Do you own a small public or private company, which you are looking to sell?
NanoCapNation is searching for small public companies, which have good scalable, rampable
potential .... for example, companies that need growth financing
or have been poorly capitalized in the past and need reorganization.
NanoCapNation is also in touch with over 50 business brokers around the United States who are looking for suitable private companies that can be brought public.
Some of the characteristics these companies must have are:
1. Sales between $2-20 million. This is the preferred sweet spot but companies
outside this area will be considered.
2. EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) between $500 thousand and $3 million. This is the preferred area but companies outside this area will be considered.
3. The target would be to pay a total purchase price of not more than four times EBITDA. Must be able to arbitrage into public markets at a multiple of at least 2 to 1. (e.g. If the target company is purchased at 4 times EBITDA as a private company it must be able to command a minimum of 8 times EBITDA as a public company).
4. A capable core management team that may need to be supplemented by one or a few specialists.
5. Must have the ability to grow rapidly and/or integrate industry acquisitions.
6. The company must be capable to attract investment for a public company financing.
Some of the reasons why public companies are more appealing to investors:
1. Liquidity & Ownership Transferability
2. Established Value for Stock by Market Place
3. Use of Common Stock as Equity or Currency for Acquisitions
4. Independent Third Party Audited Statements
5. Regulated by S.E.C. (Safety for Investors)
6. Higher Valuation for Public Companies than Private Companies.
If you have a small private or public company that meets our criteria, which you are looking to sell, please contact us.