Recurring Revenue - Document Management Business

• The Company offers a variety of secure services ranging from general document scanning and storage to specialized medical records custodianship, data management, and scanning of large blueprints and antique books. • Recurring Revenue – Customers sign multi-year contracts with an attractive recurring revenue component. Customers have a high satisfaction rate and projections call for an increase in revenue from $6.0m 2022F to $18m by the end of 2025 • Company has turned cash flow positive since we took control, has been growing at 80% annually, and will operate at an estimated 5% EBITDA margin in 4th quarter with a sizeable backlog of work that will drive revenue in 2023 as we invest in scanners, people, space. • Attractive structure pricing – This is a proprietary deal that came from one of our Limited Partners. • Exit opportunities –Exit opportunities are attractive in this industry with multiple PE firms targeting record management firms in New England. Other firms have previously closed at 13x multiples of EBITDA. • Rapid growth industry – The record management industry is expected to see a 16.8% CAGR through 2029 due to need for digitization in medicine and the growth in remote work. • $1 million out of the $3 million necessary has already been raised with tenured operating advisors joining the investment. • Fragmented industry – There is a large concentration of record management firms in New England which creates an opportunity for bolt-on acquisitions. • North Haven Value Add – One of North Haven Capital’s LPs with a successful operating background has invested and is taking an active role advising company management spending significant time on the ground.