AcquihiringAI and Computer Vision Niche

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ABOUT THE CLIENT

Our client was a US-based leading provider of IT services suite solutions with advanced and emerging technologies in the field of AI and Deep Tech.

 

CLIENT BRIEF

The client wanted to Acqui-Hire niche start-ups in the areas of AI and Computer Vision to augment their growth strategies. The focus was on real hands-on experience in emerging technologies with product development capabilities.

 

SOLUTION OFFERED

Acquisition
We were able to identify a Hyderabad-based technology solution provider who had developed capabilities to provide real-time analysis of the video footage system using AI. The company was evaluated solely on its technical capabilities and ability to build products using similar technologies.

 

OUTCOME OF CASE 04/21

Acqui-hired 5 valuable resources with the Size of the Deal being INR 80 Lakhs

 

OUR APPROACH
  • Understand the Acquirer’s interest and focus
  • Evaluate the acquisition target on Product, Team and Business
  • Work on a valuation method that suits both the Acquirer and the Startup

 

FREQUENTLY USED VALUATION METHODS
  • Market Multiplier on Sales or EBITDA
  • Cost-to-Duplicate for early-stage Startups (pre-revenue and 1-2 into revenue generation)
  • NPV/DCF for healthy (with sound EBIT) Services companies
  • Hybrid method

 

Case Number:
4/21
Date:
17 June 2021
Author:
Sunita Kumari
Product:
SaaS, Video Surveillance and Analytics using AI
Founded In:
2018
Sold In:
2021
Funds Raised:
Bootstrapped
Revenue:
Life time revenues of INR 20 Lakhs
Asset Acquisition:
Acquihire of the Team with option to cash out
Special Conditions:
40% hike for tech team (5-member) For the founder: A cash out worth 1-yr CTC with 40% hike Heavy Bonus (Founder did not join the Acquiring Company)
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