What kind of businesses does Basis Vectors acquire?

We acquire Vertical SaaS business with $1M to $10M of revenue and demonstrated product/ market fit. We prefer companies driven by founders. We look for opportunity to dramatically improve the growth through investment and our operating capabilities.

How do businesses gain from Basis Vectors advantage?

We provide proven capabilies around cost optimizations and growth. This allows capital starved business to become profitable and also jump start a higher growth trajectory.

How does Basis Vectors evaluate a business?

Basis Vectors is focused on acquiring vertical SaaS companies with compelling products and strong customer relationships that meet the following criteria:

• Company: Vertical SaaS software. Founder Driven. 5+ Years
• Revenue, $1M-$10M. Flat or growing
• Churn: 80% + annual revenue retention
• EBITDA: break-even or loss-making up to – 50%

What is Basis Vectors’ Selection Process?

Basis Vectors is focused on acquiring vertical SaaS companies with compelling products and strong customer relationships that meet the following criteria:

• Highly Selective: There are 10,000+ potential vertical SaaS targets. We have very specific criteria to prioritize the targets that best fit our unique model.
• Disciplined Approach: Our team is experienced at performing diligence, performing valuation, and structuring and executing acquisitions.
• Attractive Deal Structure: Our deal structure provides sellers with a mix of l cash, equity and notes, aligning for a long term internet and partnership.

What is your typical timeline for closing a deal?

Typically, we would issue LOI, close full terms and transaction within 10, 30 and 45 days respectively. Our aim is to agree upon a clear plan to alleviate operational pressure over the Founders, cash them out pro rata, and utilize maximum new cash to drive company transformation.

What information do you require?

We have a straightforward evaluation process based on standard data.

For Initial Valuation and Indication of Interest

• Corporate website and Information Memorandum (if any)
  1. Product or service listing/description, with pricing strategy for each
• Quarterly financial statements (audited, if available) for the past 12 quarters, including income statement and current balance sheet
  1. Please include detail on revenue mix (subscription vs. license vs. maintenance, software vs. services, recurring vs. resold, product line breakdown, etc.)
  2. Please include detail on the composition of COGS
• Customer information
  1. Revenue by customer by product/service line for the past 12 quarters (anonymous is fine)
  2. Detail on recurring MRR churn and/or net economic retention rates, with the underlying data
• Employee roster with function, division, geography, tenure, and salary
• Organization chart with divisions and divisional leads (where applicable)
• Summary of lease obligations, by location, showing monthly financial obligation and termination date

Additional Items Required for Final Valuation and Letter of Intent

• Management call with key executives
• Existing & current management, product and/or sales presentations
• Current year tax return (or previous year if current is not available)
• Listing of deferred revenue detail, specifically calling out any long-term prepaid revenue (i.e. beyond 12-months)
• 3-year recurring revenue retention detail
• Summary of severance policy including any specific contracts with key employees
• Listing of any other potential liability not accrued on the balance sheet with termination dates and financial obligation
• Listing of U.S. Patents (issued or pending), including any granted patent licenses