Choose a Banker You Trust: Swoogo Acquired by Eagle Rock Capital
The outcome of an M&A process is important to a founder, and the process itself has inherent volatility. It can be a challenge to ‘stay steady’ day-in and day-out, but a strong relationship built on trust helps ensure ideal outcomes—and a better experience—for all parties.
THE COMPANY
Swoogo is an event marketing software company based in Los Angeles.
THE GOAL
The three Swoogo co-founders were looking to sell the company to achieve different objectives. CEO and Co-founder Leonora Valvo was ready to retire and the other two co-founders wanted to de-risk (sell some shares) but still stay at Swoogo to continue building the company.
OUR APPROACH
In partnership with the Swoogo founding team, we approached a broad base of prospective acquirers with a strong pitch around Swoogo’s competitive advantage in the event management software space, compelling financial and SaaS metrics, and the value of the team, especially the two remaining co-founders.
When the COVID-19 pandemic hit, the events market was hit hard, but Swoogo managed to not only survive but THRIVE, further proving its value and resilience. We ran a broad process with multiple ups and downs, and eventually connected with Eagle Rock Capital, a search fund backed by investors with a strong, long-term thesis on the events market.
While it was tempting to jump at some of the earlier opportunities, we were willing to wait for the best deal. As a partner, we supported Leonora through the rollercoaster of ups and downs, and developed a working relationship that helped us reach an ideal outcome for the entire founding team.
THE OUTCOME
We closed the deal for a compelling valuation, Leonora moved on to new ventures, and the other two founders remained with the company where they are now incentivized to continue building and growing Swoogo alongside a new CEO.
