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Description

OFF-MARKET ‘Q1 2022

West Coast Managed Service Provider (MSP) / VoIP Technology Company

West of the Mississippi

Seller Financing Available

Asking Price: $Competitive Auction Format – Depends on Structure!!

Gross Income: $13.5MM+

Cash Flow: $4MM+

Business Description

ProNova Partners represents a compelling West Coast Technology Company, a true Managed Service Provider (MSP), hyper-focused on recurring revenue streams from managed services and telecommunications offerings for a diverse set of business clients.

Top line revenue in excess of $11MM per year with $3.3MM+ in TTM (Trailing Twelve Month) Adjusted EBITDA.

With a roster of excellent, vested clientele the Company has grown organically and through several successful acquisitions for nearly 25 years. The Company offers a broad range of IT, Cloud & telecommunication services through a large team of A-player engineers, providing VoIP, hosting, disaster recovery, cloud services, systems monitoring and maintenance, and special projects as needed.

The Seller is seeking a supportive capital growth partner to execute on a dedicated strategic acquisition plan with a targeted $150-$250MM exit within 3-5 years.

Operationally the Company can integrate 4-8 new acquisitions annually depending on size and the scope of services overlap, with contribution margins in some cases from prior closed deals exceeding 75%+.

A savvy, supportive capital partner will be able to team up with the Company and the sole-shareholder CEO who will spearhead this rapid expansion.

We are looking for a minority or majority stakeholder who will be willing to infuse an initial round of capital in the amount of $30MM-$40MM in an initial tranche. Part of those proceeds could be paid to the CEO personally, and part of the proceeds could be earmarked for acquisitions, depending on specifics to be discussed later. From the outset if future tranches are required we would prefer that additional capital be available should deal flow merit the investment. Those rounds would dilute the CEO at higher valuations based on the escalating TTM (trailing twelve month) adjusted EBITDA of the Company at the time of those secondary/tertiary/etc….funding requests are made. The Seller would require a put-option such that the initial shares purchased by the Buyer could be bought back in the future. However, if the put option is executed it will also include an above-market fixed rate of return just in case the newly formed relationship does not pan out to everyone’s satisfaction.

NDA is required for comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.

Detailed Information

Facilities: Awesome facilities, leased premises, shows PHENOMENALLY!

Competition: Technology service providers generally is a relatively competitive space.

Growth & Expansion: Perfect platform play.

Financing: If the price and deal structure is right.

Support & Training: As needed.

Reason for Selling: Seller would like to team up with someone to acquire companies faster on a dedicated strategy for an imminent 9 figure exit.

Contact info

Pronova Partners

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