Broad Sound Equity
Investing Capital
Broad Sound Equity is a lower middle market firm focused on primary and co-investment in businesses that can benefit from the technology focused operational DNA of the partners. We are active in all investments. Our focus is on businesses with under $100m in revenue and $10m in EBITDA.
Industries Served
Our focus is on industries where technology is a critical component to competitive differentiation.
Stages of Growth
We have experience investing and managing companies at many different stages, and have the flexibility to invest in various structures.
Case Studies
European MedTech Take Private
Buyout
We drove the acquisition and take-private of an eastern European MedTech business in combination with the acquisition of the associated United States distributor. Enhanced ERP and financial systems were implemented. The business then experienced rapid growth due to expansion of international distribution agreements and industry leading technology. Revenue and profitability grew at a compound annual growth rate (CAGR) of over 25% with distribution in over 60 countries. We served on the Board of Directors during investment period. The business saw a successful exit after a 3½ year holding period.
US Based SaaS Enabled
Expense Management
Growth Equity / Seed Equity
A proven team of software professionals sought to create a new business focused around a new SaaS enabled expense management platform. We provided capital at various stages from seed (pre-revenue) through the last institutional round. In addition to the capital, we advised the CEO on management buildout and capital strategies. Non-dilutive bank financing was secured to support growth. The company experienced CAGR of over 40% supporting a successful exit at a valuation exceeding $100 million. We served on the Board of Directors leading up to the exit.
Food Tech Platform
Seed Equity
We led a direct investment in a company that built a software platform to digitize the supply chain for grocers and restaurants to easily obtain locally sourced foods.
Life Sciences Lab Tech
Seed Equity
We led a direct venture investment in a life sciences software company supporting laboratory operations created by a team of industry veterans. The company is undergoing rapid growth due to support from the academic, CRO and pharmaceutical industry.
Canadian Carveout
Corporate Carveout / Buyout
We helped a Canadian public company carve out three non core divisions, including one that was unprofitable. Immediately post close, the two profitable divisions were stabilized to support a restructuring of the largest, but unprofitable, division. A restructuring was completed in 24 months, including the upgrading of all critical IT systems for compliance and to enhance core customer offerings. The two smaller divisions were sold to strategic buyers. The previously unprofitable business grew at a compound annual growth rate (CAGR) of 20% while achieving meaningful profitability for the first time. The business later exited on a healthy EBITDA multiple having grown revenue 4x since acquisition. We served on the Board of Directors.
US SaaS Software Acquisition
Distressed Debt / Buyout
We identified a SaaS B2B software business with a floundering next generation application and large base of legacy customers. After acquiring the fulcrum security from the debt holders, we used the cashflow generated by the legacy customers to restructure the European based development team and US based product management team and complete the next generation applications. The new platform was rebuilt and released to customers and distribution partners. Customer acquisition costs (CAC) and lifetime value (LTV) metrics validated customer acceptance and led to a significant return on investment (ROI). Growth capital was secured to drive revenue higher and CAGR reached 45% over the 2.5 years from release. We maintained a seat on the Board of Directors.
US Logistics and Distribution Business
Take Private
We led the complete take private of a public special purpose acquisition company (SPAC) that had grown from 1 to 4 diverse business units. After acquisition, we closed 3 unprofitable business units and focused “back to core” on the remaining division. The core operating platform was stabilized and we subsequently acquired the two leading regional competitors. The company recognized a successful exit to a larger strategic player who was interested in acquiring the capabilities and customers of the business. We served on the Board of Directors.
These case studies include transactions that our partners were involved in prior to Broad Sound Partners.