🌟 Hello, Reader

Welcome back to KSMC Double Klick!

Time to double klick and dive into everything packed inside this Edition five.

Warm regards,
Kapil Sukhija
Founder, KSMC

📊 Deal Strategy Deep Dive

Target Identification: The Netflix Algorithm for M&A

What This Means: Target identification is the systematic process of finding potential acquisition candidates using data-driven methodologies rather than traditional industry-focused approaches. Like Netflix's recommendation algorithm analyzes viewing patterns to suggest content, M&A algorithms analyze business patterns, market behaviors, and performance metrics.

The Challenge: Traditional target screening relies on obvious criteria – same industry, similar size, geographic proximity. This approach can miss valuable opportunities.

Why It Matters: The most successful acquirers use data-driven approaches to identify targets before they're obvious, creating competitive advantages and better valuations.

Real Deal Example: Google's 2006 acquisition of YouTube for $1.65 billion seemed overpriced for a two-year-old startup losing money. But Google's data analytics had identified something others missed – user engagement metrics showed YouTube users spent significantly more time on the platform than on traditional video sites. YouTube's continued explosive growth is evident in 2025: $8.93 billion in Q1 2025 (up 10.3% year-over-year) and $9.8 billion in Q2 2025 (up 13% year-over-year), putting the platform on track for over $37 billion in annual ad revenue for 2025 alone.

Key Insight: Using behavioral data alongside conventional financial metrics to identify target potential.

🌍 Global Pulse

Perplexity AI Makes Stunning $34.5B Bid for Google Chrome Browser

AI search company Perplexity has submitted an unsolicited $34.5 billion offer to purchase Google's Chrome browser, a bold move that comes as Google faces anti-trust pressure following last year's landmark ruling.

The Numbers

• Perplexity's offer: $34.5 billion (nearly double its own $18 billion valuation)

• Chrome's estimated value: At least $50 billion

• Google's market cap: $2.5 trillion

Why Now?: The Department of Justice has proposed forcing Google to sell Chrome as an anti-trust remedy, though Google plans to appeal. Perplexity's bid positions the AI startup to capitalize on regulatory pressure against Big Tech.

The Bigger Picture: Perplexity launched its own browser "Comet" in July, while OpenAI is reportedly developing one too. The three-year-old startup has also bid for TikTok and been courted by Meta and Apple. While Perplexity’s bid is considered a long shot given Google's resistance, it signals intensifying competition for web browser dominance in the AI era.

🤖 AI Tools Spotlight

Professional Video Creation Made Simple: Meet Higgsfield AI

Imagine creating professional-looking videos with dramatic camera movements—without expensive equipment or filmmaking experience. That's what Higgsfield AI delivers.

What the tool does?: Higgsfield transforms text descriptions or images into dynamic video clips with professional camera work. You describe what you want or upload content, and the AI creates videos with sophisticated camera movements.

About Higgsfield Steal: A standout feature that lets you copy any image style instantly. See an image online you love? Just point and click—it captures the outfit, pose, vibe, and style to generate something similar but not identical. No prompts needed, just one-click inspiration that saves hours of manual description.

Who Can Use It?: Content creators, business owners, educators, marketers, and anyone wanting compelling video content.

The Bottom Line: Higgsfield democratizes professional video production. No crew, no gear—just AI-powered camera control that makes high-quality video creation accessible to everyone.

Explore the tool here.

💭 Dealmaker’s Quote

“Given a 10% chance of a 100 times payoff, you should take that bet every time.”

— Jeff Bezos

🏢 About Us

KSMC is a Toronto-based boutique advisory firm founded by Big 4 alumni turned entrepreneur. We provide comprehensive M&A Advisory Services, strategic CFO Consulting, and tailored Accounting Solutions. Our expertise and network spans the complete transaction lifecycle—from financial due diligence (QoE reviews) and business valuations to full sell-side mandates—serving middle-market clients across industries in Canada, U.S., UAE, India, Puerto Rico, and Botswana.

Know more and reach out to us here.

Disclaimer: This newsletter is provided for informational purposes only and does not constitute any form of advice. We do not have any sponsorship, affiliate, or commercial arrangements with any companies, tools, or services mentioned in this newsletter. All examples and case studies are based on publicly available information and are included for educational purposes only.