18 Aug Revenue Rocket makes Inc. 5000 list as the one of America’s fastest growing companies
This premier M&A advisor for IT Services firms continues to find opportunities that separate them from the pack.
We often look at M&A as something fueled by economic growth, or emerging technology reshaping an industry, but to this Midwest strategic consulting and M&A advisory firm, growth is something that can be planned and strategically orchestrated.
Founded in 2001 by Mike Harvath, Revenue Rocket Consulting Group LLC is a boutique advisory firm with clients in IT services markets. With a world class team based strategically throughout the United States, they have a refined lens on being able to assist buyers and sellers find the ideal match that not only satisfies the initial transaction but that provides a comprehensive roadmap throughout the integration process. Their focus on excellence in everything they do has led to hundreds of successful transactions since their inception. They pair an M&A practice with growth strategy consulting, allowing them to see the best path to growth in organic and in-organic ways.
The company is proud to announce its inclusion in the Inc. 5000 list, one of America’s fastest-growing privately held companies as the only premier M&A and growth strategy advisor for IT Services companies to make the list.
So, how did they get there?
It’s all about Focus.
Revenue Rocket follows the same advice it gives to clients: focus on one specialization for one market, becoming the top provider for your niche. They have been working exclusively on the behalf of IT services companies who are often managed service providers, application integration & implementation specialists or custom application development firms. By narrowing down on this market, Revenue Rocket knows intricate details that can make or break a deal or growth strategy.
In 2019 the company completed a record number of transactions in the technology and peripheral markets that support the IT services industry. Leveraging their knowledge and expertise they are able to quickly identify likely outcomes and opportunities their clients could expect before, during, and after a transaction.
A few examples of the “Before process” include a robust plan of the growth options existing for the acquiring firm. While acquisitions often make this list, it is common that a company needs to make a few adjustments to its operation and financial performance before the “right deal” can be architected. Revenue Rocket leverages a proprietary methodology, “SVP” which has helped hundreds of IT Services companies around the world, “sharpen their sword” and improve their business performance by picking a specialization, vertical market, and productizing service offerings. This program ensures a firm is ready to be packaged up as a buyer, seller, or even just to outline an accelerated organic approach to growth or restructuring, to enable its preparedness for a transaction or a successful long-term path to sustainable growth.
During an M&A process, Revenue Rocket helps both buyers and sellers navigate the complex components of structuring a deal, conducting due diligence, cataloging risk and unknowns and shaping definitive agreements consummating the transaction. These agreements, while typically drafted and approved by a firm’s counsel, rely on Revenue Rocket to properly capture critical details including add-backs, financial due diligence, material change in control components such as existing debt, employee and officer exit plans and other items that if not properly orchestrated and documented almost always turn into costly litigation and more importantly a negative outcome for the combined new business.
After a transaction is complete, the real work starts. The project plans put together by Revenue Rocket extend beyond close to ensure continuity to the agreed plan and eventual value creation for both sides. Too often we read about transactions that fall short of expectations from the accretive natures defined and sold to the shareholders and almost always these breakdowns happen because after a deal is complete, it’s back to business but the integration is not complete. “It is imperative that our clients continue to follow the plan and complete the post-transaction integration as laid out in the agreed-to plan. Having our resources stay engaged throughout the process ensures that a neutral party drives this to conclusion,” said Mike Harvath, CEO and Founder of Revenue Rocket.
In from 2017 to 2019 the company completed a record number of transactions that effectively doubled the size of their business, 88% to be exact. The target market, comprehensive approach, clearly defined process, and talented resources such as industry-leading analysts, CPA’s, and deal negotiators ensure that not only the right expertise are in the deal but that the availability, priority, and timelines are in complete control through the process to ensure the parties get the results they forecasted in the timeline most optimal to both sides.
“This is a critical component to our growth,” said Mike Harvath. “Without having control of the entire value chain relating to the transaction we can’t ensure timely deals. Demand is high! As customers speak our praises, and the industry, while big is also small, our reputation is what we hold most dearly, so failure or mistakes are not an option for our team.”
The growth seen by the firm has rocketed them onto the Inc. 5000 list for 2020. They ranked 3978 on the list of all companies in all industries and represent the only privately held company M&A Advisor exclusively focused on the IT Services marketplace.
While COVID-19 has changed the outlook and landscape for the industry, Harvath said they showed no signs of slowing down. In fact, they anticipate larger growth in 2020 as more and more consolidation makes its way into the path of recovery for firms offering IT services to the most positively impacted categories in business. Working-from-home trends have drastically increased dependability on technology from an access, ease of use, and security perspective as companies struggle to establish infrastructure to safely operate in a remote capacity. This is a recipe for major consolidation as the amount of capital needed to meet demand as a whole is astonishing and as such combining companies and driving operational and intellectual property integration makes a lot of sense.
Since Revenue Rocket began, the company has been using a “work from anywhere” model with staff and clients from all over the country and even the world. Rarely does Harvath and his team meet a client face to face. This model has worked for the firm since well before the pandemic and stay-in-shelter orders. The company believes and has shown successfully for almost 20 years that deals can get done from anywhere without the distraction of long travel, commutes, and expenses that come from it.
This Midwest group has set a new standard in M&A and growth strategy consulting and is likely to continue to see record growth as it further separates itself from the pack.