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LEAP Group was formed to acquire the assets of Metal Networks, an online quoting platform for metals distribution and procurement based in Austin, Texas.
LEAP Group's shareholders had not concluded a cross-border transaction, nor had they bought software assets from a pre-eminent venture capital firm before. They sought FirePower's help negotiating price and terms for Metal Networks.
LEAP brought our M&A Advisory team into the transaction at an advanced stage, and discussions were stale. We proposed fresh ideas on three contentious deal points, and retained new legal counsel (Texas-based, instead of Ontario-based) for our client, which helped resolve a few more issues.
Due diligence resumed with our guidance, and the deal closed shortly thereafter. Our insertion into the deal proved to be a catalyst that led to a win-win conclusion.
Our client, a software distributor, sought to optimize the pricing of its products and the incentives of its salesforce . Within the 3-month duration of the VMX exercise, EBITDA run-rate increased by 15%, with visibility into more increases down the road.
Last Call Analytics
When FirePower first met Last Call Analytics, the company was building custom big data analytics and visualization software platforms for frontline sales staff, primarily of beverage & alcohol distributors, but also for clients in other industries. Last Call needed capital to grow, as well as strategic guidance to develop a stronger revenue model and focused direction. FirePower invested both capital and hard work, shifting the revenue model, focusing its resources, and ultimately, helping the company achieve its potential.