Strategic Exit for a Digital Engineering Firm; Equity- complete exit- ~$12 Mn

About the Company
A Bengaluru-based digital engineering firm, specializing in product development and digital transformation services. The company served clients across various industries, including Hi-Tech, automotive, healthcare, and industrial sectors. With a strong presence in both the US and Indian markets, the firm had demonstrated consistent growth.

Client Objective
The founders aimed for a complete equity exit to capitalize on the company's growth and to align with a strategic partner that could further scale the business. They sought a transaction that would reflect the firm's value and ensure continuity for its clients and employees.

Challenges Faced
1. Market Positioning: Operating in a competitive digital engineering landscape, the company needed to clearly articulate its unique value proposition to potential acquirers.
2. Valuation Justification: Demonstrating the firm's worth in the absence of direct comparables in the niche digital engineering space.
3. Cross-Border Considerations: Managing the complexities of a transaction involving stakeholders and operations across different geographies.
4. Stakeholder Alignment: Ensuring that the interests of the founders, employees, and clients were aligned throughout the transaction process.

Xpertiz Value Enablement

1. Strategic Positioning & Storytelling:
Crafted a compelling narrative positioning the firm as a next-generation digital engineering partner with deep domain expertise and a track record of delivering innovative solutions across multiple industries.
2. Financial Benchmarking & Valuation Support:
Conducted a thorough analysis of industry benchmarks to highlight the company's strong performance metrics, including revenue growth, client retention, and project delivery excellence, thereby supporting a premium valuation.
3. Targeted Buyer Outreach:
Identified and engaged with strategic acquirers whose growth strategies aligned with the firm's capabilities, leading to multiple expressions of interest and competitive tension in the bidding process.
Diligence & Deal ExecutionSet up a secure virtual data room and led all aspects of diligence, negotiations, and deal structuring — including IP rights and valuation terms.