Equanet

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 was highly scalable and unique in the industry (80 per cent of orders are shipped directly from distributors to Equanet’s customers). The company had established itself 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.

Key Business Achievements

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

2.2 x

Return on Graphite's Investment

Business Exit

In 2005 Equanet was sold to Dixons Stores Group, generating a multiple of 2.2 times cost and allowing the founders to retire.