The Middle Market Review Insights on the Middle Market.

Subscribe Subscribe

Subscribe Today

I want to receive:

Thanks for subscribing!

The Winning LOI [Vol.1, Issue 2]


Issue 2 of The Winning LOI reviews M&A business valuation data and key M&A deal terms for a digital design business serving the transportation and manufacturing sectors. The business went to market in Q4 2020 and was generating (TTM) $7 – 7.5M in revenue and $1.25 – 1.5M in EBITDA at the time of the Winning LOI bid.
Consistent with all of our publications, all data presented in issues of The Winning LOI are fully anonymized to protect the confidentiality of Axial members and transactions.
If this was forwarded to you, you can sign up by clicking here; if you have feedback or ideas for how to improve The Winning LOI, please email: [email protected].

The Deal
Deal TypeChange of Control
Revenue Range (2019)$7M - $7.5M
EBITDA Range (2019)$1.25M - $1.5M
EBITDA Margin Range18% - 20%
Key IndustriesTechnology, SaaS
In-Market DateQ4 2020

Axial Deal Data
# of Pursuits*24
Deal Pursuit Rate*10.3%
Total Days in Market415 Days
Winning Pursuit to Deal Closed224 Days

Total Enterprise Value (TEV) Range$5M - $5.5M
EBITDA Multiple Range (2019) 3.75 - 4x
ExclusivityNone outlined
➡️ Cash70% of TEV
➡️ Rollover Equity6.7% of TEV
➡️ Seller Note
➡️ Earnout

Axial Sell-Side Member Data
Member TypeM&A Advisory Firm
Total Deals Marketed on Axial73
Average Annual Deals Marketed13
Average Revenue of Deals$35,541,072
Average EBITDA of Deals$7,217,059

Axial Buyside Member Data
Member TypeHolding Company
Number of Acquisitions6
Buyside Pursuit Rate*50%
Buyer Responsiveness Rate*83%

Disclosure: Data presented in the Winning LOI publication has been anonymized to protect the identity of the interested parties. Data is provided to Axial by Axial members in accordance with the Axial Member Terms of Service. Axial has endeavored to present data accurately, but Axial does not and cannot fully verify the accuracy of the presented information. Information contained in The Winning LOI is for informational purposes only, and does not represent investment advice or recommendations of any kind.


*Buyside Recommendations: Axial sell-side members receive a matching set of buyside members for every deal they manage via Axial. A buyside recommendation refers to a specific buyside Axial member who matches a particular deal.

*Recipient: A recipient is a buyside member who has been granted access by an Axial sell-side member to review a particular deal.

*Pursuit: Axial buyside members express initial interest in a deal by clicking “Pursue”, after which they can access and sign the NDA.

*Revenue Ruling 99-6: Partnership to disregarded entity. This ruling describes the federal income tax consequences if one person purchases all of the ownership interests in a domestic limited liability company (LLC) that is classified as a partnership under section 301.7701–3 of the Procedure and Administration Regulations, causing the LLC’s status as a partnership to terminate under section 708(b)(1)(A) of the Code.

*Deal Pursuit Rate: The deal “Pursuit Rate” is defined as the number of times a particular deal is pursued by unique buyside members (i.e. the buyer shows explicit interest in exploring the deal) divided by the total number of buy-side firms invited to evaluate the deal

*Buyside Pursuit Rate: The buy-side “Pursuit Rate” is defined as the number of deals pursued by a particular buyer throughout an entire Axial membership term, divided by the total number of deals sourced during the same timeframe.

*Buyside Responsiveness Rate: The buyside “Responsiveness Rate” is defined as the rate at which a member responds to teaser shares within 5 days. The calculation initiates when a member has a minimum of 10 teasers and is calculated based on the member’s last 100 teasers received

Learn More About Joining Axial

Request Information

Subscribe to Middle Market Review

Subscribe to Middle Market Review

Subscribe Today

I want to receive:

Thanks for subscribing!