Pipeline – 2017-10-22 – M&A Cost Per User


Our motto is “Say Provocative statements that intelligent people argue about fast without dotting your i’s and crossing your t’s. As life is all about fun and results!” – JD Morris

Here are a few recent private equity deals with TopSpin Security at the top of our list!

• Marlin Equity Partners acquired TopSpin Security, an Israel-based provider of network-based deception and detection technologies. Financial terms weren’t disclosed.

• Knox Capital Holdings LLC recapitalized HaystackID LLC, a Boston, Toronto and Paris-based eDiscovery and forensics services provider. Financial terms weren’t disclosed.

• Webster Capital acquired Cirrus Medical Staffing, a Charlotte, N.C.-based provider of travel nurse and travel allied healthcare professionals. Financial terms weren’t disclosed.

• Sheridan Capital Partners recapitalized Smile Doctors, a Temple, Texas-based orthodontic service provider. Financial terms weren’t disclosed.

• Duke Street acquired a controlling stake in TeamSport Karting, a U.K.-based indoor go-karting operator. Financial terms weren’t disclosed.

• High Road Capital Partners acquired Akron Hardware Consultants, Inc, an Akron, Ohio-based wholesale distributor of door hardware. Financial terms weren’t disclosed.

• American Health Staffing Group, Inc, a portfolio company of BelHealth Investment Partners, acquired Advance Med, a Frisco, Texas-based provider of travel staffing.

DISCLAIMER:  This information is provided by AP, Bloomberg, Forbes, Fortune,  preqin, Reuters, TechCrunch, VentureBeat, Wall Street Journal (WSJ), and other 3rd party sources.  Please check with the company website as this a beta blog and will not be updated.solutions to hospitals nationwide.

#provocativestatement Are moonshot to Unicorn better than plan old EBITDA?  Not sure I have seen anyone one the Fortune 500 business owner that did not get take moonshot and then buy some EBITDA companies.  Even Google acquired ad companies for revenue and EBITDA. with EBITDA and users.

acquisition-cost-per-user-top

IN on Deck – keep it simple


“One should use common words to say uncommon things” – Arthur Schopenhauer

Again we trying to pivot and open with quote!  I have to say keep it simple from your words to your goals as it helps in getting results!

Our goal is networking for results!  Our moto is “Say Provocative statements that intelligent people argue about fast without dotting your i’s and crossing your t’s. As life is all about fun, networking, and results!” – JD Morris

When working with people keep it simple, keep it core, use common words, and bottom line is focus on results (i.e. simple, core, common, etc.).  However, you will need to hunt, chase, hound, pursue relentlessly, etc.  being provacative, pushy, creative, etc. to get results!  Must people do not take action!

FYI: I waiting for 5 plus people to send me information to move forward with just simple summary of their business! Not even full executive summary.  I need a bad cop on my team!

COOL .JPG

Although you can say things have slowed down and hard to get results from people, I think it fair to say Unicorns are still trending!  People are still taking actions and getting results! CB Unicorn

DEAL DUMP

Let us do two day strategy with organic and M&A strategies to help you take action and get results!  1q2016 action = people needing to meet their 2016 goals (i.e. executive bonuses based on results)!  Look for lots small deals that will not make the press!

We have done deals with Spectrum Equity, GE, to name a few!  More important, here is the data dump:

