Mergermarket*, January 27, 2022
Riskonnect, a Kennesaw, Georgia-based risk management company, has a larger capacity for M&A targets after a recapitalization and expects about two acquisitions per year for the next two years, said Andrea Brody, chief marketing officer.
TA Associates in 2021 took an 80% stake in Riskonnect, which had previously focused on buying companies with less than USD 10m in revenue. It now expects to target businesses with revenue between USD 1m and USD 60m, she said.
Brody said the company is in negotiations with several acquisition targets in Europe and in the US. None have yet signed letters of intent, she said.
Riskonnect anticipates a four-to-five-year timespan of capital backing from TA Associates, which is looking for a 4x-5x return on its investment, Brody said.
Multiples in the risk management sector have been running about 8x-12x annual revenue, she said. The company sees a growth opportunity in providing environmental, social and governance (ESG) verification and compliance, and it acquired ICIX in 2021 to accelerate its capabilities in that area.
Brody would not disclose Riskonnect’s financials but said the company has managed double-digit year-over-year revenue growth.
Acquisitions could help serve existing clientele and facilitate growth internationally, Brody said.
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