AcquihiringAcquisitionOnline redeemable eVouchers

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ABOUT THE CLIENT

Our client is a reputed fast-growing company in the business of offering Online redeemable eVouchers for large corporates, small and medium enterprises and start-up companies.

 

CLIENT BRIEF

The specific brief of the client was to acquire talent (Acqui- Hire) that can help bolster its Brand through digital marketing and at the same time significantly improve its online presence. The client also wanted to acquire an ongoing online business that would be accretive to its future product lines. Buy vs. Build was the direction given to Startup Login.

 

SOLUTION OFFERED

Acqui-Hire and Business Acquisition: Target Market Sectors
We were able to identify an upcoming Start-up that was a provider of digital marketing and application development services with over 30 Clients across sectors. They were in the digital marketing space and specialized in online marketing services tailor-made for the target sectors.

 

OUTCOME OF CASE 02/21

Acquihired plus smooth transfer of customer base Size of Deal: INR 70 Lakhs (Excluding Equity offered)

 

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:
2/21
Date:
17 June 2021
Author:
Sunita Kumari
Service:
On-line digital marketing platform
Founded In:
2018
Sold In:
2021
Funds Raised:
None, Bootstrapped
Market:
Sector expertise (confidential on client request)
Model:
B2B, Service
Status:
Revenue generating with ongoing clientele.
Revenue:
Approx. INR 50 Lakhs
Asset Acquisition:
Team acquisition + Business transfer
Special Conditions:
For Team: 30-40% hike for tech team For the founder: 40% hike + Bonus + Equity in the company. High-value Clients transferred to the Client.
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