The Winning LOI [Vol. 2, Issue 5, No. 8]

Welcome to Issue #8 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.

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In this issue, we unpack the M&A valuation data and key LOI deal terms of a manufacturer of air filters for healthcare, industrial, and automotive OEMs. The company reported 26% YoY revenue growth and 24% increased EBITDA from 2019-2022.

This deal did not close after the signed LOI. The seller elected not to sell the company during the exclusivity period. For additional context and data around 2022 dead deals and broken LOIs, take a look at this recent Axial survey and analysis.

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 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.

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.