(01)EngagementOverview

Strategic buyer acquires Tequila Sunrise for growth.

Tequila Sunrise is a high-performance E-Commerce email marketing agency specializing in Klaviyo email and SMS campaigns. Founded in 2019, the agency operates globally, with a remote team dedicated to delivering impressive ROI for its clients. The agency’s client base includes over 30 active DTC E-Commerce businesses across industries like consumables, fashion, beauty, and more. Tequila Sunrise has built a robust reputation for maximizing sales and lifetime value by taking a data-driven approach to email and SMS marketing. With 95% of their revenue coming from long-term retainers, Tequila Sunrise is poised for continued success. As the Tequila Sunrise Acquisition moves forward, the agency is primed for its next phase of growth, expanding into new service areas and reaching a broader client base.

The agency focuses on crafting tailored marketing strategies that engage customers through the entire lifecycle, delivering compelling email content and ensuring top-tier performance. By continuously optimizing campaigns and providing strategic consultations with clients, the agency maintains a high level of customer satisfaction and an average 9.6x return on email spend. As a Klaviyo Master Platinum Partner, Tequila Sunrise is an industry leader in email marketing, committed to providing the highest-quality campaigns that consistently outperform industry standards. The founder is seeking a partner who can help scale the agency’s success and expand its service offerings, particularly in paid traffic and SEO.

(Details)

  • Engagement Sell-Side Representation
  • Type Full Sale
  • Category Digital Product & Web Development, Paid Media & Lead Generation, SEO
  • Buyer Type Strategic Acquirer
  • Deal Size Under $5M
  • Services Valuation & Market Positioning, Buyer Targeting & Outreach, Offer & Negotiation Support, Due Diligence Management, Closing & Transition Support

(02)Inside TheEnterprise

Who is Tequila Sunrise?

Tequila Sunrise specializes in using Klaviyo’s platform for email and SMS marketing campaigns that generate high returns for DTC e-commerce clients. Their comprehensive service includes crafting engaging email templates, managing client email automations, analyzing performance, and offering continuous strategy optimization. By focusing solely on email and SMS marketing, they have honed their expertise to become a trusted partner for e-commerce brands seeking to improve customer retention and lifetime value.

The agency has successfully developed a reliable inbound and outbound sales process, where 75% of its new business comes from outbound efforts, including email outreach, Upwork, referrals, and organic sources. Their client base spans consumables, fashion, beauty brands, and more, with retainer packages ranging from $2,000 to $6,000 per month. The agency prides itself on maintaining a lean operation with a global team of 24 employees, ensuring high-quality service for its clients.

(03)Founder'sMotive

The Why Behind The Sale

The founder of Tequila Sunrise is seeking a strategic partner to help scale the business and drive future growth. The agency has reached a stage where it has achieved significant success, and the founder recognizes the potential for further expansion with the right partner. The founder is committed to remaining involved during the transition and ensuring that the agency continues to grow while maintaining its strong culture of data-driven marketing excellence.

(04)Founder’s Vision

Criteria for the Perfect Acquisition Fit

The ideal buyer for Tequila Sunrise is an agency or investment group with experience in digital marketing and email marketing, particularly those with expertise in the e-commerce space. The buyer should have a vision for expanding Tequila Sunrise’s capabilities, especially in areas like paid traffic, CRO optimization, and SEO services. The ideal partner will also be focused on continuing the agency’s culture of high-quality work, ensuring that the team remains motivated and aligned with the company’s mission.

(05)Setting the Stage

Preparing Tequila Sunrise for Acquisition

Merge positioned Tequila Sunrise as a high-margin, highly profitable business with strong growth potential. The agency’s fully retainer-based model was a key selling point, offering predictable and stable revenue. Merge also highlighted Tequila Sunrise’s successful track record as a Klaviyo Master Platinum Partner, its data-driven approach, and its ability to consistently deliver impressive results for clients. These factors made Tequila Sunrise an attractive acquisition target for buyers seeking to invest in a growing agency with a proven business model.

(06)Attracting Suitors

Strategic Marketing of Tequila Sunrise for Acquisition

Merge marketed Tequila Sunrise as an established leader in Klaviyo-driven email and SMS marketing for e-commerce brands. By emphasizing the agency’s strong recurring revenue, impressive ROI metrics, and Klaviyo expertise, Merge attracted multiple interested buyers. The agency’s ability to scale and expand into new service areas, such as SEO and paid traffic, further piqued the interest of potential acquirers.

(07)Sealing the Deal

Perfect Matchmaking with the Ideal Buyer

Tequila Sunrise was successfully acquired by Lilo Social, a buyer that recognized the agency’s potential for further expansion. Lilo Social’s expertise in digital marketing and strong resources were a perfect complement to Tequila Sunrise’s existing operations. Post-acquisition, Lilo Social has already begun investing in expanding the agency’s service offerings, while the founder and team remain engaged to drive continued success.

(08)Unlocking Synergies

Positive Impacts Post-Transaction

Post-acquisition, Tequila Sunrise has successfully leveraged its new resources under Lilo Social to expand its service offerings and increase the scale of its operations. With a focus on growing paid traffic and SEO services, the agency is now positioned to attract new clients and further boost revenue. The acquisition has allowed Tequila Sunrise to tap into new growth opportunities while maintaining the quality and customer satisfaction that have fueled its success.

(09)Finding a New Home

The Merge Difference

Merge played a crucial role in facilitating the successful acquisition of Tequila Sunrise by Lilo Social, providing expert matchmaking and strategic guidance throughout the process. By aligning Tequila Sunrise with the ideal partner, Merge ensured the agency’s continued growth and success post-acquisition. The acquisition underscores Merge’s ability to identify high-potential agencies and connect them with the right partners to foster long-term growth.