with Keegan Dumb · Egenuity
LenderHawk analysis. Not affiliated with or endorsed by Acquiring Minds.
The business offered recurring software revenue with growth potential in a fragmented vertical market, attractive to search fund criteria, and presented an opportunity to operationalize and professionalize a business with significant pain points in customer support and logistics.
Within the first year, invested in team and operations which temporarily reduced EBITDA to a few hundred thousand dollars but grew recurring revenue approximately 20 percent; acquired by a strategic competitor about 18 months after initial purchase at approximately three times the acquisition price, with the buyer offering the seller a continued equity stake and employment package worth as much as the original exit.