Selling the Future: apilayer Acquired by Idera
Hire an expert to optimize results. Through collaboration and dedication to crafting the right story for each unique buyer, we were able to secure a premium outcome in an expedited fashion using competitive tension and process expertise.
“Daniel and his team at PEAK Technology Partners were able to connect us with the right people at the right time in a professional and strategic manner. They acted as a healthy proxy between buyer and seller and successfully kept an overall productive atmosphere even in the toughest of negotiations.”
THE COMPANY
Vienna-based apilayer is used by the world’s most innovative companies to gain efficiency by automating data connectivity using straightforward API interfaces. The apilayer team’s core mission is to rethink how business processes are integrated and to build data-driven tools for developers.
THE GOAL
Co-founders and brothers Julian and Paul Zehetmayr had received inbound inquiries from buyers and had explored a few options, but were frustrated with managing the process of selling apilayer themselves. Having experienced the arduous work of identifying and engaging with qualified buyers, negotiating term sheets, and dealing with material retrades, they knew that working with the right team of bankers would expedite the timeline, increase the certainty of close, and maximize valuation. After thorough consideration, Paul and Julian decided to hire PEAK to professionalize the process.
As serial entrepreneurs, they wanted to sell their business outright and move on to other pursuits. Our challenge was to find an all-cash buyer who would take over apilayer’s technology and operations without the two leaders. There was an added international dynamic with apilayer being based in Austria and the most likely acquirers being in the U.S.
OUR APPROACH
We immediately recognized that the framing and approach would be critical to our success. Rather than explain the business’ historical results, we focused on where the business could go with additional resources—without Paul and Julian at the helm. We emphasized that apilayer’s next owner could push the business forward in specific ways that the Zehetmayrs never could, given their limited time and resources. We wanted to make it clear that the proprietary aspects of apilayer were the technology, business model, and operations, not the founders.
Through a series of practice presentations, we prepared Paul and Julian to frame their story in a way that would excite prospective buyers. We anticipated potential questions and how to respond to them, and by the time we were ready to line up conversations with buyers, the story was seamless.
We had conversations with competitors, customers, and other businesses in and around their space to understand gaps in their current offerings as well as market trends. The insights we gathered helped us to ultimately craft a future sales and marketing plan as well as a product roadmap that highlighted various opportunities for growth.
We formally engaged with nearly 40 parties, mostly strategic buyers who would take on the operations and management of the business. Many parties put forth written bids, representing a 125% spread between the highest and lowest offers. Bids were submitted by parties from the U.S. and the E.U.
After a competitive negotiation process, Idera offered the most attractive bid in terms of price, structure, and business plan. We drove a competitive and expedited process which allowed us to achieve an outcome that thrilled both Paul and Julian.
THE OUTCOME
In the end, apilayer and Idera signed a deal with 100% cash at close with no rollover equity or material contingency payments. The founders were able to step away from apilayer and focus on running their other businesses. Idera shared a lot of apilayer’s vision and strategy around inorganic growth which gave both parties confidence and excitement about the future. From initial engagement to close, our process took less than six months.
