Confidential automotive software business
An Australian automotive software business held an unsolicited $3M offer. Exit Advisory Group repositioned the business, ran a competitive process and closed a $15.5M strategic acquisition: a 5× uplift on the opening offer.
Lead adviser: Mark Levitt
The short version
An Australian automotive software business received an unsolicited $3M acquisition offer. Exit Advisory Group ran a competitive process targeting strategic buyers, repositioned the company against the wider second-hand car wholesale market and closed at $15.5M, 5× the opening offer.
Deal facts
Client
An Australian software provider to the motor vehicle industry, with close to four decades of innovation in dealership support systems. The business sat on long-standing customer relationships and a defensible position in the Australian automotive sector.
Challenge
The owners had fielded numerous acquisition approaches over the years. None of them met their financial expectations, including a recent $3M offer that did not reflect the strategic value of the business.
These ad-hoc approaches had proved inconsistent. The owners wanted the structure and process that would deliver the right outcome, and engaged Exit Advisory Group to run the transaction.
Approach
Our initial assessment confirmed there was room to materially exceed the current market expectation. We repositioned the business against the wider second-hand car wholesale market, surfacing the strategic value of the platform rather than presenting it as a financial-buyer asset.
We then ran a competitive process. Financial buyers expressed interest but did not match the valuation potential of a strategic acquirer. A leading wholesaler in the second-hand car industry emerged as the right fit, with extensive experience in the relevant market and clear synergies with the software's existing customer base.
Read more about the VALUE360™ framework we use to assess and lift transferable business value.
Outcome
The deal closed at $15.5 million, a 5× uplift on the $3M opening offer from the earlier prospective buyer. The acquirer secured a strategically aligned platform with substantial synergies; the owners exited on terms that reflected what they had actually built.
Timeline
Close achieved through a structured competitive process.
“From the beginning of this project's campaign launch, there were multiple interested buyers. While multiple parties expressed interest, financial buyers didn't match the valuation potential of a strategic buyer. The strategic buyer emerged as the ideal fit due to their extensive experience in the relevant industry, aligning seamlessly with the software's offerings. The resulting deal, valued at $15.5 million, is expected to yield substantial returns through synergies within a short timeframe, a mutually beneficial outcome.”
Mark Levitt, Principal Adviser, Exit Advisory Group
Common questions
More case studies
Almost 45% above initial valuation
~45% above initial valuation, sold to Ei Electronics in 10 months
Brooks Australia
Brooks Australia, the leading supplier of fire detection products in Australia and New Zealand, was acquired by Ei Electronics. Exit Advisory Group's five-year engagement delivered an offer almost 45% above initial valuation estimates, with a sale completed 10 months after going to market.
Lead adviser: Simon Bedard
Read the Fire & Safety case study
9 months to close, global strategic acquirer
Acquired by Bentley Acceleration Initiatives in 9 months
Eagle.io
Eagle.io's cloud-based environmental IoT platform was acquired by Bentley Acceleration Initiatives, the strategic investment fund of Bentley Systems. Exit Advisory Group ran the process from engagement to close in nine months.
Lead adviser: Mark Levitt
Read the Software (SaaS) / Environmental IoT case study
Acquired by AGL, one of Australia's largest energy providers
Acquired by AGL to scale Australia's bioenergy capacity
Energy360
Energy360, an Australian biogas systems provider, was acquired by AGL. The transaction aligned with AGL's strategy to meet rising demand in the bioenergy industry and contribute to a zero-carbon future.
Lead adviser: Simon Bedard
Read the Renewable Energy case study
Tell us where you are. We'll tell you what's possible. Or call us directly on 1300 133 540.
Last updated . Case studies are reviewed at least quarterly; figures are taken from the original engagement and have not been embellished.