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Description

OFF-MARKET’Q3 2021

Canadian Managed Service Provider (MSP) Seeks Supportive Majority/Growth Capital Partner

Canada [CONFIDENTIAL]

Asking Price:

Competitive Auction Format

Cash Flow:

$3MM+

Gross Revenue:

$14.51MM+

Business Description

We’re representing a Canadian MSP that wants to continue their hockey stick growth over the past two years via their dedicated buy and build acquisition paradigm in order to drive an exit for 9 figures plus in 3 years or less.

Dynamic management team seeks a supportive financial sponsor to take majority ownership now, provide sufficient growth capital for future bolt-on acquisitions to the platform, and provide other strategic and board-level advisory as applicable to that Buyer’s team (not required).

Target IRR is 50% and seeking a 3.0x MOIC Target based on internal pro forma models.

Current financial breakdown is 50%+ Recurring Revenue – $9.5MM ARR / split as 32% fixed MSP contracts, 22% hardware sales, 19% Managed hosting and telecom, 15% software subscription, and 12% project work.

Full deal sourcing & deal evaluation team leads, comprehensive due diligence & QofE advisors and legal team are all in place ready for accelerated deal flow and to perpetuate their highly optimized and efficient transaction closing processes.

NDA is required for comprehensive Confidential Information Memorandum (CIM) on file with ProNova Partners.

Detailed Information

Facilities:

Multi-location distributed workforce in Canada after the first round of acquisitions are
either closed or in transit to close by end of March.

Competition:

Very fragmented marketplace in Canada.

Growth & Expansion:

That’s the whole deal with this deal, grow by acquisition and flip it at a handsome multiple at the end. The team has a propriety deal pipeline allowing them to reach $12M+ EBITDA over next 2-3 years with the right equity partner.

Financing:

If the price and deal structure {and valuation parameters} are on point we’re open to creative scenarios so long as it includes a significant tranche in cash at close as a requirement to be a viable bid.

Support & Training:

Long term transition – management wants to keep a meaningful minority position in the company to ensure a healthy bite of the apple in the next exit.

Contact info

Pronova Partners

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