V.C.M. Vigilanza Città di Milano is the oldest and best known security service provider in central Milan, Italy’s largest local market for alarm services, with a 2007 turnover of approximately € 25 million.

Gruppo I.V.R.I. with this transaction recovers its position as the largest security service provider in Italy (guards, alarms and cash handling), with total sales of approximately €200 million. It concentrates on regions where it is the absolute leader (including Milan, Italy’s most important market). IVRI is controlled by private equity operators 21 Investimenti and Banca Leonardo, while Prosegur of Spain is a minority shareholder.

Cross Border was appointed by the seller because of its position as the absolute leader in advisory services to this industry in Italy. The transaction proved extremely complex due to a) transaction structure b) very limited timing and c) the company had suffered dramatic declines of sales and profits in the past 3 years. Nevertheless, we registered a record EBITDA multiple (confidential, but well over 10 times). The key to success was in the analysis of operating synergies and working capital trends, which we were able to sustain due to sector expertise.