The Situation
Intelligenz is an international recreational management software platform that facilities, athletic centers, and operations teams use to promote internal efficiencies, improve their workflows, and provide seamless end-user experiences. Having developed a relationship on a previous transaction in the last year, the company’s founder approached Ascend about selling most of the business while maintaining ownership of its services in one sector. The Intelligenz team knew we understood the market and would be able to navigate the challenges of selling an international business while achieving their unique transaction requirements. We guided Intelligenz through the lifecycle of the transaction, including:
- Organizing and preparing the company for a limited sale process, including a bottom-up financial consolidation model, KPI deep dive analysis, and customized positioning materials
- Facilitating communications with a limited and thoughtfully curated buyer group
- Shepherding the company through various cross border intricacies related to Canada, U.K. and Australia in order to optimize deal structuring and provide a seamless transition through closing
- Defining growth opportunities by buyer group to create a competitive environment, even among limited buyers, thereby optimizing valuation and terms
- Negotiating letters of intent and terms to ensure the seller’s unique deal requirements were met
Industry
- Software & Technology
Client Type
- Owner/Founder
Services Provided
- Sell-Side Transactions
Press Release(s)
READ INTELLIGENZ PRESS RELEASE
The Strategy
Intelligenz is a powerful product that combines an annual subscription model with a payment platform. As one of the few remaining recreation management platforms that had not been acquired, we carefully outlined the unique growth opportunities the company represented for various types of buyers, which we sorted into three buyer groups. The first buyer group focused on the recreation management space, the second on the payment platform, and the third offered services to municipalities and government agencies. We presented a unique vision to each buyer group, demonstrating how they could continue to expand the business with their respective resources and specific market opportunities.
The Execution
After presenting the specific growth opportunities to a limited set of buyers in each group, we received six LOIs. In reviewing potential partners, we looked for maximum value, as well as a partner that would be amenable to the founder’s continued use of a limited portion of the IP she had developed. We helped negotiate a deal where both parties were comfortable with the IP usage, and the founder achieved her objectives.
The Results
Despite an existing initial connection between the buyer and seller before Ascend was engaged on the deal, our team successfully negotiated a more advantageous offer for our client through the thoughtful presentation of growth opportunities and a limited competitive process. This ultimately increased the company’s valuation by 50% and secured the critical IP licensing agreement for the founder.
The Ascend Advantage
Our team’s understanding of the market and guidance on the sale and exit of the company were integral to achieving all of the seller’s transaction requirements. We were able to package and present the business in a polished manner, work through the complexities with each party, and manage the buyer communication to meet our client’s needs and drive maximum value.
Next Up
Innovative recreational booking and management software platform with unique transaction requirements gains a partner with long-term strategic planning and operational expertise while satisfying complex deal requirements.
Innovative recreational booking and management software platform with unique transaction requirements gains a partner with long-term strategic planning and operational expertise while satisfying complex deal requirements.