Marks Baughan took on the role of CFO to spearhead the IP software company’s sale, capture the right buyer, and deliver the best possible return.
ITIP, an intellectual property (IP) technology company providing innovations in cost management, sensed it might be time to sell. The CEO noticed a number of legal technology companies in the space pursuing acquisition, and he knew he wanted an expert in IP tech M&A on his side when the time came to find a buyer. He also knew that he wanted a buyer who wouldn’t gut the company’s foundations after the sale.
Enter: Marks Baughan, a global investment banking firm specializing in IP and legal technology. ITIP learned of the firm’s transaction history and was impressed by its specific wins in IP tech. Marks Baughan’s experience and deep knowledge of the space assured ITIP they had found their advisor.
CFO-on-Demand, at Your Service
ITIP did not have a CFO or equivalent financial leader, so Marks Baughan took on that role to prepare the company for the sale. The firm “stepped in and helped me by acting as CFO in the months we worked together through the process,” said ITIP’s CEO. “It was very helpful for me. They understood the financials and built a deck that made sense to someone who would be looking for those financials. I did not have somebody that could pull that together to show our growth and demonstrate what we had been doing,” he added.
In addition to translating ITIP’s financial data into buyer-ready material, Marks Baughan educated the company on the sale process — explaining options such as private equity versus corporate strategic investor and preparing the CEO for meetings with potential buyers. “They knew a lot of people in the [IP] industry, so they gave me an idea of who I’d be speaking to, what their personalities were like, and what their backgrounds were,” he noted.
A Surprising Buyer Emerges, Hitting a Home Run With ITIP
In addition to aiming for the best deal possible for ITIP, Marks Baughan knew the company’s CEO wanted to sell to an entity that would preserve the foundation he’d built, so the firm sought a buyer that would meet this need while offering advantageous sale terms for ITIP. Questel emerged as a surprise player — a company Marks Baughan suspected would be interested but may not have had ITIP on its radar.
“I wouldn’t have considered Questel a player, but Marks Baughan knew them, and they ultimately made the acquisition,” said ITIP’s CEO. “Because Marks Baughan is in our space and they know the players, they knew who to talk to,” he added.
“Marks Baughan did right by their client in targeting us as a buyer,” Questel COO Miguel Iglesias said. “We were not an obvious choice. They clearly listened to their client and sought out a buyer who not only had an appetite for the purchase but who would retain what [ITIP] had built after the acquisition. It was smart of them to reach out to us,” he added.
The acquisition was a home run for both companies. Questel’s CEO at the time told the media that ITIP’s “unique software approach to big saving in prosecution costs” was a “perfect fit with our new IAM (Intellectual Asset Management) software solution.” And ITIP’s CEO walked with an excellent return — retaining some equity upside after the transaction.
“The deal was very successful because of Marks Baughan. I would not have gotten the deal I got without them,” said ITIP’s CEO. “They were very responsive, knowledgeable, and professional. There was never a time where I was waiting for something I should have had. They gave me very sound advice,” he added.
ITIP’s CEO has maintained his relationship with Marks Baughan to this day for market insight, intel, and guidance.
Marks Baughan is a global investment banking firm specializing in legal and compliance. We have completed +125 transactions with an aggregate value of +$10 billion. Get in touch with us here.