Tech company Social Blue wants to become number one in the world when it comes to lead generation. An ambitious plan, for which the business was looking for an equally ambitious partner. Luc Keltjens, senior manager at Marktlink, shares how Social Blue quadrupled its value in just a few years and the entrepreneurs eventually closed the deal of a lifetime.
Back in 2017, I first sat down with the CEO and shareholders of Dutch Social Blue. Their question: how can we accelerate our growth as a fast-growing technology company? The team was willing to give up some in equity to do so. Because: sharing is necessary to multiply. But what is the right time to share shares? And what route to take to the moment of transaction? The business was looking for support in those kinds of questions.
Strategy essential
Together with Social Blue's team, our team formulated a business plan with objectives and a plan of action. After all, a good strategy for the future is very important. It helps to focus on the right action items in the present and near future. With the goal of getting the business ready for sale and ready for an investor that fits the objectives. And thus for an optimal deal.
Four years ago, Social Blue - a Dutch business - only had operations in the Netherlands. More and more requests were coming in from North America, the world's largest market for online lead generation. A place where you really have to be present, if you have international ambitions like Social Blue's. It confronted us with a T-split: immediately look for an investor to grow and establish offices across the border and in North America, or grow ourselves?
Growth spurt under its own steam
The decision was made to put the plan for a sale on hold for a while and embark on a growth spurt on their own. In terms of scale, Social Blue was still a bit too small for the type of international investor we had in mind. From profitability, Social Blue's first new office in North America was soon opened in Toronto. Meanwhile, the counter already stands at ten offices in nine countries worldwide; in the Netherlands, Canada, Australia, Singapore, France, Germany, Sweden, Mexico and the United Kingdom.
Moreover, in early 2020, Social Blue acquired the business Netofex Lead Agency. In this way, the ambitious entrepreneurs showed that they could grow across multiple axes: autonomously and through a buy-and-build strategy. A strong signal for potential investors, was evident from the amount of interest shown. The plan to sell was shelved; the time was ripe to attract a new partner to take Social Blue from phase B to phase C.
This requires more than money. It requires buy-and-build experience and knowledge about integrating businesses. Egeria turned out to be the right party for Social Blue; the independent Dutch investment company has committed itself to Social Blue for a longer period of time with an open fund as of May 2021. Together they set a dot on the horizon and go for value creation for both parties.
Objective leading
Entrepreneurs often think that they can only turn to Marktlink for a merger or acquisition. But sometimes selling a company is not immediately the best option. The objectives of an entrepreneur are leading for us. Because we do many transactions, we know what investors find important. On that basis we guide you strategically to the best deal, for now and the future.
