The MarTech company had an Investment Banker but was not happy with the quality of leads shared by them. Moreover, target recommendations from IBs did not meet all the relevant boxes for the customer. Their Investment banker had a small basket of ‘ready’ sell-side mandates in the MarTech vertical; also they had not worked in this space previously. A few qualification KPIs were very specific to the Digital Marketing sector, and collecting data points on these KPIs was also proving to be a challenge for the IB.

“We have a US Investment Banker but they have been struggling in delivering good leads, both - quantity & quality wise. For the few that we get from them, they have important KPI details missing. We are looking for a partner who can bring us relevant deals with the KPIs that would help us with  faster decision-making.”

The MarTech company wanted to do a transaction at the earliest and needed a strong deal-sourcing partner that could quickly bring ‘Ready to Transact’ opportunities to the table. With a clear set of requirements for their mandate, they partnered with GrowthPal to identify the US, Canada or Europe-based agencies for their acquisition/strategic investment requirements.

Having understood the requirements, the GrowthPal team quickly identified a ‘mandate level’ universe of 600+ sell-side companies from GrowthPal’s rich database to find matching companies. Using GrowthPal’s AI/ML algorithms we found that approximately 150 of these were highly relevant for the customer.

A  team of analysts reached out to these companies to find more details about their business models as well as revenue split customer-wise, offering-wise, and geography-wise as these were important KPIs for the customer for selection.

Post a personal dialogue with the sell-side companies’ leadership team, the analyst team found 34 companies that qualified against their requirements. These details were collated discreetly without revealing buy-side details to the interested sell-side companies.

All of these 34 leads were off-market and were not found by the company’s Investment Banker. As a part of the process, the analyst team presented a one-pager blind profile of these 34 companies to the customer for their review and approval. The customer approved all 34 leads, resulting in a  100%  accuracy for this mandate. Then both parties were introduced for advanced discussions. Of these, 5 companies made it to the offers and Letter of Intent stages and finally, one transaction was made from this lot. They chose to do the transaction on their end.

“We couldn’t believe the speed with which they could  send ‘Ready to Transact’ profiles to us for our review and approval. More impressive was the fact that they managed to find off-market leads for us which our Investment Banker couldn’t. Their ability to maintain quality with consistency in their profile recommendation was quite remarkable.

We might not know when we will be doing our next acquisition, but we definitely know who will be our deal-sourcing partner.”

‍