Acquisitions
We're building a portfolio of companies. We've acquired seven companies in the past three years. We've also founded many more from scratch in the same timeframe. We're always looking for new acquisitions!
While we will consider all opportunities, here are our ideal guidelines:
Any company we look at should be profitable. Break-even companies are also strongly considered. But if you are losing money, why would we pay you to take over your losses? (Yes, we know there could be exceptions to this logic! We're always willing to listen.)
Scalable. Can the business be grown with the proper marketing budget behind it?
Our ideal acquisition is an eCommerce company. It's okay if you must carry an inventory and ship physical goods. We have almost 100,000 sf of warehouse at our disposal.
We also consider more traditional businesses such as manufacturing or retail if the price is right and we think we can boost your sales through the Internet or by using our marketing expertise.
We will consider companies that have existing management who desire to stay. Likewise, we have a management team that can take over should the current management choose not to continue post-acquisition.
Realistic valuations only, please! We can consider most any size deal. But we do this to build equity and cashflow. For us to acquire a company, the business must pay for itself in a reasonable period of time. If we are able to accelerate growth, then we win. If not, we at least know the investment will pay for itself over time.
Joint Venture. Bring your ideas to us! We may be able to help you scale your business through our relationships and techniques while still affording you the benefits of ownership.
No deal too small! Some of our favorite acquisitions are smaller companies making small profits. We love these opportunities because we know how to grow these types of businesses.
Few deals too big. We have our limits, of course. But we have deep pockets ... and friends with deep pockets. If all else fails, we also know bankers.