Acquisitions – Stages & Types

TARGET MARKETS – SWEET SPOTS

We have various tools and resources within our private, password protected Managing Director or Managing Enterprise Director “Back Office” Area, aka the “Dashboard,” that are designed to further your understanding of the capital markets, securities used for capitalization and the various characteristics of our target markets.

Below you’ll find a Matrix table for Terms used by our industry for the various STAGES & TYPES of companies and TYPES of Capital, within our limited target market and the TERMS of capitalization used.

Be sure to view the Comment Boxes, as they are especially important to review until this knowledge becomes second nature to you.

The following statements serve to set your expectations for the TYPES of Companies at their various STAGES.

Start-Ups.

STAGE:

By Industry Definition it’s normally looked at from an IDEA infancy standard, necessitating their first round of seed capital for continued growth. Normally, revenue 0 and EBIDTA (-$1M-0). However, because we deal only in the earlier stages of a company’s existence. From our prospective it simply means: PRE REVENUE.

 

TYPE:

Silver: We MAY NOT want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is probably a WASTE OF TIME for the scope of our purpose. They may never be BD ready but do need our assistance. This statement serves to set your expectations for this STAGE of a Co. of this TYPE. They would be PERFECT to recycle through our Corp. Engineering Conservatory for friction free capitalization.

Gold: We ABSOLUTELY would want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is probably PERFECT for the scope of our purpose. They are almost BD ready and do need our assistance..

Platinum: We ABSOLUTELY would want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is probably PERFECT for the scope of our purpose. They are almost BD ready and do need our assistance.

 

Early Stage

STAGE:

By Industry Definition it’s normally looked at from a sales infancy standard, necessitating further development capital for continued growth. Normally, sales of $1M-$5M and EBIDTA (-$5M-0). However, because we deal only in the earlier stages of a company’s existence. From our prospective it simply means: POST REVENUE, PRE PROFIT

 

TYPE:

Silver: We MAY NOT want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is probably a WASTE OF TIME for the scope of our purpose. They may never be BD ready but do need our assistance. This statement serves to set your expectations for this STAGE of a Co. of this TYPE. They would be PERFECT to recycle through our Corp. Engineering Conservatory for friction free capitalization.

Gold: We ABSOLUTELY would want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is probably PERFECT for the scope of our purpose. They are almost BD ready and do need our assistance. This is our SWEET SPOT.

Platinum: We ABSOLUTELY would want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is probably PERFECT for the scope of our purpose. They are almost BD ready and do need our assistance.

 

Later Stage

STAGE:

By Industry Definition it’s normally looked at from a sales maturity standard, necessitating expansion for continued growth. Normally, sales $5M to $25M and EBITDA $1M-$5M. However, because we deal only in the earlier stages of a company’s existence. From our prospective it simply means: POST PROFIT

 

TYPE:

Silver: We MAY NOT want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is probably a WASTE OF TIME for the scope of our purpose. They may never be BD ready but do need our assistance. This statement serves to set your expectations for this STAGE of a Co. of this TYPE. They would be PERFECT to recycle through our Corp. Engineering Conservatory for friction free capitalization.

Gold: We ABSOLUTELY would want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is probably PERFECT for the scope of our purpose. They are almost BD ready and do need our assistance..

Platinum: BEYOND SCOPE? Although we certainly would want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is PROBABLY BEYOND THE SCOPE of our purpose. They are most probably BD ready and do not need our assistance. This statement serves to set your expectations for this STAGE of a Co. of this TYPE.

Divestiture Stage

STAGE:

By Industry Definition it’s normally looked at from a founders’ need for exit, necessitating both buy-out and expansion capital for continued growth. Normally, sales $5M to $25M and EBITDA $1M-$5M for CC.

However, because we deal only in securities as our capitalization methods the acquiring Mgmt. Team, more often than not the junior mgmt. team, must be willing and able to manage the complexities of a securities offering.

 

TYPE:

Silver: We MAY NOT want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is probably a WASTE OF TIME for the scope of our purpose. They may never be BD ready but do need our assistance. This statement serves to set your expectations for this STAGE of a Co. of this TYPE. They would be PERFECT to recycle through our Corp. Engineering Conservatory for friction free capitalization.

Gold: We ABSOLUTELY would want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is probably PERFECT for the scope of our purpose. They are almost BD ready and do need our assistance..

Platinum: BEYOND SCOPE? Although we certainly would want to engage in the first video conference call to see IF we can be of service, a Prospective Portfolio Company of this STAGE with a Diagnostics Rating that achieves this TYPE is PROBABLY BEYOND THE SCOPE of our purpose. They are most probably BD ready and do not need our assistance. This statement serves to set your expectations for this STAGE of a Co. of this TYPE.

TYPE OF CAPITAL.

Seed Capital used internally to generate first stage revenue.

Development Capital used to build operations internally and to generate first stage profits vertically. Our sweet spot.

Expansion Capital is normally used to expand operations internally, buy assets, as well as entire companies or divisions externally to expand profits horizontally.


Below, you’ll find the Acquisitions – Stages & Types quiz. To progress to the next lesson you must correctly answer all of the questions that follow. If you make any mistakes, you can retake the quiz once complete.