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The Winning LOI [Vol. 2, Issue 10, No. 13]


This is Issue #13 of The Winning LOI, the Axial newsletter that anonymously reveals small business M&A valuation data and certain key deal terms associated with winning LOIs.

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Sponsorship inquiries: [email protected]

In this issue, we unpack the M&A valuation data and key LOI deal terms of a Technology Services Company. The business reported a revenue range of $10M – $10.5M and an EBITDA range of $1.25M – $1.5M when the deal went to market confidentially via Axial in early 2020. The Winning LOI was executed after 14 days in market and closed 148 days later.

The Deal
Deal TypeChange of Control
Revenue Range (TTM)$10M - $10.5M
EBITDA Range (TTM)$1.25M - $1.5M
EBITDA Margin Range12% - 15%
Key IndustriesTechnology Services
In-Market DateQ2 2020

Axial Deal Data
# of Pursuits*32
Deal Pursuit Rate*19.05%
Winning LOI Pursuit to LOI Executed14 Days
Winning LOI Executed to Deal Closed148 Days

Total Enterprise Value Range$5.5M - $6M
EBITDA Multiple Range4x - 4.5x
Exclusivity75 Days
➡️ Cash100% of TEV
➡️ Seller Note
➡️ Earnout

Axial Sell-Side Member Data
Member TypeM&A Advisory Firm
Total Deals Marketed on Axial104
Average Annual Deals Marketed13
Average Revenue of Deals$11,336,951
Average EBITDA of Deals$1,141,544

Axial Buyside Member Data
Member TypeSearch Fund
Number of Acquisitions1
Buyside Pursuit Rate*9.01%
Buyer Responsiveness Rate*99.13%


*Buyside Recommendation: 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 buyside “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. 

Disclosures: All data presented in The Winning LOI is anonymized to respect and protect the confidentiality of Axial members and their transactions. 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.

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