  • Spectrum Equity has invested in Tenstreet, a Tulsa, Okla. provider of driver recruiting and workflow management software for the trucking and transportation industry. Financial terms were not disclosed.
  • GE has acquired Bit Stew Systems, a Vancouver, B.C.-based machine learning platform, and Wise.io, a Berkley, Calif.-based advanced machine learning technology. Financial terms were not disclosed. Bit Stews raised $24.3 million from investors including GE Ventures, Cisco Investments, and Yaletown Partners. Wise.io raised $3.6 million from investors including Voyage Capital.
  • Anchorage Capital Group and Little John & Co. have sold Contech Engineered Solutions, a West Chester, Ohio-based provider of infrastructure services for engineers, contractors, and architects, to QUIKRETE Holdings. Financial terms were not disclosed.
  • Five Points Capital has invested in the previously announced LNC Partners-led recapitalization of OutSolve, a Metairie, La. provider of affirmative action planning and compliance services for federal contractors.
  • Rubicon Oilfield International, a Warburg Pincus portfolio company, has bought Top-Co Holding, a provider of oilfield casing, cementing and completion products. No financial terms were disclosed.
  • FFL Partners has agreed to acquire Crisis Prevention Institute, a St. Louis-based provider of crisis prevention, non-violent physical intervention, and dementia care training, from Brockway Moran & Partners. Financial terms were not disclosed.
  • Koch Equity Development, the investment arm of Koch Industries, has invested $2.5 billion for a stake in Infor, which sells financial and manufacturing software to businesses. The deal values Infor at $10 billion. The company’s existing shareholders, including Golden Gate Capital, Summit Partners, and Management, will maintain control of the company.
  • Wireless communications provider NewNet Communication Technologies, a Skyview Capital portfolio company, has agreed to sell its RCS Business to Samsung. Financial terms were not disclosed.
  • Bernhard Capital Partners-backed Brown & Root Industrial Services, a Baton Rouge, La.-based operator of engineering, construction, and maintenance services, has acquired MEI Group, a Malvern, Pa. full-service turnaround specialist for industrial facilities globally. Financial terms were not disclosed.
  • Teakwood Capital has invested in HomeSphere, a Denver provider of digital lead generation and customer retention tools for builders and contractors. Financial terms were not disclosed.
  • Peak Rock Capital has sold Koroseal Interior Products, a Fairlawn, Ohio-based company that distributes and manufactures commercial interior products, to Sangetsu Corp. Financial terms were not disclosed.
  • FineLineTechnologies, a Norcross, Ga.-based provider of data and RFID solutions, has undergone a recapitalization from Summit Partners. Terms of the recap were not disclosed.
  • Phononic, a Durham, N.C.-based provider of solid-state cooling and heating technology, closed a $71 million investment with an additional $40 million in funding from UBS’ wealth management businesses. The syndicate of investors includes GGV Capital, Lookout Capital, Eastwood Capital Corp, Venrock, Oak Investment Partners, Tsing Capital, Huaneng Invesco WLRoss, Wellcome Trust and Rex Healthcare Ventures.

DISCLIAMER: Please always check with the website of the company or investor as this information is from the Associated Press, Bloomberg, CB Insights, Forbes, Reuters, Wall Street Journal, or other 3rd party sources.

BOTTOM LINE

You would be amazed how many deals from ideas, accredited, Venture Capital, Private Equity, etc. are done each week!  Bottom line come to SoCal (or DC, Hong Kong, London, NYC, and few other great location we know well) and let us relax, enjoy life, and make your strategy and vision unfold for 2017!

Happy Networking & Investing,

JD Morris

JD Morris

https://www.linkedin.com/in/jdmorris

Here is our tag line: “Say Provocative statements that intelligent people argue about” fast without “dotting your i’s and crossing your t’s.” Here is where you can find us below the .JPG logo!

investor-network

 

1. Facebook with 3.2+ subscribers (best URL)

https://www.facebook.com/InvestorNetwork/

2. My Linkedin Profile (best referrals to date)

https://www.linkedin.com/in/jdmorris

3. Linkedin Sell Your Company with 9,527 members

https://www.linkedin.com/groups/2593533

4. LinkedIn Investor Network with 5,180 members

https://www.linkedin.com/groups/53760

5. Investor Network Newsletter with 70K plus members

RSVP investornetworkbyJD@Gmail.com

6. Accredited Investor Network with 12k plus accredited investor members

RSVP info@AccreditedInvestorNetworking.com

7. Tweeter  @INbyJD has 1,504 subscribers

https://twitter.com/INbyJD

8. Tweeter @investingbyJD has 1,329 subscribers

https://twitter.com/investingbyJD

9. Instagram Growth Capital by JD has 239 followers (just launched)

https://www.instagram.com/growthcapitalbyJD/

10. Pintrest (just launched)

https://www.pinterest.com/jdmorrisSR/investor-network-by-jd/

 

 

EBITDA Pipeline – Surveying EBITDA Business Owners


Investor Network by JD (A raw blog with facts and no time to cross Ts!)

