Here you will be able to find what we look for in possible partnerships. and you can access the document by downloading the file below.
We encourage you to reach back out if your company does not currently meet the investment criteria but is approaching that important milestone.
THE BEGINNING OF THE PROCESS
The conversation will be initiated by one of our Mergers & Acquisitions Analysts or Associates. After an exploratory call is completed, a call will then be scheduled with the for further discussion after signing a mutual NDA. If there is mutual interest and both parties believe there can be a potential partnership, we begin the review process of your company financials, to structure a valuation.
FINANCIAL VALUATION PROCESS
The valuation would be calculated based on your normalized EBITDA or annual recurring revenue (ARR) if you offer software solutions. In each partnership, we incorporate your compensation and review possible non recurring expenses, not exceeding 10% of the company’s total ordinary income. Some required documentation will include the company's last 3-years and year-to-date financial statements. Our team will look for trends and historic performance, along with other factors such as YOY (year-over-year) growth, TTM (trailing twelve months), the number of employees, and new locations since inception. The experience and size of your executive team will help us determine how much support would be required post partnership. Whether your group qualifies to be a platform acquisition is determined during the underwriting process. Once the company valuation is completed, a formal proposal would be drafted in form of an indication of interest (ioi). Subsequently, an LOI (letter of intent) is issued by KVLR subject to board approval to begin the formal diligence stage to include a quality of earnings report and compliance review, and medical billing audit if applicable.
Prospective Companies Achieved:
EBITDA of $1MM+ (earnings before interest, taxes, depreciation and amortization)
EBITDA has to include market norm compensation for owners and employees.
Minimum EBITDA margins of 15%
Greater than 3 years since inception
Remaining in the company for 5 to 7 more years post-acquisition
No pending litigations or compliance issues
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