The company which is active in the OCR (Optical Character Recognition) space, started to explore various options for the next financing steps for the company: the option to find a strategic partner as an investor or to sell the company.
The major issues for the company were exploding costs, and Sales growth had been slowing down by a double-digit number. Given that the majority of voting shares were controlled by a VC, the founders needed to find a convincing and attractive exit plan that would satisfy various stakeholders.
- Determine fair value for the company: given the advanced AI and Core technology, the Fintalent needed to understand and justify a premium to its comps.
- Identify at least 25 core targets as either acquirer or strategic investor, including a strategy on how to approach each of the strategic investors vs. an outright sale.
- Build the value pitch story for the company to engage with the firms.
The management team together with the Fintalents put together an incremental improvement plan that would be financed with debt and equity. The overall goal was to get a strategic investor that can help to increase sales growth and has an active sales/marketing channel available to it. The company was successfully sold for an undisclosed amount.