Seeking capital.
“They bought a $1.5 billion technology business. Then shut it down 4 years later.”
UNDER LOI. We are seeking debt capital to acquire a controlling interest in a technology company with a unique value proposition and SaaS opportunities.
History:
In 2010, Agilent Technologies bought Varian Technologies for $1.5 Billion. They closed the company four years later.
To this day, universities, labs, and consumer products companies around the world that spent millions of dollars acquiring these highly-specialized scientific devices from Varian struggle to keep them operating.
One small company stepped in and became a national provider of monitoring, maintenance, and repairs to these complex instruments. Founded in 1986 by a leading figure in the industry, the company also refurbishes and sells these instruments, bringing margins in excess of 40%.
The company is also the sole U.S. distributor of a competing upstart instrument manufacturer. Offering improved technology, lower prices, and more reliable service, it stands to become a leader in this burgeoning field.
Future growth opportunities
Leverage current owner’s contacts and reputation in the field to identify and roll up the service market
Develop and deploy a SaaS monitoring platform; Expand to other scientific instruments
Create a multi-tiered subscription-based service with geographical and vertical concentrations
Phase out the sale of refurbished instruments; deploy a full-scale sales initiative of the new instruments
Projected Equity - Post Acquisition
Buyer is seeking to acquire a 51% controlling interest in the company
Seller will retain a 49% equity interest and continue as a manager
Source of Funds:
Senior debt and buyer cash: $3,875,000
Use of Funds:
Cash to seller in the amount of $3,675,000
Acquisition costs in the amount of $200,000
Primary Contact:
JC Schnabl, Ed.D., MBA
--@----.com
industry
Technology
Technology
location
Northeast U.S.
Northeast U.S.
revenue
$6,000,000
$6,000,000
ebitda
$1,500,000
$1,500,000
proposed price
$7,500,000
$7,500,000
target debt
$3,875,000
$3,875,000
SBA eligibility
no
no
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