Issue link: http://deals.uberflip.com/i/1535917
DATA SECURITY COMPANY, SOFTWARE AND HARDWARE MANUFACTURER, ON‐SITE SERVICE PROVIDER New England US #65338 BUSINESS HIGHLIGHTS The Company has over 20 years of experience in the data storage industry, and its soluons are used in data centers, engineering labs, and manufacturing floors across the planet. With a background in protocol test and development, their data sanizaon soware and appliances are used globally by System Refurbishers, IT Asset Disposion Companies, Hospitals, Banks, Insurance Companies, and Tech Companies as well as both Data Storage and Networking OEMs. In addion to manufacturing hardware and soware in this space, the Company offers on‐site data sanizaon services for several OEMs and ITAD customers which is a key differenator from the compeon. Almost every element of its soware is completely customizable so that a user can tailor the soware to look and feel the way that works best for any use case. The Company has a porolio of scalable intellectual property and has passed ADISA product claims tesng for NIST800‐88R1 Purge (Cryptographic erasure, block erase, block overwrite), NIST800‐88R1 Clear as well as DoD 5520.22‐M. The Company has a constantly growing pool of recurring revenue in its soware license sales for all of its products. The Company's data sanizaon soluons and services are recession‐resistant offerings that are always in high demand due to the data privacy laws and regulatory requirements around the globe. Jeff Carignan Senior M&A Advisor Email: jcarignan@generaonal.com Phone: 413‐537‐3079 INVESTMENT BANK OF THE YEAR 2016 - 2017 - 2018 DISCLAIMER: All informaon contained in this document has been provided by the subject company to Generaonal Equity and while believed to be correct has not been verified. Accordingly, Generaonal Equity makes no representaons or warranes as to the accuracy and truthfulness of such informaon. The recipient hereof acknowledges that Generaonal Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Genera‐ onal Equity of this document. At all mes Generaonal Equity and/or its affiliate network members are agents for the seller and not for the buyer. Generaonal Equity's fees are paid by the seller. REVENUE / EBITDA INVESTMENT APPEAL Superior Name and Reputaon. The Company enjoys a long‐standing (25+ year) reputaon and has built considerable brand equity in its market segment. Dominant Market Share. While there are competors in the Company's direct marketplace, they are regarded as the top‐firm of its kind in the technology market. Diversified Customer Industries. The Company maintains a loyal client base within mulple industries, which helps ensure they will not be significantly impacted during a slow down within a single industry. Established Blue‐Chip Clients. The Company does business with several well established and reputable companies. It's top five customers in 2023 have tenure ranging from 6 years to 19 years. Proprietary Technology. The Company has developed highly valuable intellectual property, code, and products such as their remote erasure as a service technology and Chromebook erasure soluon, allowing the Company to make unique offerings to the market without much compeve pressure. Their soluons erase, test, and re‐image laptops, desktops, servers, Chromebooks, and network devices as well as diagnoscs and erasure of loose drives. Modest Ongoing Capital Investment Requirements. Operaons are not capital intensive and does not require a large investment in fixed assets. To support pro forma growth only modest capital investment of $10,000 is required annually, indexed for Company growth. High Return on Assets. The Company had a high unadjusted return on assets in the latest year. High Barriers‐to‐Entry. To compete in the market, new industry parcipants would require advanced technical knowledge, significant technological development, or a disrupve technology to compete at any appreciable scale, thus making entry more difficult. Generaonal Equity 125 Park Avenue , 25th Floor New York, NY 10017 SIGN NDA ► CUSTOMER RETENTION RATE 2023 85% $5.3M 2024 Revenue (PROJ) $3.2M 2024 EBITDA (PROJ) CUSTOMER MARKETS ITAD 60% Corporate 30% On‐Site Service Providers 10% REVENUE SOURCES Soware 44% Hardware 29% Service/Maintenance 27% GEOGRAPHIC MARKETS USA 90% Europe 5% Other 5% EXPERIENCED TEAM Engineering 4 Sales 2 Operaons 2 Owner (Sales/Engineering) 1 $3.5M 2023 Revenue $2.1M 2023 EBITDA KEY CUSTOMERS