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Case Studies

Rhythmic Technologies Helps Private Equity Firm Boost Company Value Through Infrastructure Optimization

April 15, 2024      

About the Client

We had the opportunity to work with a private equity team on an intriguing project. The team had acquired a young company from a .com pioneer who hadn’t recognized its full potential. However, they faced substantial challenges. The acquired company had been neglected in some areas, while in others, important parts of the business had been removed or reduced.  

The private equity team understood that they needed to act quickly and decisively. Their primary goals were twofold: first, to stop the company from losing more value, and second, to initiate growth in the business. They saw an opportunity in a struggling but promising company, recognizing that while it had problems, it also had great potential for growth and profit if managed correctly. 

The Challenge

When the private equity team took over the company, they faced a significant challenge: the company lacked even a single infrastructure specialist. Initially, they considered using Amazon Web Services (AWS) as it offered advantages like avoiding upfront capital expenses and the need to hire hard-to-find specialists. Their technology leader, taking a cautious approach, decided to test AWS on a small scale first. 

As they explored AWS further, they realized their specific needs were unique. While AWS offers a robust set of services that work well for many businesses, this particular company requires a more tailored solution. They found that they needed a different balance of cost-effectiveness, performance, reliability, flexibility, and scalability for their specific use case. Ultimately, the private equity team concluded that a more customized approach would align with their business goals and operational requirements. This experience highlighted the importance of carefully evaluating IT solutions against a company’s individual needs and objectives. 

The Solution

When the company’s tech executive realized they needed a more tailored solution for their unique needs, they partnered with us to optimize their infrastructure. We were excited to work with them and provide a comprehensive approach. Our first step was to conduct a thorough assessment of their existing setup and create a strategic roadmap for improvement. We then focused on enhancing availability and resiliency, identifying and addressing the root causes of outages. This effort resulted in achieving 99.999% uptime, which significantly boosted their credibility with enterprise-level customers. 

Working closely with their development team, we helped modernize their systems by strategically eliminating outdated components, enabling them to compete effectively with much larger companies. Finally, we implemented a robust backup and disaster recovery plan, providing geographic redundancy for critical systems and ensuring comprehensive data protection. This gave them a new level of resilience and peace of mind in a practical and cost-effective manner.  

Throughout the process, we collaborated closely with their team, empowering them to create a modern, reliable, and competitive IT infrastructure that precisely met their specific business requirements. 

The Results

The private equity team’s investment, combined with our infrastructure optimization, resulted in a resounding success. The company was acquired by a large organization for a substantial multiple of the initial investment, demonstrating the value created by focusing on infrastructure and partnering with the right provider. Interestingly, the acquiring company initially planned to integrate the acquired company’s infrastructure into their own. However, after seeing our exceptional work, they are now exploring how to incorporate more of our services into their operations. 

As the private equity team begins the process of finding their next acquisition, they’ve recognized numerous organizations with unrealized potential that could benefit from infrastructure improvements. Our partnership has helped them identify the total potential value in these firms, understanding that enhanced web performance and reliability can immediately improve a company’s market position. By prioritizing solid infrastructure, the private equity team can focus on building the business, confident that their collaboration with us will contribute to their next success story.