Project Cloud
After nearly two decades of providing reliable cloud computing and disaster recovery services, the owners of a successful cloud technology company were ready to retire. To find the right buyer and ensure a seamless transition, they approached the True North Mergers & Acquisitions team. With more companies transitioning to the cloud and a market value expected to reach $323 billion by 2026, the timing couldn’t have been better.
Thanks to a strong reputation, loyal customers, and growing demand for cloud services, we helped the owners find a buyer who recognized the company’s potential and was ready to take it to the next level.
We closed the deal, exceeding the owners’ target price by 30% in under six months. Here’s how we made it happen.
Our team conducted extensive research into the cloud computing space and found:
- More businesses were transitioning to cloud services to maximize efficiency and reduce costs
- Growing demand for Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) solutions
Our client stood out with:
- A comprehensive line of cloud services
- Strong year-over-year growth
- A diverse client base with high retention rates
Our client was clear that they wanted to sell to an incumbent buyer, a private equity group that recognized the company’s industry reputation and growth potential. While focusing on this buyer, we prepared marketing materials to maintain negotiating leverage.
The business owner’s preference was to sell to an incumbent buyer rather than go to market. Our team initiated discussions with this buyer while also preparing the marketing materials necessary to go to market.
Using our QuietAuction™ process, we created negotiating leverage. The interested buyer knew they needed to make a strong offer or risk competing with other buyers.
During the final stages, we carefully managed the due diligence process to protect the agreed price and terms through closing.
While working with a single buyer may appear to be limiting, our innovative QuietAuction™ process proved instrumental in maintaining our client's negotiating power for Project Cloud. By leveraging TNMA's expertise and comprehensive marketing materials, we created a strategic advantage that signaled the owners' readiness to explore alternative options. This approach generated a sense of urgency with the incumbent buyer, effectively preserving our client's leverage throughout the transaction.
In just 169 days, we closed a deal that exceeded the target price by 30%. Beyond the numbers, this transaction ensured our client's legacy would thrive under new ownership. The deal brought together immediate cash value, growth incentives through an earnout, and aligned interests with seller financing—creating a win for everyone involved.
