Yo!

Been a long time, y'all, but I did mean it when I said I wouldn't bother you.

Here's the latest opportunity from Andrew Swiler and BlinkHoldings!

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From Andrew (Twitter: @swilera)

We are closing soon on an HR SaaS platform, for a 1x Sales multiple.  We have $650k in commitments from some great SaaS investors like Tinyseed, smash.vc and an ex-Vista Equity partner. We are looking to add $100k-$200k more to close the deal. 

There are two mega trends we see in this acquisition:

• Companies (like ours) are going fully remote and need better tools to manage and onboard employees.
• Microsoft's enterprise user base is growing 100% YoY, and it's ecosystem is expanding to catch up.

The target company is the only all in one HR management platform built on Microsoft Sharepoint. 

What does that mean? The product fits beautifully into any company in the Microsoft ecosystem (and there are a lot of them). 

With more employees demanding remote work options, companies need to manage their people wherever they are. HR is a crowded space, but the target co differentiates itself by offering custom modules and a more “concierge” experience for its up market customers.

Another priority for remote work is education and onboarding for employees. The target company allows for HR managers to build onboarding workflows for each new hire. The company also offers a library of licensed education content from Linkedin Learning and a handful of other sources.

Why invest with us?

We own an 80 person B2B SaaS agency, and we have cofounded various startups. Our most successful spinoff so far has been Syndication Pro, with $1 million in ARR. 

We will focus on building channel partnerships, SEO, outbound, and optimizing PPC marketing to grow sales above $5 million. 

On the product side we see HR as one of the few pieces of software that needs to be user friendly for the whole company. HR wants each employee to manage themselves, where CRMs or accounting software is handled by trained employees. 

So we will invest in making the platform user friendly for anyone in the company.

The Numbers

Now you know our thesis, have a look at the economics:

• $1.8 million purchase price
• $1.89 million TTM Sales
• $420 TTM EBITDA
• Projected LP IRR: 28-40% 
• Projected MOIC: 3-5x

We are also building in some very attractive tax incentives thanks to our CPA, BKD. Between QSBS, and depreciation the entire transaction could be paid for through eventual tax savings.

Link for the presentation: https://drive.google.com/file/d/1IAsYFPRnFBypJPSjZJnYf4jJHpsb5Jt6/view?usp=sharing

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