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Enabled an Acquisition of a High-Tech IoT Startup for a Mid-Sized IT Company

Client Profile

A mid-sized Bengaluru-based IT services firm with over 800 employees, focused on enterprise software and custom application development. They aimed to acquire a Chennai-based IoT startup with 27 team members and a niche middleware product for logistics and energy businesses. The goal was to enhance their IoT portfolio through inorganic growth.

Business Need

The client wanted to acquire the IoT startup to fast-track entry into industrial IoT integration. They lacked an in-house M&A team, had never navigated such transactions, and needed end-to-end support to find the right fit, conduct due diligence, and ensure post-deal cultural alignment without slowing either company’s momentum.

Challenges

Emotional resistance from startup founders on giving up control
Misalignment on company valuation and equity-swap terms
Zero documentation or clean financial trail from the target firm
Cultural differences between agile startup and process-heavy acquirer
Absence of internal team to manage legal, tax, or HR integration

Solution by PBS

Panthak stepped in as the client’s dedicated M&A partner. We:

Conducted silent background checks and strategic fitment analysis
Designed a valuation model tied to real-world usage and future potential
Mediated between both founders to set post-acquisition leadership clarity
Created a legal and financial checklist with third-party experts onboarded
Structured a phased integration plan with clear internal and external communication workflows

Approach

  1. Defined strategic goals and ideal acquisition criteria
  2. Shortlisted and evaluated three high-potential IoT companies
  3. Initiated outreach and facilitated term sheet alignment
  4. Managed due diligence with expert partners for IP, tax, and HR
  5. Developed post-deal operating plan for unified delivery
  6. Supervised cultural onboarding and brand alignment between teams

Technology/Tools Used

Excel-based valuation and equity models
Google Drive-based secure deal room
Trello for real-time progress tracking
Notion playbook for internal integration
CA and Legal advisory networks curated by Panthak

Business Impact

Projected revenue increase within the first year of integration
Employee retention from the acquired startup after 6 months
Growth in IoT project wins post-acquisition
-Month faster GTM for new product bundles
Investor pushback, thanks to legal and financial transparency

Planning an Acquisition Without an M&A Playbook?

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