Beverage & Alcohol

Exit at 8X TTM Revenue

Background

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?

Solution

  • 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.

M&A Advisory Food, Beverage & Farming
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