Making acquisitions and re-investing in acquired businesses is the central focus of Nobelium’s corporate strategy.
We are interested in software or technology platform businesses that serve particular industry needs or that have software applications across multiple industries.
Our general acquisition criteria are the following:
- Knowledgeable, passionate, stable management team willing to continue
- Software or platform technology companies with $3m – $20m revenue
- EBITDA minus sustaining capital expenditures of greater than $0
- Runway for growth in broader vertical market
- Strong customer captivity / revenue predictability and visibility
We have a preference for software-as-a-service SaaS (or platform-as-service) business models, but our interest spans all software and platform business models including perpetual/maintenance license revenues, and on premise or cloud delivery methods.
We like software businesses with the following financial characteristics:
- Above average revenue growth
- Stable margins, with leverage to fixed costs/assets
- High returns on invested capital
- Deferred revenues
We like software businesses with the following qualitative characteristics:
- Customer captivity and revenue predictability
- Mission critical software
- High switching costs, network effects
- A history of low customer churn
- Long product life cycles
- Minimal service and support component
We seek 100% ownership but we will also consider majority equity investments should the vendor wish to retain a share in their businesses future success. Nobelium will evolve over time to be exclusively a cash buyer, however, it is likely that consideration for early transactions will be paid in cash, vendor take back notes (“VTB”) and shares of Nobelium.
We will always provide quick turnaround on initial inquiries and work expeditiously to deliver LOIs and to close transactions.