WHAT IS HOT

We are conducting a survey with business owners of EBITDA companies. Our goal is to produce a Webinar series and other educational resources to address their major concerns. From growth to exit as well as their personal life.  Contact JD via text at +1 858-869-9483 or JD@RedHookCapital.co anytime.

COOL IMAGES

Always cool to see exit image even if it is based on VC back exits!

exit

NETWORKING THIS WEEK

We are focusing on almost all EBITDA companies because we provide referrals to other investors.  Today we cove some of our focused areas in specialty manufacturing and industrial technology:

  • Test & measurement
  • Flow & process control
  • Instrumentation & sensors
  • Connectivity
  • Filtration (liquids)
  • Other high value-added niche manufacturing segments Consumer Products and Services

Again, the key is a company that needs growth capital or possible consolidation play based on few high margin products for the cornerstone of the consolidation company.  I call it the cake and frosting play (i.e. high margins = frosting).

Referrals are always welcome for growth capital, consolidation, or strategy session for few hours or few days!  Text JD Morris at +1 858-869-9483

DEAL PIPELINE

Here is a list of deals based on sales, closings, IPOs, and more!  Please always check with the website of the company or investor as this information is from the Associated Press, Bloomberg, CB Insights, Forbes, Reuters, Wall Street Journal, or other 3rd party sources.  These deals are picked because one of our advisors is an expert in the space.  Here is the Pipeline:

AC Immune SA, a Swiss biopharma company focused on developing treatments for neurodegenerative diseases associated with protein misfolding, raised $66 million in its IPO. The company priced 6 million shares at $11 per share (low end of $11-$13 range), for an initial market cap of around $609 million. It will trade on the Nasdaq under ticker symbol ACIU, while Credit Suisse, Jefferies and Leerink Partners served as underwriters. Shareholders include Dievini Hopp BioTech (37.7% pre-IPO stake). www.acimmune.com

Accruent, an Austin, Texas-based provider of real estate, facilities and asset management software, has acquired Verisae Inc., a Minneapolis-based provider of IoT cloud software that that connect facilities and assets to maintenance and service networks. No financial terms were disclosed. Accruent is a portfolio company of Genstar Capital, while Verisae had been backed by Marlin Equity Partners.www.accruent.com

Advent International is the leading bidder for Morpho, the biometric security unit of Safran SA (Paris: SAF), with an offer of around $2.7 billion, according to Bloomberg. Rival bidders include Gemalto NV and unidentified buyout firms (we are not acquiring them).

Apple (Nasdaq: AAPL) has acquired India-based machining learning startup Tuplejump for an undisclosed amount.  More via TechCrunch!

Hill-Rom (NYSE: HRC) has acquired Tridien Medical, a Coral Springs, Fla.-based maker of patient positioning and other medical devices, from Compass Diversified Holdings for an undisclosed amount. www.tridien.com

LET US TALK

I would enjoy speaking with anyone about commercial or residential plays!  We are making a commercial map, but for residential the below works!

Accruent, provider of real estate, facilities and asset management software, has acquired Verisae Inc. continues to show that real estate is a hot space.  Residential is booming with Unicorns.  Commercial is ripe!

Contact JD Morris via text at +1 858-869-9483 to talk strategy, growth capital, or exit anytime!

REAL ESTATE cbiNSIGHT

Happy Networking and Investing,

JD Morris

JD Morris

https://www.linkedin.com/in/jdmorris

Investor Network by JD

NETWORKING: Healthcare with EBITDA $4 million plus


healthcare

For healthcare we have two areas of interest!  Any government contractor in the space and for private sector companies we need $4 million plus in EBITDA.

Examples EBITDA Private Health Care Services Company:

  • Dental services & group practice
  • Laboratories
  • Dermatology & group practice
  • Revenue cycle management
  • Urgent Care

MORE INFORMATION:

Investment Types • Investments to acquire all or part of a company
• Management-led build-ups and industry consolidations
• Growth capital
Company Characteristics • Strong management team in place
• History of growth and profitability
• Strong underlying fundamentals; low capital intensity
• $4 – $15 million in Operating Income / EBITDA
Investment Size • $10 – $50 million of equity
• Access to partners with mezzanine financing with our equity investment
Geography • Companies based in the U.S. or Canada

Happy Networking,

JD Morris

JD Morris

Join me on LinkedIN:  http://www.linkedin.com/in/jdmorris

INVESTOR SOCIAL NETWORKING:

Facebook URL: https://www.facebook.com/InvestorNetwork

Twitter URL: https://twitter.com/RedHookCapital

LinkedIN URL: http://www.linkedin.com/groups/Investor-Network-JD-Morris-Accredited-53760/about

My Focus for rest of 2016 is finding EBITDA Companies and their owners!


