Why iLab Was Told Not to Sell Yet, and What Happened When It Waited

Building iLab Without an Exit in Mind

{Tad Fallows:} I’m Tad Fallows, co-founder and former CEO of iLab Solutions. We built software for research labs at universities and hospitals. It was a small but important niche, and we never took any outside capital. Eventually, we were acquired by Agilent Technologies, a public company, for more than twice what we’d originally expected, and SEG helped make that happen.

{Tad Fallows:} At first, we weren’t thinking about selling. We just wanted to build something we’d be proud to own. But over time, things changed, buyer interest picked up, and I realized the majority of my net worth was tied up in this one company. That’s when I first reached out to SEG.

Why Tad Was Told Not to Sell Yet

{Tad Fallows:} SEG didn’t rush to take us on as a client. In fact, they told us we shouldn’t sell yet, and they were right. They offered to coach us with no strings attached, helping us hit key milestones that would materially improve our valuation. It was their integrity in those early conversations that really stood out.

Getting the Company Ready Before Going to Market

{Tad Fallows:} SEG knew what was coming long before we did. They helped us get our KPIs in shape, guided us through what due diligence would look like, and gave us a roadmap to prepare. When we formally kicked off the process, our data was clean, our story was tight, and buyers took notice.

Addressing a Market Size Buyers Would Question

{Tad Fallows:} One of the biggest challenges was our market size. 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.

More Than 2X Tad's Valuation Target

{Tad Fallows:} We received more than double the internal valuation target we’d set, and all cash, from a public company. We would not have achieved that without SEG’s guidance, preparation, and process.