Background
Compass Consulting is a Southern California-based IT Managed Services Business founded in 1986. Compass
provides cloud & security services, managed services, software engineering, and web development for small
and medium-sized corporate clients. Kinected initially engaged with the sellers in February 2020 and advised
them to secure long-term agreements, increase operational efficiencies, and replace underperforming
employees. The owners, nearing retirement, sought a seamless transition into retirement while preserving
client relationships, employee well-being, and their legacy.
GOALS & STRATEGY
In late 2022, Kinected reconnected with the sellers
and found that they had acted on their advice,
significantly increasing business value. Kinected
prepared the business for sale in 2022, augmenting
the team with a fractional CFO and corporate M&A
attorney. Kinected crafted a custom marketing
strategy that targeted strategic buyers, particularly
those aligned with Microsoft and Citrix platforms.
Compass offered a unique mix of services, including
software development and marketing, requiring a
buyer who saw potential in this diversified portfolio.
RESULTS
In January 2023, Kinected went to market, contacting 209 potential buyers, resulting in 43 signed non-
disclosure agreements and four offers. The Letter of Intent was signed in April 2023, and the deal closed in July
2023, concluding a 6.5-month process. The seller’s objectives were met as they successfully transitioned client
and employee relationships, securing their retirement. Kinected facilitated the entire transaction, beginning
with an Opinion of Value, providing advice that ultimately increased the value and salability of the business,
and leading a process that resulted in a successful sale to the optimal buyer, CIO Solutions. Sellers have praised
Kinected for ‘changing their lives for the better!’
"We just completed the sale of our business, relying on Kevin as our M&A advisor. Kevin came highly recommended
and his extraordinary value and expertise were apparent from the start. He brought in equally extraordinary legal
and accounting professionals that provided clarity and calm to the process. Without reservation, we recommend
Kevin to anyone who is considering selling and wants to maximum value and a process run smoothly with
integrity. The pinnacle of excellent customer service is a customer that turns and says “wow” after their service
experience. We say WOW! Having a partner like Kevin by our side was such a comfort in every way, and the bond
of trust we formed was lasting and priceless. "
Owner
Darin S.