Through a syndication, we can invest over $100 million in a deal.  However, our focus is not size or valuation! Or focus is building a company for success!

Leadership, Creativity, and Success.

An investment philosophy that cultivates value by investing in change.

A team of experienced investors with strong industry expertise.

Investments across a wide range of industries and geography.

We provide to private companies creative capital, structured for each investment opportunity. Our wealth of experience, industry expertise, deep operating skill sets and large global network of affiliated partners position us as a vital resource from which management can draw strategic, financial and operational guidance.

Red Hook Capital invests in companies across a broad range of industries and geographies. Our goal is to help management teams build long-term value that benefits all stakeholders. We structure our private equity investments based on each company’s circumstances and generally seek to invest in established businesses requiring equity capital between $10 million and $1 billion.

Red Hook Capital maintains a broad acquisition profile focused on acquiring businesses with its equity partners that exhibit a certain set of characteristics:

> fragmented market

> recurring revenues

> loyal customers

> strategic complements to our portfolio

This acquisition profile enables us to identify opportunities for creating value in virtually any industry. Here are example of ours of interest based on our partners and limited partners.

TELECOMMUNICATIONS

  • Mobile
  • Broadband
  • Wide Range services based on growth and EBITDA

SPECIALTY MANUFACTURING / INDUSTRIAL TECHNOLOGY

  • Test & measurement
  • Flow & process control
  • Instrumentation & sensors
  • Connectivity
  • Filtration (liquids)
  • Other high value-added niche manufacturing segments Consumer Products and Services
  • Wide Range of companies based on growth and EBITDA

BUSINESS SERVICES

  • Business process outsourcing
  • Governance, risk & compliance for financial institutions
  • Outsourced municipal services
  • Outsourced corrections services

EDUCATION AND TRAINING

  • Continuing education
  • Assessment, tutoring & testing / certification preparation
  • Corporate training

HEALTH CARE SERVICES

  • Dental services & laboratories
  • Dermatology
  • Revenue cycle management
  • Urgent Care
  • Medical Devices

BOTTOM LINE

  • Strong Management Team
  • Strong Growth Story
  • $5 million plus in EBITDA

We will find a way to help you grow or find a short term exit strategy!

Deals that close plus focus on exit strategies for Sequoia Capital


We have more than 20 executives that have exited their industry and can advise you!  For fast 15 meeting online or 2 day retreat text JD Morris +1 858-869-9483 anytime.

We are all about results!  Skip to the end to see deals that closed this month or Join our network!   Learn more!

SEQUOIA CAPITAL

Since the start of 2015, Sequoia has realized 21 exits including 4 IPOs and 17 acquisitions.  We have some the industries top advisors for acquisitions.

Here are some of Sequoia’s notable recent exits:

  • Cancer drug startup Stemcentrx was acquired by AbbVie for as much as $10.2B. Sequoia first invested in Stemcentrx’s $200M Series F round in May 2014.
  • Sequoia was a Series A investor in Jasper Technologies, a software platform for the Internet of Things. Jasper was acquired by Cisco for $1.4B in February 2016.
  • Square went public at a $2.9B valuation in November 2015 and today has a market cap of $3.2B. Sequoia led a $31.8M Series B round at a $240M valuation in January 2011.

The scatterplot below highlights Sequoia’s exits over time (those with disclosed valuations).

sequoia2

Investor Network has amazing tools to review your deals.  Just ask us for short Join.me or GoToMeeting or visit us in SoCal from Coronado to Beverly Hills.

