SlideShare a Scribd company logo
What’s Your
Exit Strategy?
HOSTINGCON | JAD JEBARA | CEO | TUANGRU
Industry is Consolidating
Record number of M&A activity
§  High profile
§  Technology-based
§  Security-based
§  Scale-based
Exit Roadmap
1.  Decide on your path
2.  Assess where you are
3.  Kick-start the process
1. Decide on Your Path
§  Technology platform
§  Product portfolio
§  Scale
§  Niche
§  Geographic expansion
§  Talent
Why would your company get acquired?
2. Assess Where You Are
§  Know and understand your numbers
§  Compare yourself against the best
§  Form connections
Revenue & Customers
Understand
Your Revenue
§  How are you growing?
§  What is driving your
growth?
§  What needs to change?
Understand
Your Customers
§  Age
§  Profile
§  Profitability
CAPEX & EBITDA
CAPEX
§  % of Revenue
§  Maintenance vs. Growth
EBITDA
§  Margin & Flow-through
Revenue Per Employee
Admin & Legal
§  2-3 years audited financial statements
§  EBITDA and Adjusted EBITDA
§  Deferred revenue
§  Form the right connections with advisors

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State of M&A Activity in the Hosting & Cloud Industry

  • 1. What’s Your Exit Strategy? HOSTINGCON | JAD JEBARA | CEO | TUANGRU
  • 2. Industry is Consolidating Record number of M&A activity §  High profile §  Technology-based §  Security-based §  Scale-based
  • 3. Exit Roadmap 1.  Decide on your path 2.  Assess where you are 3.  Kick-start the process
  • 4. 1. