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The Winning LOI [Vol. 2, Issue 8, No. 11]


This is Issue #11 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 look into the M&A valuation data and key deal terms of a specialized transportation manufacturer. The business specializes in the design and production of mechanical and electrical cable assemblies, controls, and other related products. This business privately went to market via Axial in Q4 of 2020, reporting between $18 – 18.5M in revenue and between $1.75 – 2M in EBITDA (TTM) at the time of the winning LOI bid.

Motor Vehicle Manufacturing Deals on Axial (L12M)

  • 8 M&A transactions have gone to market
  • 7 advisors have represented those deals
  • 88 pursuits generated in total

See below for the anonymized fully-tabulated Winning LOI data set ⬇️

The Deal
Deal TypeChange of Control
Revenue Range (TTM)$18M - $18.5M
EBITDA Range (TTM)$1.75M - $2M
EBITDA Margin Range10% - 12%
Key IndustriesMotor Vehicle Component Manufacturing
In-Market DateQ3 2020

Axial Deal Data
# of Pursuits*36
Deal Pursuit Rate*22.36%
Winning LOI Pursuit to LOI Executed91 Days
Winning LOI Executed to Deal Closed75 Days

Total Enterprise Value Range$11M - 11.5M
EBITDA Multiple Range (TTM) 5.5x - 5.75x
Exclusivity60 Days
➡️ Cash91% of TEV
➡️ Seller Note
➡️ Earnout
Noteworthy elements of the Winning LOICo-Investment: Offer to the seller / management to own up to 10% of the fully diluted ownership of the purchaser going forward through direct investment alongside the sponsor. All equity purchased to be the same class of security issued at the same price per share as offered to other equity investors.

Axial Sell-Side Member Data
Member TypeInvestment Bank
Total Deals Marketed on Axial2
Average Annual Deals Marketed0
Average Revenue of Deals$33,770,000
Average EBITDA of Deals$1,853,000

Axial Buyside Member Data
Member TypeIndependent Sponsor
Number of Acquisitions9
Buyside Pursuit Rate*6.36%
Buyer Responsiveness Rate*88%


*Buyside 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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