Project Remote
Project Remote, a Minnesota-based IT company, had spent nearly two decades growing their business. Since founding the company in 2004, they had become a leading provider for small and mid-sized businesses.
When the company owners approached True North Mergers & Acquisitions, the timing couldn’t have been better. The IT-managed services market was rapidly consolidating. In fact, we had seen over 60 transactions in the first five months of 2024 alone, with private equity firms looking to acquire established companies.
Our team guided Project Remote through a successful transaction, closing at 20% above the owner’s initial target.
This is how the deal transpired.
Our client was attractive to buyers for two key reasons:
First, the IT services market was growing rapidly, with projections showing a 6.2% annual growth to reach $372 billion by 2028. We knew these market conditions, coupled with our client's proven track record of steady revenue and growth, would give both strategic buyers and investment firms the confidence they needed to make competitive offers.
After identifying over 180 qualified prospects, our team was ready to begin the marketing phase.
Through our confidential three-phase QuietAuction™ process, we attracted strong interest from multiple buyers looking to expand their technology services. Our approach generated 12 indications of interest from private-equity-backed strategic acquirers ready to grow existing portfolios.
True North Mergers & Acquisitions researched industry trends and analyzed market activity to identify over 180 qualified potential buyers.
We highlighted our client's steady revenue stream and consistent growth, positioning them as an attractive acquisition target. Our confidential three-phase QuietAuction™ process generated strong interest from multiple buyers, ultimately driving the final offer 20% above our target price.
Typically, the due diligence period of the average lower middle market transaction takes 60 days. However, by focusing on buyers with industry experience—those who recognized our client’s true value—we were able to expedite the closing process while driving up the target price.
After management meetings with the top candidates, we received nine formal letters of intent. The True North Mergers & Acquisitions team then negotiated with three finalists to refine their offers.
The True North Mergers & Acquisitions didn’t just close the deal with a winning bid 20% above the target price; they also secured:
- A significant upfront cash payment
- Employment agreements to retain the existing team
- A clear path for growth into new markets with opportunities to add additional services
Just as important, we secured a buyer committed to upholding our client’s company culture and vision.
