Breakdown: Successful $120M Tech Exit - Step by Step
This is a detailed breakdown of a $120M technology exit.
Company Overview
Company: Enterprise software technology provider. Industry: B2B SaaS. Revenue: $85M ARR. Growth: 22% year-over-year.
Phase 1: Preparation (4 Months)
### Month 1: Strategic Assessment Comprehensive business valuation, competitive landscape analysis, buyer universe mapping, readiness assessment.
Months 2-3: Documentation and Cleanup
Financial preparation: 5 years of statements audited, tax returns prepared, revenue analysis, KPIs documented.
Operational preparation: SOPs documented, org chart mapped, key employee retention agreements.
Legal preparation: Corporate records organized, IP portfolio documented, compliance review.
Month 4: Materials Development
Teaser, CIM, management presentation, financial model, Q&A document.
Phase 2: Buyer Identification (2 Months)
### Strategic Buyers Identified 8 Fortune 500 companies in related spaces with recent acquisition activity.
Private Equity Buyers
Identified 5 PE funds with $500M+ AUM focused on enterprise software.
International Buyers
Identified 3 international conglomerates seeking US market entry.
Total: 16 potential buyers. Qualified: 8 high-priority targets.
Phase 3: Competitive Process (3 Months)
### Month 1: Initial Outreach and Teaser Sent custom teaser to all 8 high-priority buyers. 6 requested CIM (75% response rate).
Month 2: CIM Distribution and Management Meetings
Management presentations with all 6 buyers.
Month 3: Due Diligence and Offers
Virtual data room access, 4-week diligence period, management interviews.
Offers received: Strategic Buyer 2: $115M LOI (highest), PE Buyer: $95M, others: $102-110M.
Phase 4: Negotiation and Closing (2 Months)
### Final Offers Strategic Buyer 2: $120M (walk-away met), Strategic Buyer 1: $118M, International: $115M.
Selected: Global tech conglomerate at $120M.
Due Diligence to Closing
Final diligence: 6 weeks. Purchase agreement: 4 weeks. Closing: August.
Deal structure: Purchase price $120M (1.41x multiple), cash at closing $108M (90%), earnout $12M (10%).
Key Success Factors
1. Strategic Buyer Access. The winning buyer was in our initial map. 2. Preparation Quality. Clean financials, complete data room, documented operations. 3. Competitive Process Management. Controlled information flow, transparent timeline. 4. Negotiation Excellence. From $115M to $120M required skill.
Timeline Summary
Phase 1: 4 months. Phase 2: 2 months. Phase 3: 3 months. Phase 4: 2 months. Total: 11 months.
Lessons Learned
1. Preparation is foundation. 2. Broad buyer mapping pays. 3. Multiple LOIs create leverage. 4. Patience in competitive processes pays. 5. Professional advisors matter. 6. Focus on total deal value.
Post-Closing
Transition: 6-month founder consulting. Management team: 95% retention. Business performance: 15% growth.
The Bottom Line
This $120M exit was the result of methodical preparation, broad buyer identification, a well-managed competitive process, and excellent negotiation.