCFO got started, Alemba’s financials were showing a confusing revenue and profitability picture, not helped by the complex corporate structure of multiple entities in various countries. The Alemba team knew they had a profitable business with cash in the bank, but the numbers weren’t reflecting it, and they couldn’t explain it to suitors.

InfiniteCFO dug into the revenue side to understand why billing and cash flow weren’t matching the statutory accounts.  With the existing finance team having limited visibility into what was happening in the sales and project management teams, the InfiniteCFO team focused on understanding the business and the booked vs. recognized revenue relationship.  By doing this, they were able to build visibility into Alemba’s monthly recurring revenue (MRR) and so track revenue and renewals more accurately.

Building a compelling story.

The reporting structure InfiniteCFO put into place enabled Alemba to track new business better, categorize cohorts of customers, forecast renewals, and generally analyse information in various ways, improving how the Alemba team ran the business generally.

With reporting and the numbers now making more sense, InfiniteCFO got to work on building a financial model that would explain the P&L and the vision of sales growth in a way that would appeal to investors and potential acquirers, with many of Alemba’s historical budgets having being built on a cash rather than accruals basis.

The team also worked to assist Simon & co-founder Laurence Scott-Mackay with how the models would help them tell the story.  InfiniteCFO worked with the Alemba team and their advisors to build the business case and presentation and attended investor sessions to provide more detail on the revenue and growth models.

Once Alemba was attracting more serious interest from the investment community, InfiniteCFO initiated its best practice process to ensure due diligence could run quickly and smoothly. The team set up a full data room to host the detailed P&L and supporting documents. Once they found the right investment partner, full due diligence kicked off quickly. InfiniteCFO provided oversight of the financial due diligence and SPA contract negotiation.

Mission accomplished.

In June 2022, Alemba successfully completed the sale of the business to Volaris Group, and InfiniteCFO continues to assist Alemba.

“The team at InfiniteCFO not only provided the finance function infrastructure support we needed to get our financials in order, but they were instrumental in helping us build the story to accurately reflect the complete picture and health of our business and also demonstrate our growth potential. Their guidance and oversight of our due diligence process were key to the success of our acquisition by Volaris. It was an absolute pleasure to work with the team, who were utterly professional throughout all the twists and turns and always there to support us when we needed it,” Simon Nugent, CEO, Alemba.