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.
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.
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)
- 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:
- 17 June 2021
- Sunita Kumari
- On-line digital marketing platform
- Founded In:
- Sold In:
- Funds Raised:
- None, Bootstrapped
- Sector expertise (confidential on client request)
- B2B, Service
- Revenue generating with ongoing clientele.
- 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.