Acquisition Criteria
Business transitions that work for you
We are committed to helping you navigate the complexities of selling or transitioning your company with personalized, expert guidance, at every stage of the process.
Acquisition Criteria
We're searching for an easy-to-understand, service-based business that generates $5M+ in recurring revenue. We're looking for a company that meets most of the following characteristics:
What we’re looking for
Industry
■ Growing industry (ideally 10%+ industry growth year-over-year)
■ Low business cycle exposure
Company
■ Loyal customer base
■ Defensible competitive advantage
■ Essential, mission-critical product or service for customer
Financial
■ 50%+ revenue is recurring
■ Demonstrated profitability and growth
■ Ideally $2 - $10 million in cash flow or $2 - $6 million ARR
Ownership Situation
■ Owner nearing retirement
■ Owner looking to reduce involvement
■ Owner planning to pursue other ventures
How does a business acquisition work?
Confidential Call
Discuss your interests around your transition or exit plans in the context of our acquisition criteria.
Agreement
Both parties see a potential fit and agree to move forward with more in-depth discussions regarding the company’s financial and strategic position.
NDA
Signing this NDA ensures your business’ proprietary information remains private and enables us to begin determining your company’s valuation.
Letter of Intent
Agree on a proposed valuation of your business and negotiate exclusively towards a final sale; we’ll share a list of items to be reviewed in the due diligence process.
Due Diligence
Once under LOI, we will perform an efficient vetting of your business, products / services, operations, customer base, assets, and liabilities, etc.
Closing
Finalize the purchase agreement, working capital requirements, and the transition / training timeline (if needed).
Does Kithe match your goals?
Learn more about the next steps in the business transition process. Get in touch today.