IT Learning Client

Problem Our Client Had

The owner had previously tried to acquire a company and raise equity capital on his own. Neither deal closed. Management was unable to bring in the equity because the growth rate was slowing. The Company approached us to help them bring in growth capital to regain fast growth. We advised them that the company was too small to raise financing by itself and that they should try to find a company to acquire. The company was missing M&A experience required to secure a deal. They needed a firm that could guide them through pro form a financial and how to value the acquisition target.

Why They Came to Us

They were referred to Attract Capital from an accounting firm. We analyzed how they were positioned and where they wanted to go. We advised them to acquire another company to increase their EBITDA. This would enable them to raise growth capital as a larger company. We offered them a turnkey solution including M&A valuation, structuring and securing of acquisition financing. They were impressed by our intuitive understanding of their position and our breadth of M&A and financing expertise.

How we Helped Them

The client re-engaged with the company that they were unsuccessful in acquiring the prior year. We reviewed the financial of both companies and developed a pro form a model that combined both companies. This model resulted in a significant increase in pro form a EBITDA. The pro form a EBITDA was approximately 4 times our client’s actual EBITDA. The new pro form a level of EBITDA allowed our client to increase their offer for the target, which was more to the seller’s liking. As a result of this, our client expects to have the deal secured shortly. This new acquisition will allow our client to bring in more capital to hire more salespeople to drive increased sales. When the acquisition closes, our client will more than double their revenue and increase their EBITDA fourfold.