Industry: Technology / Software & Services
Transaction: Sale to Strategic Buyer


CAD Potential, Inc. ("Cadpo"), founded in 1988, provides products and services to train engineers in the MCAD/PLM industry. The privately held company's two owner / operators had grown the company to the point where they were interested in diversifying their assets through a liquidity event. They also wanted access to a larger company's distribution channel to continue expanding Cadpo's products and services. GMB Business Advisors was retained as Cadpo's exclusive financial advisor to sell the company.

GMB Business Advisors conducted a competitive auction process targeting strategic acquirers and successfully negotiated the sale of Cadpo to INCAT International plc (LSE: ICN), a London-based provider of software solutions to automotive, aerospace and industrial manufacturers. INCAT was actively seeking acquisitions to grow market share in the MCAD/PLM engineering training market. The transaction enabled Cadpo to maintain its brand and quality of service while leveraging the synergies associated with being part of a larger, publicly traded international operation.

During the course of the negotiations, GMB Business Advisors successfully overcame challenges, including the creation of value from a fledgling subsidiary, which otherwise may have caused goodwill impairment; overcoming non-GAAP accounting procedures, enabling Cadpo's sale to a public company requiring GAAP-compliant accounting; facilitating an earn-out for the sellers for up to 49% in additional cash proceeds based on future performance; and mitigating product concentration concerns via an addendum to the third-party agreement.

Go Back