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