We have up to $18 million in equity capital available to complete a transaction. Depending on the structure of the transaction, we may be able to acquire a business valued up to approximately $40 million.
I am looking for businesses with a minimum of $1.5 million in EBITDA, or pre-tax profits, and a minimum of $10 million in revenue. We will look at businesses with sales of between $2.5 million and $5 million that have a high degree of annual recurring revenue.
We look at various factors when coming up with a valuation such as, quality of revenue, historical performance, future business/industry outlook, ease of transition, etc. In general, our offer will be in line with typical private equity or strategic acquirers.
We have patient capital, allowing us to think strategically and focus on long term value creation. Jodabit Partners is able to offer flexible deal terms to support the interests of a seller and the great company they have built
I am supported by a group of seasoned investors who have led full cycle M&A processes for similar capped acquisitions. With my prior experience, and their support, we will move quickly to close the proposed transaction once a promising business is identified.
Jodabit Partners is named after the holding company via which my family ran their small businesses. Working there, I learnt useful qualities required to be a successful entrepreneur - hard work, sacrifice, honesty, perseverance, humility, determination, and a willingness to listen and learn. These are qualities I and my partners strive to instill in Jodabit Partners.
My parents ran and operated several small businesses. Growing up, I had the good fortune of working for them as they conducted daily operations. My experiences over this period helped me understand that the entrepreneurial pursuits is my trigger for self development. Striving to continuously become the best version of myself is an effective way to help those around me to grow and reach their full potential.
Yes. After we have an agreement, we will have a 6-18 month transition period where your roles and responsibilities are passed on.
You will certainly have more knowledge and experience of your business than any other person on the day the transaction closes. However, the 12-18 month overlap between you and me serves to smooth the transition period and narrow the knowledge gap.
Between the skills and experiences that I am able to bring to the table, my advisory investor group, and the opportunity to work with you over a transitionary period, we will build a succession plan and instill a learning environment that facilitates building on your legacy.