Search Characteristics
Business Types
B2B SaaS
B2B Services
and
B2B Distribution
Geography
Nationwide Search
Industry
Industry
Hospitality
and
Adjacent Sectors
Additional Sectors in
Consideration:
Private Label Packaging providers
eDiscovery Software
CRM Providers
Industry Thesis
Example Acquisitions: B2B SaaS
The Cypress Green Global Group is exclusively focused on acquiring a high-quality company that has a motivated seller and the potential to achieve significant growth. Although, the Cypress Green Global Group’s initial search strategy will focus on acquiring B2B SaaS and Services businesses in the Smart Hospitality Industry, which is where the Managing Partner has a competitive advantage, the team will not limit their search exclusively to this industry.
Smart hospitality integrates technology solutions across the hospitality ecosystem, touching every aspect from security, and procurement to travel management. These solutions help businesses within and adjacent to the hospitality industry streamline operations. This highly fragmented industry offers a compelling combination of defensibility, antifragility, and significant growth potential.
1) Payment Gateway
2) eProcurement Solutions
3) Operations Management System
4) Revenue Management Software
5) Integrated Security Systems
6) Property Management System
Example Acquisitions: B2B Services
1) Manufacturer of Hospitality Products
2) Distributor of Hospitality Products
3) Tableware, Amenities & Hygiene Supplier
Industry Thesis
1
gROWING GROUP DEMAND
Group travel, encompassing conferences, conventions, events and more, will experience a strong resurgence in the hospitality industry
IS POISED TO OUTPERFORM THE BROADER ECONOMY FOR THREE KEY REASONS
TRavel, Leisure, Hospitality
Sector
2
tECHNOLOGY ADOPTION
Companies are leveraging Technology for Efficiency and Data Analytics across the TLH economy and this technological adoption is advantageous to a new CEO
3
international inbound
International travel will also increase, offsetting the modest erosion in domestic leisure demand that is expected to continue in 2024 and beyond
Industry Thesis
MACRO trends that must be true for Acquisition
Moderately Stable Economic Environment
The hospitality industry depends on a stable environment with little volatility in order to successfully operate
Digital Transformation
Technological shifts and adapting consumer sentiment give a new CEO great latitude to grow and scale a technology deficient operation
Interconnected Operability
Continued partnership of services with event organizers, medical camps and companies in other sectors to expand customer acquisition
Company Scorecard
Category | % | 5 (Proceed with outreach) | 3 (Test with broker deal flow) | 1 (Do Not Proceed) |
Business Size | 10% | Greater than or equal to $10mm | Between $5mm and $10mm | Less than $3mm |
EBIDTA Margins | 20% | Greater than 25% | Greater than 15% | Below 15% |
Customer Concentration | 10% | Company has power | Power parity | Customers have power |
Supplier Strength | 10% | Company has power | Power parity | Suppliers have power |
Competitive Intensity | 20% | Highly Fragmented | 3-5 major companies | Formidable competition |
Operational Complexity | 10% | One sentence explanation | Moderate explanation | Requires advanced degree |
Industry Growth Potential | 20% | Growth opportunities in current industry & adjacencies | Growth opportunities in adjacencies only | No growth potential |
Search Strategy
MACRO
MESO
MICRO
My search strategy involves targeting 36,000 companies over the course of 24 months
My networking strategy involves attending 7-10 events and/or conferences monthly
My outreach strategy entails 375 emails and 75 calls weekly
Intern Program
Undergraduate
Analyst
Deal Team
- Research industries and finding sectors that match Managing Partner’s interest
- Evaluating CIMs and marketing materials against scorecard
Event Team
- Attend events and conferences with Managing Partner collecting & collating contact information and leads
MBA Associate
Deal Team
- Synthesizing detailed due diligence of potential acquisitions
- Evaluating CIMs and marketing materials
- Manage firm’s internal new deal review process including deal summaries
- Collating notes from owner calls with potential to lead owner calls when deal flow is high
- Oversee work of Undergraduate interns on both deal team
Weekly Time Allocation
Number of Each Activity
188
187
75
15
75
15
75
15
75
15
75
15
Calls
Secondary outreach to high tier prospects
Email
Initial outreach to high and low tier prospects
Follow-Up
Reconnecting with high and low tier prospects in pipeline
Low-Tier : No Response
High-Tier : > 1 response
Managing Partner Draw | $160,000 (yearly) | Managing Partner Salary |
Taxes & Healthcare Benefits | $25,000 (yearly) | Fund Taxes & Health Benefits |
Travel | $20,000 (yearly) | Prospecting Compannies |
Attorney & Diligence | $30,000 (yearly) | Professional services for diligence |
Startup & Infrastructure Costs | $20,000 (yearly) | LLC incorporation, websites expenses, techstack |
Support Costs & Miscellaneous | $20,000 (yearly) | Contract work & buffer for unforseen expenses |
TOTAL | $275,000 (x 2) |
Raising $550,000 through the sale of eleven (11) units priced at $50,000
Fundraising Requirements
Let’s Partner for Success