Acquisitions Capital Club — a community-based digital investment fund focused on acquiring online businesses with a clear value proposition and long-term growth opportunities.
OUR APPROACH
Our goal is to acquire online businesses across a wide range of IT sectors. More generally, we seek to acquire simple, high-quality, and profitable internet growth businesses when they have underperformed against their potential. We will pay special attention to SaaS and affiliate business models. We will typically buy them from the founders who wish to exit the business entirely and move on to their next project or retire.
We’re an experienced team of operators who focus on engineering and growth. We believe our management knowledge will make us an attractive partner, coupled with our development team’s background and extensive software operation experience.
We will create value by acquiring businesses on accretive terms, and then enhancing returns by growing these operations organically through time-proven, customized acceleration programs, and various successful growth initiatives. These methods will include improved customer onboarding, increased support hours and channels, search engine optimization, new feature releases, UI improvements combined with various strategic marketing efforts, transferring best practices, optimizing IT infrastructure, and arranging financings.
Our strategy is very simple — acquire with no intention of selling, invest in growth, play the long-term game, and believe in the power of compounding.
We will choose our target acquisitions through extensive research and due diligence, dedicating extraordinary effort to one investment at a time. We will also work with industry experts and industry-leading boutique M&A and online business brokerage firms. We have a high degree of conviction that our risk will be balanced with our targeted returns.
OUR ACQUISITION CRITERIA
We expect to identify high-quality internet businesses with several of the characteristics described below. We will use these criteria and guidelines when evaluating acquisition opportunities, but we may decide to complete our initial acquisition with a target business that does not meet all of these criteria.
Simple, predictable, and free cash flow-generative. We will generally seek easy-to-understand businesses with a proven track record (two years or longer) of growth and free cash flow generation, plus predictable future financial performance.
High margins, asset-light, and simple financial statements. We will seek businesses with high profit margins and little to no debt that are able to outsource their assets.
A unique advantage. We will seek businesses that have sustainable, competitive advantages and low risks of disruption due to competition, innovation, or new entrants. These businesses will not require significant effort or a large team to operate.
Attractive valuation. We will seek businesses at an attractive valuation, relative to their long-term intrinsic value.
At least €200,000 in annual revenue. We are mainly interested in acquiring businesses with between €200K and €2M in gross revenue, the majority of which is recurring.
We will not buy complex businesses or anything that requires a lot of R&D — no physical e-commerce products, drop shipping, or Amazon FBA.
Focus areas: Digital assets, software, services, or consumable downloads only. (SaaS, apps, online courses, plug-ins, membership sites, affiliates, job boards, blogs, and more.)
THE TEAM
Our team comprises a mix of very experienced individuals, including full-stack engineers and operational experts, who specialize in management, finance, IT, and mergers and acquisitions. This will give acquired businesses an undeniable advantage in a competitive marketplace.
TEAM PICTURES
INVEST TOGETHER
The Acquisitions Capital Club investment fund will make it possible for people from all over the world to invest in unique opportunities without having to pay a bank, a broker, or any other middleman.
We believe that by pooling resources and working together, we can identify and invest in businesses with great potential. We are confident that we can generate strong returns for our investors.
Join the community of independent thinkers and invest for the first time today — or invest more if you are an existing investor.
a brief introductory call where l personally welcome you and provide any additional information you may need.
Regards,
Tomas Ciege
POTENTIAL QUESTIONS AND ANSWERS
How long should I expect to invest?
We are long-term investors and the more time we stay invested in a business, the better chance we have of capturing the compounded growth.
What type of investment returns should I expect?
We target mid-teens equity returns on an annualized basis over the entire life of the investment. We may target equity returns that are higher or lower, depending on the type of investment and amount of leverage utilized.
How often will I receive a distribution?
We intend to pay distributions at least quarterly and our target is monthly.
Why do acquisitions instead of investing in early stage companies?
Early stage companies require a lot of patience because they lose money during the start-up period. We are not spending money for the revenue; we are spending money to buy the existing revenue. (For example, a business that has €1M in revenue, may have spent €5M getting that €1M.)
What kind of multiples are these companies going for?
Three to five times EBIT, which is where we have the most interest.
Do you use any leverage?
We have revenue-based financing partners that offer up to three times EBIT, but leverage depends on every acquiring company individually.
Investing involves risk, including loss of principal. Past performance does not guarantee or indicate future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of data provided by investors or other third parties. Neither Acquisitions Capital Club nor any of its affiliates provide tax advice and do not represent in any manner that the outcomes described herein will result in any particular tax consequence. Offers to sell, or solicitations of offers to buy, any security can only be made through official offering documents that contain important information about investment objectives, risks, fees and expenses. Prospective investors should consult with a tax or legal adviser before making any investment decision.
Acquisitions Capital Club DAO
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