To read more about Sequoia Capital: https://goo.gl/8I7173

VC DEALS THAT CLOSE

• AristaMD, a San Diego-based provider of specialist referral support tools, has raised $11 million in Series A funding. Avalon Ventures led the round, and was joined by Correlation Ventures. www.aristamd.com

• CargoX, a Brazil-based provider of on-demand trucking services, has raised $10 million in Series B funding. Goldman Sachs led the round, and was joined by Valor Capital Group and return backers like Agility Logistics and Lumia Capital.www.cargox.com/br

• Deposit Solutions GmbH, a German fintech startup focused on the European retail deposit market, has raised €15 million in VC funding at a €110 million valuation. Backers include Valar Ventures, FinLab and Greycroft Partners.www.deposit-solutions.de

• Kazan Networks Corp., an Auburn, Calif.-based data storage performance startup, has raised $4.5 million in Series A funding. Samsung Ventures led the round, and was joined by Intel Capital and Western Digital Corp. www.kazan-networks.com

• N-of-One, a Lexington, Mass.-based precision medicine oncology decision support company, has raised $7 million in Series B funding from Providence Venturesand Excel Venture Management. www.n-of-one.com

• Redis Labs, an open-source data structure store, has raised $14 million in Series C funding. Bain Capital Ventures and Carmel Ventures co-led the round, and were joined by return backers like Silicon Valley Bank. www.redislabs.com

• ReviewTrackers, a Chicago-based customer feedback platform, has raised $4 million in growth equity funding led by American Family Ventures. The company also secured a $2.1 million debt facility from Square 1 Bank.www.reviewtrackers.com

• Stardog, a Washington, D.C.-based enterprise data unification platform, has raised $2.3 million in seed funding led by Core Capital and Boulder Ventures.www.stardog.com

Information provide by Associated Press, CB Insight, Crunchbase, Forbes, Market Watch, Reuters, and other sources.  Please check company website for best information.

Referrals to business owners and the people that support these owners such as accountant, lawyers, and others is welcome!

Happy Networking,

JD Morris

JD Morris

Join me on LinkedIN:  http://www.linkedin.com/in/jdmorris

INVESTOR SOCIAL NETWORKING:

Facebook URL: https://www.facebook.com/InvestorNetwork

Twitter URL: https://twitter.com/RedHookCapital

LinkedIN URL: http://www.linkedin.com/groups/Investor-Network-JD-Morris-Accredited-53760/about

 

 

 

Growth Capital for Consumer Products and Services (Case study Baton company)


Baton Angel

Text JD Morris at 858-869-9483 if you own a company with $5 million in EBITDA.  Referrals to Lawyers, Accountants, Board of Directors, and other people is always welcome.  Today I am meeting with lawyer that assisted in the formation, funding and/or sale of 25 food and beverage companies.  Here is more about Consumer Products and Services such as health food companies.

Consumer Products and Services

  • Baby / juvenile products
  • Enthusiast products & services
  • Franchisors / franchisees
  • Healthy foods & beverages
  • Personal care services
  • Pet products & services

Our limited partners and strategic partners have also invested in this area.  Should we not be able to invest, we can always provide a referral.  For example, I just meet with an investor that does $1 million plus EBITDA investment that invested in a candy maker.  We  invested in a Baton company from angel investment, growth capital, and exit with an acquisition.  More about our investment criteria:

More about investment criteria

Investment Types • Investments to acquire all or part of a company
• Management-led build-ups and industry consolidations
• Growth capital
Company Characteristics • Strong management team in place
• History of growth and profitability
• Strong underlying fundamentals; low capital intensity
• $4 – $15 million in Operating Income / EBITDA
Investment Size • $10 – $50 million of equity
• Can also provide mezzanine financing with its equity investment
Geography • Companies based in the U.S. or Canada

We are happy to speak with any company that has shown EBITDA on their 2015 tax returns.  The best contact is via text to JD Morris @ +1 858-869-9483 as we get ton on LinkedIn mail and e-mail to my inbox!

 

Happy Networking,

JD Morris

JD Morris

Join me on LinkedIN:  http://www.linkedin.com/in/jdmorris

INVESTOR SOCIAL NETWORKING:

Facebook URL: https://www.facebook.com/InvestorNetwork

Twitter URL: https://twitter.com/RedHookCapital

LinkedIN URL: http://www.linkedin.com/groups/Investor-Network-JD-Morris-Accredited-53760/about

EMAIL NEWS LETTER:

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