Distribution 'Light'
Equanet’s founders were looking for a financial partner to help them realise a partial stake in their business and put in place a management structure for the long term.
Equanet was one of the largest resellers of Intel and Microsoft-based products in the UK. Graphite worked with the founders to structure an investment allowing them to retire from operational management and secure their financial position.
Equanet was a demand-led business, operating a stockless, indirect supply model that is highly scalable and unique in the industry (80 per cent of orders are shipped directly from distributors to Equanet’s customers). The company was recognised as a leading supplier of computer hardware and software to medium and large public and private sector organisations. The founders agreed to reinvest a substantial proportion of their proceeds from the transaction and remain involved in non-executive capacities.
Under Graphite's ownership, Equanet:
- reshaped its management structure, with new directors being appointed and the founders becoming non-executives
- strengthened its business model further through electronic integration of the supply chain with direct links into supplier warehouses
- grew turnover and operating profit substantially
- consistently converted profit into cash, redeeming a substantial proportion of Graphite’s investment ahead of plan
In 2005 Equanet was sold to Dixons Stores Group, generating a multiple of 2.2 times cost and allowing the founders to retire.
