The investment bank spearheaded the negotiations and sale of the IP software company to Anaqua, providing unmatched market insight and advocating for Lecorpio’s value and protection at every turn.
Lecorpio made a name for itself through years of consistent innovation, newsworthy fundraising, and an expanding customer base in the IP software space. When it came time to sell, Lecorpio CEO Jay Madsen was prepared to leverage his past as a banker to actively pursue the best deal for his company. He had also spent five-and-a-half years steeped in the legal software industry and was ready to bring that market experience to the table alongside his chosen bank.
But when Marks Baughan pitched Lecorpio’s board, it was clear the firm offered a wealth of industry knowledge — beyond what Madsen had accrued — that would prove critical to Lecorpio’s successful sale.
“I wanted Marks Baughan because their pitch alone educated me immensely about the market. I learned so much about the space I’d been in for five years and thought I knew well,” Madsen said. “It’s a unique industry, and I wanted someone who knew market buyers — perhaps ones I hadn’t considered,” he added.
The board was equally as impressed with Marks Baughan, and selected the firm out of a competitive group of larger banks to take the lead.
Lecorpio’s Value Sets the Tone for the Deale
Marks Baughan ran a broad process for Lecorpio, involving both strategic acquirors such as Anaqua, Questel, and CPA Global as well as private equity firms throughout the U.S. and Europe.
Lecorpio had solid internal resources on hand to support the sale process, but Marks Baughan augmented these resources by providing hands-on assistance for financials, modeling, and analyses.
“Their industry knowledge was incredible,” said Madsen. “We had previously done two rounds of fundraising, so I had two different decks that I thought were pretty good. But when we created a deck with Marks Baughan, it was clear they really knew how to present things so potential acquirors would understand our story and our value.”
“They knew what buyers were looking for and who would be interested,” he added. “The deck made it clear where we fit perfectly.”
Deft Negotiations Drive a Win for Lecorpio
When Anaqua emerged as the buyer, Marks Baughan expertly negotiated on behalf of Lecorpio to enable the company to capture maximum value from the deal while protecting its IP.
“Because Anaqua and Lecorpio were true head-to-head competitors, we needed to protect our software and our IP,” said Madsen. “Marks Baughan protected both the company and me during the entire process in a way I have not heard of anyone else doing. Everything was masked until the end. We didn’t have to show a demo. We didn’t have to share our pipeline. Customer reference calls were reserved for the last day, and they were closed. It was really impressive,” he added.
In the end, Anaqua acquired the company at a significant premium over other bids. Marks Baughan’s positioning of the market opportunity and strategic rationale were essential to achieving favorable terms for Lecorpio. In addition to a compelling closing cash consideration, the firm engineered the terms of an equity stake in Anaqua for Lecorpio’s shareholders. By applying market and valuation knowledge, Marks Baughan negotiated a fair price on Anaqua’s shares that went to those Lecorpio shareholders — who ultimately received substantial upside from the equity returns.
Marks Baughan Serves as Market Intel Mainstay
Selling one’s company is often a high-stress, fraught process for a CEO, but for Madsen, it was “actually fun” with Marks Baughan. “It’s fun to work with them. We were down in the trenches many times, but they are great, steady people who I enjoyed working with,” he said.
While Madsen has since left the legal tech world, he continues to leverage Marks Baughan for market intelligence on the industry. “They have their finger on the pulse of the market,” he noted. “They know what’s going on, what’s changing, who’s doing what, and more.”
“Where other industry-focused banks are playing checkers, Marks Baughan is playing chess,” Madsen added.
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.