CASE STUDY  |  SOFTWARE (SaaS)

From an Initial $3M Offer to Closing a Strategic Deal at $15.5M

OVERVIEW

Exit Advisory Group led a strategic sale for a software provider in the motor vehicle industry, known for its innovative dealership support systems for nearly four decades. Our targeted approach attracted significant interest and a competitive pool of high-quality buyers, ultimately facilitating a $15.5M exit.

Read the full success story below.

the situation

Our client is a leading player in Australia's automotive software sector. Over their ownership period, numerous potential acquirers approached with offers that did not meet their expectations, including a proposal of $3M. Knowing that they could potentially be worth more and recognising the need for expert guidance through the valuation and business sale process, the business engaged Exit Advisory Group.

EAG SOLUTION & OUTCOME

After a thorough financial analysis, we offered an expert valuation range to our client. This allowed us to develop a targeted approach to build significant interest and attract a competitive pool of buyers who aligned with the valuation number. It also helped disqualify low quality buyers. Through this process, Exit Advisory Group identified an opportunity with a leading wholesaler in the second-hand car industry.

By aligning our client's software offerings and growth trajectory with the strategic buyer's needs, we were able to secure an acquisition valued at $15.5 million. This was a remarkable 5X increase from the initial offer of $3 million by a previous prospective buyer. Our tailored approach and in-depth market knowledge were crucial in securing a better deal.

This success not only highlights the potential of our client but also showcases the value creation and strong strategic advice EAG provides. As Trusted Advisors, we are committed to strategically positioning our clients for success and achieving exceptional results.

OUR services

Business Valuation

We provide a thorough business valuation to get a complete picture of your current business performance and understand your unique value drivers.

Business Sales

We take our clients through a tried and tested process that saves them time, money and gets them the exit they deserve.

Business Exit Planning

We take our clients through a systematic process so they can understand their options and develop a clear road map for their exit.

In negotiations, the primary focus was on securing an optimal price. 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 ADVISOR | Exit advisory group

The Advisors Involved


Mark Levitt

Mark Levitt

PRINCIPAL ADVISOR | EXIT ADVISORY GROUP

Mark is a highly experienced Chartered Accountant with 30+ years of financial and commercial expertise. With a background in various industries and organisations, including the Big Four accounting firms and banks, Mark has a broad range of skills.


He specialises in providing consulting services to SMEs, utilising his knowledge in business turnarounds, restructuring and capital raising. Mark's experience as a previous business owner gives him invaluable insight into the needs of fellow entrepreneurs looking for successful exits.

Qualifications
  • Licensed Business Broker
  • Member of the Chartered Accountants Australia and New Zealand
Simon Bedard

Simon Bedard

FOUNDER & CEO | EXIT ADVISORY GROUP

Simon is an experienced professional with 20+ years in finance, investment, and technology sectors, working for top institutions such as Australia's largest bank. As an investment advisor, he worked with high-net-worth clients and private companies, and as an entrepreneur, he started, bought, and sold companies. 


He is also actively involved in several technology start-ups and is passionate about helping business owners build value in their companies. Simon's knowledge of key value drivers ensures business owners can achieve their full potential when exiting their business.

Qualifications
  • Licensed Business Broker
  • NSW Chair of the Australian Institute of Business Broker
  • Member of the Australian Institue of Company Directors
  • MBA (With Distinction) | RMIT University

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Whether you want to sell your business now or grow to a desired valuation, let our expert game plan guide you to success!