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The Winning LOI [Vol. 1, Issue 3]


Issue 3 of The Winning LOI reviews M&A business valuation data and key M&A deal terms for a construction company based in the southwestern U.S. The business went to market in Q2 2021 and was generating between $22.5 – 23M (TTM)in revenue and between $3.25 – 3.5M 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 anonymized to protect the confidentiality of Axial members and transactions.

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The Deal
Deal TypeChange of Control
Revenue Range (2021)$22.5M - $23M
EBITDA Range (2021)$3.25M - $3.5M
EBITDA Margin Range15% - 18%
Key IndustriesIndustrials, Construction
In-Market DateQ2 2021

Axial Deal Data
# of Pursuits*5
Deal Pursuit Rate*6.85%
Total Days in Market252 Days
Winning Pursuit to Deal Closed251 Days

Total Enterprise Value Range$16M - $16.5M
EBITDA Multiple Range (2021) 3.75x - 4x
Exclusivity104 Days
➡️ Cash76% of TEV
➡️ Seller Note
➡️ Earnout

Axial Sell-Side Member Data
Member TypeM&A Advisory Firm
Total Deals Marketed on Axial40
Average Annual Deals Marketed4
Average Revenue of Deals$11,922,849
Average EBITDA of Deals$1,836,353

Axial Buyside Member Data
Member TypePrivate Equity
Number of Acquisitions5
Buyside Pursuit Rate*21.21%
Buyer Responsiveness Rate*75%

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.

*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

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