Product Note
An U.S. based software organization is keen to buy majority / full stake in multiple small software companies in India.
The preferred profile of the ideal target company to buy is as follows:
Employee Size: | Maximum 50 employees |
Years of Existence: | ~3+ years |
Profitability: | Positive Net Profit for the last 3 years |
Cash Flow: | Generating positive Free Cash Flow for the last 3 years |
USP of the company: | Extremely strong technical specialization around technologies such as, but not limited to SAP / AI / ML / RPA / ACES etc. |
The ideal fit would be a company that has had slow revenue growth over the last few years, due to lack of on-site sales team or due to other reasons. The buying company has extremely strong sales team in the U.S.. Their intent is to leverage their sales team across the U.S., and help generate more business for their group companies.
The intent is to have the current management continue to run the company going forward.
The company will either buy:
1) 100% stake in the company, or
2) 75% stake in the company to the start with, and the rest 25% stake in the next 2 years