In July 2023, IMB Partners (IMB) and eTelligent Group (eTel) formally launched a partnership that was months – even years – in the making. After initially learning about a confidential government contracting business in early 2022, IMB Partners kept its ear to the grindstone and was eager to learn more about the company once it officially hit the market more than half a year later.

Fast forward to the summer of 2023, and the IMB-eTel union was finalized. After a rigorous diligence process, both the buyer and the seller emerged with a mutual respect and desire to grow the business through their partnership.

Where It All Began

eTel was at an inflection point as the company entered into the second half of 2022. Business had essentially doubled in two years, and success was continuing to come at a very rapid pace. In order for the team to leverage the growth opportunity in front of them, they needed to scale at a speed that was not possible on their own. To become eTel 2.0, leadership needed more resources.

“We didn’t need someone to come in and run the business for us,” said Rohit Aggarwal, co-CEO of eTel at the time of the transaction. “We needed a partner that could support us, understand us, and provide us the capital investment to scale at the pace that was needed.”

Rohit’s co-CEO, Ritesh Bansal, was in full alignment, adding: “Rohit and I are young and have many of years of work ahead of us. This transaction wasn’t about us cashing out. This was about finding someone to invest in us and help us grow our company and our leadership team, so we could take things to the next level.”

Enter IMB Partners

Though eTel received several bids from buyers across the market, Rohit and Ritesh knew early on that IMB was the right partner for them. The IMB team was warm, professional, and interested in the ins and outs of eTel’s business model. And when it came down to it, IMB’s investment thesis felt like a perfect fit.

“I’d kind of half made up my mind, even before seeing all of the other offers,” admitted Rohit. “I knew that this was the team I wanted to go with. It just felt right.”

As anyone who has ever gone through a transaction knows, the process is never without challenges and adversity. Throughout the due diligence process financials changed drastically from the time the LOI was signed to the start of diligence – in that timeframe alone, eTel saw 20-25% growth. Both the IMB and eTel teams were comforted in seeing their teams and counterparts work collaboratively to find outcomes that would work for everyone.

“This whole deal was built around trust and credibility,” said Rohit. “We built that trust along the way. We discussed any issues that came up. We kept a very open dialogue. And IMB was very, very direct with us. They didn’t have to tell us certain things upfront, but they did. And it helped a lot.”

Another factor the eTel team found enticing was that IMB implements the Entrepreneurial Operating System® (EOS) with all of their portfolio companies. eTel made the decision to employ EOS before they even went to market, so knowing that the two teams already had alignment on such an important strategic matter – and, in turn, knowing that IMB really “walked the walk” – added additional excitement to the union.

So Where Are They Now?

Despite being less than six months into their partnership, eTel is not surprised that IMB has already executed on a number of matters that were discussed during the deal process.

“IMB was very prepared throughout the process,” noted Rohit. “The 100-day plan was fleshed out from the get-go. They were very true to it, and so far, have helped us expedite and fast-track the goals we set.”

IMB has brought in various support systems post-transaction, including operational and financial roles. IMB has used its vast rolodex to build out eTel’s team with supplemental personnel. And, of course, the EOS implementor was introduced very early on.

“We have learned a lot about our company in just a few months,” said Ritesh. “EOS, in particular, has given us a platform to align with one another, get more clarity, and get everyone on the same page. We now realize that everyone has had their own specific visions, and that was a big eye opener for us.”

“Now, along with all of the original growth opportunities, this partnership will help us achieve eTel 2.0.”