Portfolio Philosophy

In order to maintain a risk-balanced portfolio, Meritas focuses on targets meeting minimum performance thresholds with positive trends over time. Meritas stays out of the way of the day-to-day. We work with management to develop a strategic plan and deliver the resources and experience necessary to execute on that plan. Meritas drives toward win-win-win scenarios, where sellers, investors, and employees share in the benefits of the transaction.

Target Criteria

  • B2B technology services preferred (examples in sidebar)
  • 5+ years operating history
  • Recurring (or highly predictable) revenue opportunities
  • $1.5M+ EBITDA
  • Historical (or the potential for) EBITDA margins in excess of 10%
  • Experienced management team committed to staying with the company
  • Ongoing owner participation when appropriate

Transaction Characteristics

Meritas focuses on successful outcomes for all stakeholders: sellers, investors, and employees. To this end, we will consider the following transaction types:

  • Private company sale / management buyouts
  • Private company recapitalizations
  • Growth equity investments
  • Corporate divestitures
  • Strategic acquisitions / industry consolidations

B2B Technology Services - Target Examples

  • Big Data / Data Science / Business Intelligence
  • CRM / ERP / Accounting and Business Management Software
  • Data Storage / Remote Backup / Disaster Recovery
  • Digital Signage / Beacons / Touchscreen
  • eCommerce / Digital Currency / NFC
  • Hardware and Infrastructure as a Service (HaaS, IaaS)
  • Hosting / Data Center / ISP / Web / Internet
  • Industrial Monitoring / Sensor Technology
  • Industry-specific Technology
  • Internet of Things (IoT)
  • Inventory Control and Management
  • IT Managed Service Provider (MSP) / IT Consulting
  • IT Security / Identity Security / Single Sign-On
  • Manufacturing Automation Technology
  • Marketing Automation / Social Media / Digital Presence
  • Software as a Service (SaaS)
  • Supply Chain and Distribution Management (SCM/DM)
  • Voice and VoIP