Case Study

Case Study 7

Situation:

PinPoint GPS, headquartered in Mississauga, Ontario, is a leading Telematics Solutions company, bringing the best-of-breed brands in vehicle tracking, trailer tracking and worker tracking into an integrated offering for mid-sized transportation logistics and fleet operators. Their customer-focused, subscription-based business model boasted a client base with healthy growth, low churn, and a recent movement from smaller fleets to mid-sized and large fleets. A competitor had approached PinPoint’s owners about the possibility of selling, which prompted them, even as a relatively young company, to think seriously about their exit strategy options. They recognized that to ensure the continued momentum and success of the company, seeking a buyer with resources to help PinPoint scale up rapidly was an option worth exploring.

Solution:

Pinpoint’s owners approached Stillwater Capital for assistance in positioning the company and taking it to market. They were persuaded that the likelihood of realizing the company’s best value is improved when additional buyers are brought to the table. After evaluating the company’s sales and costs history, key value drivers and industry trends, the highly experienced Stillwater team helped PinPoint to develop a run-rate based financial model and an adjusted EBITDA that properly presented its performance and attracted the interest of high quality strategic buyers and private equity groups. This analysis also turned out to be of crucial importance later through due diligence and negotiation phases of the transaction. Descartes Systems, the company ultimately chosen as buyer, has the international footprint, brand recognition and resources to take PinPoint GPS to the next level of revenue and profitability.