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INVESTMENT CONTEXT

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

FINANCIAL CRITERIA

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

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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. 

 

DUE DILIGENCE

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.

 

 

FOR INTERMEDIARIES

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:

Deal Sourcing
Acquisitions
Entrepreneurship
Corporate Development
Business Turnaround Strategy
General Business Management

 

EXPERIENCED INVESTORS

CXP's investor group consists of successful business leaders across:

Institutions
Family Offices
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.

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CRITERIA


Company's Role

 

Buyer's Daily Focus

 

Source of Capital

 

Value Creation

 

Time Horizon

 

Seller's Involvement

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.

Other Firms


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

Strategic Buyers


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