Professional services biz BlueRock seeks growth capital partner

afr.com:

BlueRock hashired Ad Astra and Clearsight Advisors, the corporate adviser’s affiliate in the United States, to advise on a capital raise and find a capital partner to help it supercharge its growth, Street Talk can reveal.

BlueRock isn’t your average professional services firm. Its eccentric Melbourne headquarters features a giant chessboard and a sombrero-wearing unicorn. 

Sources say a range of options is on the table, including bringing on a strategic capital partner or selling the business. However, the Melbourne-headquartered professional services firm is understood to be preferencing the former, hoping to clinch a deal by the end of the year.

BlueRock is estimated to be valued above $120 million. It’s forecast to generate more than $70 million in revenue and more than $10 million in EBITDA in FY24. Its revenue has grown 40 per cent year-on-year from around $21 million in 2020 to $56 million this year thanks to increased market share and client cross-sell, adding on services like legal advice for the business or estate planning. A steep rise in service sector inflation has also surely helped fuel revenue.

Founded by tax accountant Peter Lalor in 2008, BlueRock delivers professional services to small-to-medium enterprises. The business is loosely split into two divisions – Your Business, which covers traditional services like tax advisory, payroll and digital transformation, and Your Life, which offers services for individuals like financial planning and family trust administration – and operates as a “one-stop shop” service provider for entrepreneurs with more than 300 staff on the payroll.

Proceeds of the raise will be used to invest in developing the firm’s workflow automation and AI technology and marking