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.
CSR Cosmetic Solutions
The owner of CSR had taken over the business out of bankruptcy. After successfully building it into one of the largest cosmetic contract manufacturers in North America, he was ready for a well-deserved retirement. A previous sale attempt (by a top-tier accounting firm) was unsuccessful in 2015.