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Web Development and SAAS Company

AS-737218

Overview

With 15% market share the Company is the largest full service technology firm that provides creative, internet solutions to the multifamily housing industry in the following areas: website development, content management, dynamic database integration, proprietary industry applications, website hosting and on-line statistical reporting. The revenue model provides a low cost threshold entrance and subscription-based website hosting service along with template application services. Currently, 80% of the company's total revenue comes from recurring subscription services. The Company has enjoyed virtually no turnover in the subscription customers over the past three years.

Strategy

The Company is interested in expanding its market share through 2 or 3 strategic acquisitions. The first identified target represents approximately 10% of market share. The second and third targets combined represent approximately 8-10%. Upon successful execution of their acquisition strategy, the company will have secured 25-30% of market share and increased net margins from 11% to 42% by eliminating redundant expenses. The remaining 70% of the market is serviced by hundreds of mom and pop providers.

The Opportunity

The Company has an L.O.I. in place with the first target acquisition and would like to complete this transaction before mid-June. The firm is also in negotiations with the second target. The Company is seeking $4 million in debt or equity financing to complete these transactions. The Company's ultimate goal is to create significant market value by consolidating the companies, increasing profits and selling the business within 24 months. The Company anticipates revenues to increase by 185% to $10.3 million with 42% in net margins by the time of sale.

Financials

The Company has an impressive financial history of predictable and sustainable revenue and net income.

Key Investment Considerations

  • The Company is the leading technology provider, for subscription based services in the mutifamily industry.
  • High visibility branded products, with patented technology and an outstanding history of reliability.
  • Strong management team recognized as thought leaders. Team, also has strong industry relationships.
  • The recurring revenue model provides a clear and profitable growth path with low risk.

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