Acquisition Process

We are able to quickly make a first decision about our general interest in an acquisition opportunity. Assuming the information required is provided, we will make an initial decision within 10 days. We aim to close an acquisition within three months after first contact.

For initial valuation and indication of interest

• Corporate website and Information Memorandum (if any)

  • Product or service listing/description, with pricing strategy for each

• Quarterly financial statements for the past 12 quarters, including income statement and current balance sheet

  • Please include additional detail on revenue mix (subscription vs. license vs. maintenance, software vs. services, recurring vs. resold, product line breakdown, etc.)

  • Please include available detail on the composition of COGS

• Customer information

  • Revenue by customer by product/service line for the past 12 quarters (anonymous is fine)

  • Any available detail on recurring revenue churn and/or net economic retention rates, with the underlying data

• Employee roster (names not necessary) with function, geography, tenure, and salary

• Summary of lease obligations, by type (incl. software), showing monthly financial obligation and termination date

Additional items required for final valuation and letter of intent

• Management call with key executives

• Existing management, product and/or sales presentations

• Current year tax return (or previous year if current is not available)

• Listing of deferred revenue detail, specifically calling out any long-term prepaid revenue (i.e. beyond 12-months)

• 3-year recurring revenue retention detail

• Listing of shareholders and ESOP participants

• Listing of any other potential liability not accrued on the balance sheet with termination dates and financial obligation

• Listing of patents (issued or pending), including any granted patent licenses, and trademarks