How Brex signed a $5.15B Deal in ~40 Days

Key takeaways

1. The deal moved fast: a term sheet on Dec 22, signing in early January, and an announcement timed to Capital One's Jan 22 earnings, about 40 days in all.
2. The price was split 50/50 between cash and equity, and Capital One committed about $950M to integration and retention.
3. Brex repriced employee equity to about $4B, down from a $12B peak valuation, to restore upside for employees. The sale came in at about 13.4x gross profit, the top end of fintech public comps.
4. Capital One did deep diligence on risk, unit economics, product and credit, so a buyer's scrutiny of those areas is worth preparing for.
5. Franceschi argues the "exit" mental model is wrong, and that private valuations converge toward public markets.