Before Entertaining 12 PE Offers, Here's What We Wish We'd Known

Meet the Founder of Core Sound Imaging

{Laurie Smith:} Hi, I’m Laurie Smith. This is Mark Smith. We co-founded Core Sound Imaging in 2007. In 2024, we took on a growth equity partner, PSG Equity, and we did so with the help of SEG.

We Had 12 Offers. Here's What We Learned

{Mark Smith:} We went from 12 to four firms that we were talking to seriously. We got two LOIs (letters of intent) on our own, but we really didn’t know how to evaluate them in terms of: Was it market? Was it reasonable or unreasonable? What were the terms? So that was the point that really made me decide we really needed to get SEG involved to help us evaluate these LOIs.

I think if we had to do it all over again, we would’ve started a little earlier with SEG, maybe a year or two to lay out a roadmap of what we needed to do to get ready.

How We Found an Investor Who Valued Our People and Mission

{Laurie Smith:} Someone very recently used the term “Sherpa.” I would say that really describes how the process was with Software Equity Group. You felt like someone with expertise was guiding you and anticipating everything on the next turn.

{Mark Smith:} SEG not only set the ropes and ladders, but they were also there with us, working. That’s why I was surprised by how much work SEG put in, not just laying out the process but participating in it and getting the work product done that we needed to move the process forward.

What Happened When We Ran a Real Process

{Laurie Smith:} It was overwhelming, really, to me, how much you felt that the team was working. They weren’t just trying to find a buyer or communicate about your business. To Mark’s point, we had, of course, information we had to provide to them, but then it felt like our portion of the work, which was significant to me, was 25% of the work that was done. They took the information and then worked much harder with it to get us where we needed to go. So even though you were, it was a lot. It’s a lot to do and a lot of information to gather, and they were both encouraging, supportive, and very willing to do whatever work was needed to help get to the finish line.

A Process That Paid for Itself Many Times Over

{Mark Smith:} SEG provided not only a broader audience during the process but also a return on the investment for their fee that was many fold what we would’ve been able to do if we had just run the process ourselves.

To Any CEO Getting PE Offers: Hear This First

{Mark Smith:} I would say to any founder: Get an advisor. In my opinion, being able to determine whether the LOI and the terms in it are reasonable, at market, and negotiable is well worth the fee to get an advisor.