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The Winning LOI [Vol. 2, Issue 22, No. 25]


Welcome to the 25th issue 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.

Sign up to receive The Winning LOI newsletter here.

In this issue, we look at the M&A valuation data and key LOI deal terms for a healthcare retail company. The company reported a TTM revenue range of $13M – $13.5M and an EBITDA range of $2M – $2.5M when the deal confidentially went to market via Axial in Q1 2020. The deal spent 257 days in market before the Winning LOI was executed and successfully closed 98 days later.

The Winning LOI eBook | Vol. 1, No. 1-25

To assemble this eBook, we compiled the first 25 Winning LOIs and included summary breakdowns of key data points. To download, please enter your email below.

See below for Winning LOI #25’s anonymized data ⬇️

The Deal
Deal TypeChange of Control
Revenue Range (TTM)$13M - $13.5M
EBITDA Range (TTM)$2M - $2.5M
EBITDA Margin Range17% - 20%
Key IndustriesHealthcare
In-Market DateQ1 2020

Axial Deal Data
# of Pursuits*42
Deal Pursuit Rate*31.82%
Winning LOI Pursuit to LOI Executed257 Days
Winning LOI Executed to Deal Closed98 Days

Total Enterprise Value (TEV) Range$14M - $14.5M
EBITDA Multiple Range (2019) 5.5x - 5.75x
Exclusivity120 Days
➡️ Cash86% of TEV
➡️ Rollover Equity14% of TEV
➡️ Seller Note
➡️ Earnout
Noteworthy Elements of the LOIEmployees: Employee retention will be decided by a mutual agreement between the Buyer and Seller

Axial Sell-Side Member Data
Member TypeInvestment Bank
Total Deals Marketed on Axial37
Average Annual Deals Marketed3
Average Revenue of Deals$12,587,772
Average EBITDA of Deals$1,674,582

Axial Buyside Member Data
Member TypeIndependent Sponsor
Number of Acquisitions4
Buyside Pursuit Rate*8.45%
Buyer Responsiveness Rate*22.67%


*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.

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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