The Winning LOI [Vol. 2, Issue 11, No. 14]

This is Issue #14 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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In this issue, we dive into the M&A valuation data and key LOI deal terms of an established Marketing Services Provider. The company provides print, signage, apparel and related graphic products and services.

The business reported $10.625M in revenue and $1.563M in EBITDA in 2021 and went to market confidentially via Axial in Q2 of 2022. The exclusivity term was 90 days, with the deal ultimately closing 80 days after the winning LOI was executed.

Below is a breakdown of Marketing Services M&A activity on Axial over the last 12 months.

Looking to exit in Marketing Services? Meet vetted advisors who can help.

See below for Winning LOI #14’s anonymized data ⬇️

Definitions: 

*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.

*Axial Closer: An “Axial Closer” is defined as any buyside or sell-side member firm who has a verified closed deal that was both marketed and sourced via Axial.

*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.

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.