An overview of our sell-side M&A services
SaaS M&A Deals: Success Stories
There’s no one-size-fits-all path to a successful SaaS exit.
Some companies grow through investment. Others find the perfect strategic partner. The most successful deals are about strategy, timing, and alignment. In this article, we share examples of SaaS M&A deals that worked, what made them successful, and what others can take away from the process.
Company: iLab Solutions
Deal Type: Acquisition
Why? While Co-Founder Tad Fallows wasn’t building iLab Solutions to sell, he was approached repeatedly with unsolicited offers to acquire the business. iLab had never previously taken any outside capital, but he decided to explore his strategic options.
What worked:
- iLab used an M&A advisor: iLab Solutions worked with SEG to strengthen its position, anticipate buyer concerns, and run a competitive process.
- The founders were patient: SEG told iLab to wait to sell, coaching them to hit key milestones that would materially improve iLab’s valuation.
- iLab operated in a specialized niche: Lab Solutions builds software for research labs at universities and hospitals with a focus on life sciences, diagnostics, and applied chemical markets. “We weren’t operating in a space with massive upside. But SEG knew how to help us position the opportunity, not by overstating it, but by showing credible paths to expansion. Their pattern recognition made a huge difference,” said Tad Fallows, CEO.
Outcome: Agilent Technologies (NYSE: A) acquired iLab Solutions in an all-cash offer for twice the expected valuation. The acquisition included iLab’s technology, intellectual property and product portfolio, as well as employee talent.
Quote: “When we formally kicked off the process, our data was clean, our story was tight, and buyers took notice.” – Tad Fallows, CEO, iLab Solutions
Company: TeamSupport
Deal Type: Investment
Why? After building a SaaS platform for B2B technology support teams for more than a decade, Robert Johnson was ready to explore his strategic options. TeamSupport wanted to accelerate the expansion of its technology, customer success, sales and marketing initiatives.
What worked:
- TeamSupport used an M&A advisor: The company’s first exit failed, so on the second try, it prioritized hiring an advisor. TeamSupport worked with SEG to create a compelling narrative.
- They took steps to prepare for a successful exit: SEG told TeamSupport to strengthen its foundation before selling. “We stayed in touch, kept building, and when we reached the right stage, we hired SEG. That early integrity is why I trusted them,” Johnson said.
- They let SEG manage the process: Johnson was able to stay focused on leading the business.
- SEG told a compelling narrative: SEG told TeamSupport’s story in a way that made buyers lean in and compete.
Outcome: Level Equity, a private equity firm based in New York, invested in TeamSupport, exceeding valuation expectations.
Quote: “They helped us prepare for every conversation, coached me on what to say and what not to say. I walked away with zero regrets and real respect for the team that got me there.” Robert Johnson, Founder, TeamSupport
Company: Activated Insights
Deal Type: Acquisition
Why? Dr. Jacquelyn Kung built Activated Insights with an exit in mind. When she was ready to explore her options, she reached out to SEG to start a process.
What worked:
- Activated Insights used an M&A advisor: Kung had the background to run her own process: a Harvard graduate, former investment banker at Goldman Sachs, McKinsey consultant, and a serial entrepreneur. But when it came time to sell, she hired SEG.
- Activated Insights operated in a niche: Vertical solutions attract premium valuations. Activated Insights is a satisfaction analytics platform in seniors housing.
- Activated Insights was prepared for the process: SEG provided Kung the templates for what potential buyers might look for, especially what would come up in due diligence. “I think it sent a level of confidence to a potential buyer that we could proactively anticipate what their questions were,” Kung said.
Outcome: Enabled by the support of private investment firm Cressey & Company, Home Care Plus acquired Activated Insights. Kung estimates that SEG’s process achieved 66% more than she would have on her own.
Quote: “SEG made my company look better than it had ever looked before.” – Dr. Jacquelyn Kung, Founder, Activated Insights
Company: ClearPathGPS
Deal Type: Acquisition
Why? In 2022, customers and prospects were signaling they wanted a deeper solution from ClearPathGPS. On the business side, the founders were also seeing an increase in inbound interest from potential buyers and investors. They decided to engage with SEG to explore their options.
What worked:
- ClearPathGPS started preparing for an exit years in advance: The founders met SEG about eight years before they ran the M&A process. SEG got to know the business and clearly set expectations for a potential process. “They became much more than just business consultants. They became personal coaches and confidants.”
- ClearPathGPS used an M&A advisor: Wells said companies start in a position of weakness when they try to run an M&A process on their own.
- SEG created competitive tension: “It was evident that our advisors genuinely understood our business, enabling them to craft a compelling narrative. The large pool of interested parties they attracted through their reputation led to healthy competition, ultimately maximizing our exit value,” Wells said.
Outcome: GPS Insight, a fleet management and field services company backed by Accel-KKR, acquired ClearPathGPS. The deal brought together two best-of-breed telematics platforms. Wells said it was the best possible outcome for the business.
Quote: “As an entrepreneur, you’re stepping into one of the most emotionally vulnerable times of your entire career, and having that trusted advisor, having someone there who can actually be there with you, who’s been there and who’s done that, was just a godsend. I couldn’t imagine doing it without (SEG).” – Steve Wells, Founder, ClearPathGPS
