Case Study: $50M Exit - How We Doubled Valuation

This is a real case study from our files.

Company Background

Company: B2B logistics technology provider. Revenue: $22M ARR. Growth: 18% year-over-year.

The Initial Offer

Buyer: Regional private equity firm. Offer: $25M (1.1x revenue multiple).

Our Strategy

We identified all potential buyer types and ran a competitive process.

Step 1: Buyer Universe Mapping

Targeted 9 potential buyers across 3 categories: strategic, PE, international.

Step 2: Research and Qualification

Qualified 5 buyers as serious prospects.

Step 3: Competitive Outreach

Reached out to 5 qualified buyers simultaneously.

Step 4: Competitive Bidding

Managed 6-week process with multiple buyers.

The Result

Strategic Buyer 2 (E-commerce platform): $42M offer. International Buyer: $35M offer. Highest LOI: $42M.

Final Negotiation

E-commerce platform increased to $50M to secure deal. Final sale: $50M (2.27x revenue multiple).

What Made It Different

1. Strategic Buyer Access. The e-commerce platform was not on founder radar. 2. Multiple Buyer Competition. With 5 serious buyers competing, price was bid up naturally. 3. Professional Negotiation. Set a walk-away price and stuck to it. 4. Strategic Positioning. Positioned the business as a strategic asset.

Key Takeaways

1. Initial offers are rarely maximum value. Create competition. 2. Strategic buyers pay premiums. Do not limit yourself to financial buyers only. 3. Broad buyer mapping is essential. 4. Professional advisors pay for themselves. The advisor fee is tiny compared to additional value created.

Timeline

Initial offer: February. Engagement: March. Competitive process: May-June. Deal closed: July.

The Bottom Line

This founders business was worth $25M to one buyer. By accessing a broader buyer universe and running a competitive process, we sold it for $50M.