Investment Banking – Technology

Client

A private Technology company.

Needs

  • Our client needed to raise capital to meet working capital requirements and fund ongoing product development and capital expenditures.
  • One of the three shareholders filed suits against the corporation and its shareholders in an attempt to either gain control or exit his position and recoup his investment.  Legal expenses soared and communication broke down.  The ensuing conflict derailed previous attempts to raise equity through private placements.

Solution

  • Our client hired BlueWater Partners to act as its exclusive financial advisor and pursue a sale of all or part of the company to a qualified strategic buyer.
  • Met with each shareholder individually to understand his or her needs and desired outcomes, and developed a process that preserved each shareholder’s interests.
  • Conducted a comprehensive assessment of our client’s business strengths, weaknesses, opportunities and threats.
  • Developed and executed a marketing plan aimed at a targeted group of strategic buyers located throughout the U.S.
  • Analyzed, negotiated and reviewed potential deal structures and tax implications.

Result

  • Our client was acquired by a strategic buyer at a valuation greater than 25 times historic peak revenues.
  • Terms included cash and stock.  The dissident shareholder recouped his capital contribution, while the other shareholders remain employees of the company, hold stock in the acquiring company and retain the opportunity to realize further value appreciation (the acquiring company anticipates a liquidity event in 3-5 years).
  • A prominent venture capital firm simultaneously funded the acquiring company.

Published with client permission