Results

Venture-backed semiconductor design automation software company

Problem

Company needed to be sold to one of two industry giants in the electronic design automation sector. The company had little leverage in the negotiations because the potential acquirer knew they were “the only show in town.”  The company’s Board was beset with fractured agendas and the CEO was unable to negotiate a deal that would satisfy all parties. The deal was in danger of going away.

Solution

We worked closely with the CEO to get a base-line understanding of the state of discussions with the potential acquirer, the needs of all constituent groups: the acquirer, management and employees, and individual Board members. We then worked with specific Board members to establish their individual hot buttons and bottom-line positions. We helped the CEO devise a unique deal structure with different payout patterns for different parties, which helped to satisfy everyone’s needs.

Results

We successfully persuaded the VCs and other Board members to accept the terms thus negotiated. The deal was concluded within one month of our engagement, and the company was sold for 100x revenues. The structure satisfied the needs of all parties and enabled a timely exit before the acquirer decided to develop their own technologies in lieu of acquisition.

 

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