When our preferred buyer unexpectedly walked away mid-process, it could have been devastating. Instead, it became a testament to the value of working with advisors who persevere through setbacks and find solutions when others might give up.
CURO Compensation was built to solve one of the most complex challenges facing modern organizations: making fair, equitable compensation decisions. Our software provides compensation professionals with the analytical flexibility they need to perform complex statistical analysis, model remediation scenarios, and put pay equity at the forefront of hiring and promotion decisions. Over time, we developed sophisticated capabilities that set us apart in the compensation management space. Our platform enabled employers to maximize their talent investments through data-driven decision making. We had built something valuable, but we recognized that to reach our full potential, we needed the resources and market reach that only a strategic partner could provide.
The compensation management market was evolving rapidly. Companies were increasingly focused on pay equity and transparency, creating significant demand for solutions like ours. However, capitalizing on this opportunity required scale, distribution capabilities, and resources that would be difficult to build independently. We decided to explore a strategic transaction that would allow CURO to expand its impact while providing our team with the support needed to serve a much larger customer base.
From our earliest days, we had raised capital on our own to avoid fees and streamline decision making. When it came time to consider a sale process, running it ourselves was tempting. In hindsight, we are very glad we did not.
First, Venero significantly increased the probability of closing. A truly competitive process meant we had multiple parties engaged through every stage. When our initial bidder walked away, we still had options and ultimately closed with another highly credible buyer under equivalent terms.
Second, that competition drove the price higher. As the process unfolded, the terms of our final offer improved. We secured a transaction with a buyer that felt like the right home for our team and our technology.
And third, having a reputable bank at the table shaped perceptions. Being represented by Venero sent a clear signal that we were serious and well-vetted. Equally important was the rapport we built with Venero’s senior bankers long before the deal began. Their advice on timing and positioning, and their unwavering commitment to getting a deal done, gave us confidence every step of the way.
Company: CURO Compensation
Vertical: HR Tech
CEO: Gerry O'Neill
Transaction Type: Full Sale
Buyer: Payscale (Francisco Partners and Insight Partners portfolio company)
Financial Advisor: Venero Capital Advisors
Venero conducted a thorough competitive process, identifying multiple potential acquirers and generating strong interest in CURO. After initial discussions and preliminary offers, we selected a buyer to enter into exclusivity. The terms were attractive, and the strategic fit seemed strong. Then, midway through due diligence, our preferred buyer walked away. Their decision was unrelated to CURO's performance or prospects, but such situations can be disruptive. When a buyer withdraws after exclusivity, it often signals to the market that something is wrong, making it difficult to reengage other parties.
The Venero team immediately went to work rebuilding momentum. They leveraged the competitive interest they had cultivated earlier and reengaged other potential acquirers. Their approach was both strategic and urgent, recognizing that time was critical to maintaining our negotiating position. And they were able to bring another highly credible buyer back to the table.
What's even more remarkable is that Venero managed to secured terms from the new buyer that were equivalent to what we had originally negotiated. This is not an easy feat. When a deal breaks down and has to be rebuilt, sellers typically face reduced valuations and less favorable conditions. Venero’s success in maintaining our valuation reflected both the strength of CURO’s business and their skill in managing a complex situation.
Our experience reinforced several important lessons about M&A transactions. Firstly, setbacks are possible even in well-structured processes, and having advisors who remain committed through difficulties is essential. Secondly, maintaining relationships with multiple potential acquirers throughout the process provides crucial optionality should the primary negotiations fail.
And most importantly, the right advisors can use their experience to turn potential disaster into success. Venero’s combination of deal expertise, market relationships, and sheer determination enabled us to secure a great outcome despite significant challenges along the way.
Α masterclass in how the right strategic buyer can transform an early-stage company into a premium acquisition target.
When PayAnalytics set out to empower organizations worldwide to close pay gaps and advance equity, securing the right strategic investment became key to scaling our global impact.
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