Orchestrating a $60M Exit (By Étienne Mérineau)

Meet Étienne Mérineau, General Partner at Telegraph Capital.

Before that, he co-founded Heyday in July 2017, a conversational AI chatbot for e-commerce & retail—automating sales and customer support questions at scale with product catalog and customer service integrations.

Early on, they noticed a shift in how people communicated—text messaging was becoming the norm.

They realized it was only a matter of time before consumers would expect the same convenience in their business interactions.

What Étienne had to say about building Heyday:

“I’m proud of the culture of ownership and grit we built. We were first-time founders in Montreal, with no substantial financial backing, competing in a tough market. Yet, we managed to survive long enough to see our vision come to life. It was a testament to our team's resilience and dedication.”

Planning the Transaction

It all started when Hootsuite expressed interest in exploring a partnership and getting a product demo.

While their exit wasn't planned, the process quickly became intentional. At first, they were still in growth mode, contemplating a Series A round… 

But rapidly, they started getting inbound interest from potential acquirers and decided to pursue both paths simultaneously. 

Even if they didn't end up selling, the competitive process would only help boost their valuation with VCs so it was a "can't lose" situation.

As Étienne put it:

“For us, the exit was all about showing our buyer that 1 + 1 could equal 10. We demonstrated that the synergies between Heyday and our buyer, Hootsuite, were so strong that together, we could help define and own a new emerging category: social commerce”.

How Did They Plan It?

They focused on both internal and external metrics, looking at key B2B SaaS metrics—growth rate, customer acquisition cost, sales cycle, net retention rate, and their customer list, which included blue-chip brands.

Externally, they tracked public and private market valuations, future trend reports, and the CAGR of their industry.

They painted a picture of the future that emphasized their current strengths and turned weaknesses into opportunities.

For example, there were thousands of downloads of their Shopify app. Though they hadn’t fully monetized it, they spun it as a sign of a Product-Led Growth (PLG) strategy.

Instead of being a red flag, it became a vanity metric showcasing potential.

The Negotiation Process

The team knew they needed experts in the M&A space, so they hired advisors including Constantinos Ragas at Fasken, Mathieu L. L'Allier from Stifel, and Ugo Cloutier at CFO+CO as their CFO on demand.

They played the “bad cops” during negotiations, allowing Heyday to maintain a friendly, visionary posture. 

They also negotiated critical aspects like cash consideration, earnouts, and employee salaries, ensuring a favorable outcome.

Once everything was aligned, they signed a Letter of Intent (LOI) about 4-5 months after their initial contact.

3 Strategies They Used to Maximize Their Valuation

1. Keeping Up with Data

One of the most effective ways to drive up a company's valuation is to control the narrative through strategic data management. 

This involves meticulously tracking and analyzing relevant market trends, metrics, and benchmarks. 

The team built a comprehensive spreadsheet that captured valuations and multiples from about 30 companies within their industry.

As Étienne explained:

“The data became our baseline for negotiations. It allowed us to clearly demonstrate our value and negotiate from a position of strength. Additionally, by presenting this data strategically, we created a sense of optionality for buyers, making them feel as though they were one of many interested parties rather than the only game in town”.

This approach strengthened their negotiating position and created an environment where buyers felt compelled to make competitive offers.

2. Raising Funds and Public Relations

The team hired a PR agency in New York to launch a campaign to enhance their perceived market position. 

By announcing their seed funding round, it created the perception of optionality with a longer runway, allowing them to avoid accepting low-ball offers.

This strategic PR move did more than just create a positive public perception—it also put pressure on potential buyers to act quickly. 

By demonstrating multiple avenues for growth and funding, the team created a scenario in which buyers felt they needed to move quickly to secure the deal or risk losing out to another investor or company.

3. Engage with Multiple Buyers

To further elevate the company's valuation, the team actively engaged in discussions with multiple potential buyers.

This strategy of “playing the field” allowed them to gauge different offers and fostered a competitive atmosphere among the interested parties.

By doing so, they created a sense of FOMO (Fear of Missing Out) among the buyers. By leveraging simultaneous conversations, the team created an auction-like environment. 

They hired Mathieu L. L'Allier from Stifel, a banker, right after they received their first LOI to kickstart a more serious and professional process.

Étienne’s Top Advice for Founders Considering Selling Their Business

1. Be Intentional about it From the Get-Go

”Have a number and conditions in mind for it to happen. Great exits are planned ahead of time although the best ones are also opportunistic. You essentially need to be ready to maximize the opportunity when the window opens and have alignment with your team and board ahead of time (ideally!).”

2. Create Alignment with Your Co-Founders and Board Early

“Everybody has a number in mind. M&A should not be discussed once you get an LOI... it should be part of conversations on a yearly or quarterly basis as a way to take the pulse from the market but also the key stakeholders of the company. If you don't have alignment, you don't have a deal and the aftermath of a failed deal can really hinder company morale, especially at the exec level”.

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