Hello friends,
AAM Presents How To Have A Great First Call With A Seller
Source: www.AcquisitionAficionado.com
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Deal Architecting Tip Of The Week
The ASE Fleet's Deal Architecting Tool #25
Options Contract
"What Is an Options Contract?
An options contract is an agreement between two parties to facilitate a potential transaction on an underlying security at a preset price, referred to as the strike price, prior to or on the expiration date."
Source: www.investopedia.com
https://www.investopedia.com/terms/o/optionscontract.asp.
Deal Trophy Of The Week
M&A Script Of The Week
Here are all of our off-market companies for sale and a list of vetted business buyers incase you're looking for a quick close:
https://docs.google.com/document/d/1wU2ZctV_KZnNDPpS_NNpLNp2nhNMLxOn5YbVZIwlyQU/edit?usp=sharing
You ought to bookmark this link; it's a live Rolodex.
And it's best viewed on PC for a clickable table of contents on the left.
Here's ASE's Top Capital Partners - No Ceiling:
https://docs.google.com/document/d/11Tr-1UPG9wQQcLvsTK58HSJMjtoGkNzyXkEPPy5wfuk/edit?usp=sharing
We're selling our video SaaS!
$2.1M Video Delivery B2B SaaS
Summary: This company uses AI and machine learning to deliver a end-to-end video delivery systems. (Basically customers are buying a smart-tailored version of Netflix’s back-end video management & delivery system). The company was launched to cache mobile video only, but the current CEO had a bigger vision and pivoted the company. We are now looking for a strategic buyer to help with the automation, marketing, and overall growth of the company. This company has the potential to be the go-to video specific CDN (cloud delivery network) for all companies and video creators.
Key Financials:
Ask: $2.1M
2022 Numbers:
Sales $755k
COGS $32k
Gross Profit $439k
Net Profit $294k
Multiple 6.8x Net Profit
Asking Price (Owner Financing Available): $2,100,000 at closing we are selling for a low multiple to retain a 30% + equity stake in the company.
Reason For Selling: The company has $700k in debt that can be erased for $350k. And the current management team wants to replace the idle cap table with a more active strategic partner.
USP:
TIME: 15 day out-of-the-box implementation (Web, iOS, Android, Roku, AppleTV, Android TV, Fire, and more).
COST: Stack ownership and low operating costs facilitates aggressive subscription pricing; our patented profiling technology offers smart caching and streaming to decongest mobile networks and minimize operating costs
MONETIZATION: An feature rich, data-driven end-to-end platform serving the full digital ecosystem by increasing revenues for content publishers through common monetization models (subscription, transactional, PPV, ad-based, live streaming). targeted advertising and enhanced mobile user experiences.
Risk Management:
Time to market - the company has to quickly ramp up sales to establish its market share
The normal hurdles that come with scaling a company are the only issue. Scalable.co would be a great option for scaling.
ASE’s Deal Assembly Line
We put a man on the moon 54 years ago!
And luckily for you, closing M&A deals isn't rocket science, and it can be systemized!
ASE has a dedicated professional for each bullet point in our assembly line.
And in all honesty, having your own financial ducks in order is one of the fastest ways to leverage other people's money (OPM).
To that respect, ASE also has The Become Lender-Ready Program and a complimentary Financial Education Platform.
Our Deal Assembly Line is only a tiny part of our Become Your Own Private Equity Firm Consulting Kit.
If you're making more than $500k a year in sales and want to take your business to the moon DM me, and buckle your seat belt for take off!
Now here is some clarification on a few of the points in our infographic.
The Debt Coverage Service Ratio (DSCR) is how many times per month a company's net profit can pay for the debt service used to acquire the company after an M&A transaction is closed.
Integration is the final phase of the M&A lifecycle, where you optimize the company with systems, marketing, and by rallying the troops.
The Entrepreneurial Operating System (EOS) is an operating system for businesses that has proven to get companies higher multiples upon exit over and over.
Profits First is a model that flips the profit equation into Sales - Profit = Expenses.
Hopefully, this post connected some dots for you whether or not you work with us.
And tag us in a social media post if you implement any of this and get results; we love seeing others win!
P.S. We are now offering our automated deal flow as a service!