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The Winning LOI [Vol. 2, Issue 2, No. 5]

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Welcome to Issue #5 of The Winning LOI, the Axial newsletter that reveals the key M&A valuation data and deal attributes of winning LOIs in the world of American Small Business M&A.

Sign up for the Winning LOI here. Have a confidential LOI? email us at: [email protected].


In this issue, we dive into the M&A valuation data and key M&A deal terms for a $7M natural gas measurement business. The deal was confidentially sourced in 2021 via Axial, and the acquirer consummated the transaction in 2022. The business sells its gas measurement products over the counter and also offers related field services to the upstream E&P and related oil & gas markets.

The business went to market via Axial confidentially in Q4 2021. The business reported $7M in revenue and $1M in TTM EBITDA.


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 Verified Closer: An “Axial Verified 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.

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