Motivated seller seeking liquidity and management transition
Desire to ensure long-term continuity of business
Owner seeking exit for non-business related reasons (e.g., retirement or serial entrepreneur seeking next venture) or willing to sell a controlling stake in the interest of partnering with a group that best positions the company for its next stage of growth
Revenue: $5 - $50 million
Contractually recurring revenue and / or high customer retention
EBITDA Range: $1 to $7 million
Greater than 10% EBITDA margins
History of reliable, stable, positive cash flow generation
Relatively "asset-light" business model with limited capital intensity
COMPANY SPECIFIC CRITERIA
Well-positioned in a growing vertical market segment
Clearly identifiable competitive advantage protected by barriers to entry
Favorable market position with multiple avenues for organic revenue growth
Limited customer concentration
Greater than 80% of revenue is recurring and ideally delivered from a central co-lo or public cloud
Opportunity to create value via horizontal and / or vertical integration initiatives
Clear potential for organic growth
Scalability / operating leverage
Headquartered in any country, however the Americas are preferred
Our financial, operational, and entrepreneurial background allows us to quickly evaluate new investment opportunities. In addition, our direct experience in M&A and acquisition integration, and access to substantial capital resources enables quick and professional consummation of transactions.
AS AN EFFICIENT TRANSACTION PARTNER
Cloud X Partners strives for a quick and efficient process to reduce the stress on owners and employees of the organization involved. A typical transaction process with CXP will have the following stages:
INTRODUCTION TO THE COMPANY
An initial call during which high-level information on the target company will be presented by the seller / intermediary to Cloud X Partners. CXP welcomes a written summary of the target company for this stage.
DETAILED INFORMATION EXCHANGE
After the introductory call and receiving executive summary, Cloud X Partners will communicate its interest in the target business in 1-2 business days. At this stage, CXP will seek detailed operational and financial information on the business.
LETTER OF INTENT
Post-review of the detailed operational and financial information a Letter Of Intent will be provided which would set forth the major terms for investment, along with any contingencies including key employees, financing, legal matters, taxes, etc.
Post-LOI, Cloud X Partners will initiate detailed due-diligence on the company. This will include site visits, interviews with key employees, customers and suppliers, financial, IP, legal, and tax review. Post satisfactory completion of due-diligence, Cloud X Partners will present a definitive purchase agreement.
Cloud X Partners understands and appreciates the important role that business intermediaries play in the private company marketplace. We believe that you will find several compelling reasons to partner with CXP in order to meet the unique objectives of your clients.
ATTRACTIVE FINDER FEES
We are always seeking to expand our relationships with business intermediaries or industry experts. As a way to compensate you for your efforts we offer attractive buy-side finders’ fees.
ACCELERATED CLOSING PROCESS AND TIMELY TRANSACTIONS
Our extensive deal experience allows us to rapidly evaluate new investment opportunities. In addition, access to substantial capital resources enables quick and professional consummation of transactions. We strive to close transactions in a timely manner to reduce the stress on the owners and the employees of the organizations involved.
SEASONED MANAGEMENT TEAM
Cloud X Partners has combined experience in all aspects of company operations. We have senior executive-level management experience, a strong track record of growing and improving company operations, and rich experience in M&A and acquisition integration.
CXP has a deep understanding of the M&A and Investment process and would be ideal business partners for intermediaries as our team has key direct experience in:
Business Turnaround Strategy
General Business Management
CXP's investor group consists of successful business leaders across:
HNW Individuals (Entrepreneurs, Operating Executives and Private Investors)
Our strong and reputable investor team provides Cloud X Partners an unparalleled ability to finance investments, as well as provide capital for ongoing business needs.
Buyer's Daily Focus
Source of Capital
Cloud X Partners
Our only investment to which we will dedicate 100% of our time and resources
Leveraging the strength of the business acquired to use as a platform for growth as the company evolves into its next stage of growth
Cohesive group of entrepreneurial-minded investors with relevant bandwidth and expertise to support the business' ongoing growth
Revenue growth, streamlining of operations, and best practices in long-term sustainability
Long-term with no pre-determined time horizon
Flexible - Complete exit or ongoing participation. We will also tailor the transaction to accommodate estate planning, tax, and family needs.
One of many portfolio companies
Finding and executing other deals
Pension funds, insurance companies, endowments, and disengaged individuals
Financial engineering, cost-cutting, high-level strategy
Typically 3-7 years depending on fund timing
Typically require 2-3 year commitment
Subsidiary or division of larger entity retrofitted to fit the parent company's agenda
Driving financial performance of corporate parent
Diverse base of public and / or private investors
Synergies with parent business, cost-cutting
Uncertain: subject to ongoing fit with parent company's strategy
Varies, often with significantly diminished participation in future levels of success