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.
Versature is a rapidly growing Canadian VoIP service provider that had been through an unsuccessful sale process with another corporate finance firm. FirePower’s M&A Advisory team crafted a story highlighting Versature’s strong growth, brand, people and processes. The most compelling offer came from net2phone, a subsidiary of US public company, IDT. Under this new ownership, Versature is well-positioned to accelerate its growth trajectory.
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.