Case Study | Sale of Beacon Mobile

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Objective, Investment Banking & Valuation (“Objective”), an award-winning middle market investment banking and valuation firm, is pleased to announce that it served as the exclusive sell-side advisor to Beacon Mobile LLC, a mobile software solutions provider in the car wash industry, in its sale to DRB®, a leading provider of software and hardware innovations to the car wash industry.

DRB® is an operating company of Vontier Corporation (NYSE: VNT), a global industrial technology company focused on smarter transportation and mobility. The acquisition provides DRB® customers with a cloud-based solution to manage their car wash memberships, and allows Beacon Mobile to leverage the more robust resources of a large public company to continue to innovate the Beacon Mobile platform.

Beacon Mobile is a leading Software as a Service (SaaS) native mobile app platform for the car wash industry, and its solutions have helped car wash operators around the world to drive more revenue into their businesses through their growing collection of app-based sales and marketing features. By delivering a fully branded iOS and Android app to a car wash operator that is packed with features designed to enhance the customer journey, Beacon Mobile has unlocked tremendous value for these businesses and enabled them to interact with their customers in new and novel ways. Additionally, the company has been laying the foundation for future technologies that will further disrupt the car wash industry in terms of in-vehicle software. Their services offerings include a large portfolio of innovative customer-facing solutions such as branded car wash mobile apps, VoiceWash, SmartWashClub, and the Facebook Messenger Wash Bot.

Case Study Details

    Business Overview & Owner Objectives

    • Beacon Mobile is a leading provider of software solutions for the car wash industry.

    • Beacon received unsolicited acquisition interest from a large public company with whom they had a technology integration partnership, Vontier Corporation (NYSE: VNT).

    • Ownership wanted to explore this opportunity and maximize the outcome of a potential sale.

    Process

    • Objective developed a compelling acquirer-specific business case and post-acquisition economics financial model outlining the market advantages and incremental profit that may result from the acquisition.

    • Objective negotiated with the strategic acquirer leveraging post-acquisition economics rationale achieving a premium valuation and highly favorable acquisition terms.

    Challenges

    • Beacon Mobile’s technology represented significant benefit for Vontier/DRB. However, while Beacon’s revenue was growing quickly and its technology rapidly becoming an industry best practice, the application of a standard SaaS valuation multiple would not recognize Beacon’s full value and would not have resulted in a purchase price that achieved Ownership’s objectives.

    • By collaborating with Vontier/DRB to develop a more detailed characterization and quantification of the competitive advantages and incremental profit achievable by acquiring Beacon, we provided Vontier/DRB with logical rationale for why they should pay a premium purchase price.

    Results

    • Ownership achieved significant liquidity and assumed an exciting leadership role with DRB Systems, Vontier’s industry leading software and hardware division.

    • Beacon’s innovative technology was proliferated within DRB’s software platforms and DRB allocated additional engineering and marketing resources to extend Beacon’s solutions.

    Read the full press release

     

    If you would like to discuss your own transaction goals contact the Managing Directors from our Technology Practice, or reach out at (800) 849-7010 or [email protected] to be directed to the appropriate team member.

    Disclosure

    The above testimonials may not be representative of the experience of other customers and past performance is not a guarantee of future performance or success.

    This news release is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Securities and investment banking services are offered through BA Securities, LLC Member FINRA, SIPC. Principals of Objective Capital are Registered Representatives of BA Securities. Objective Capital Partners and BA Securities are separate and unaffiliated entities.

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