Beverage & Alcohol
Exit at 8X TTM Revenue
Our client, a software publisher for the beverage industry, was searching for new sources of revenue as it faced increased competition in its core sector. Management knew its data-heavy platform could be leveraged elsewhere, but where and how?
- After a full review of our client’s platform, the VMX team ran a review of external data sources for signals in industries that could be attractive.
- A sector landed at the top of the list, which substantiated management’s ‘hunch’.
- The team developed new key performance indicators relevant for that sector, delivered through interactive dashboards.
- It also collected 3rd party customer and market data and combined it with internal data to deliver new insights.
- The team created a segmentation model and representative customer personas based on key differences in demographics and behavioural patterns.
The exercise was close to delivering new sales in the new sector; however, before those materialized, the company accepted an offer to be acquired at 8x TTM revenue, an extremely compelling valuation largely due to its efforts in that new sector.
TFI is the largest distributor of specialty food preparation equipment and training programs in Canada, supplying over 10,000 locations. FirePower's M&A Advisory team advised management on the buy-out of existing shareholders.
Applied Comfort is a designer and manufacturer of non-standard HVAC systems for commercial, industrial and institutional facilities. FirePower guided the company in its search for a strategic partner, concluding a transaction with a UK-based strategic, with a complementary product portfolio and distribution capabilities.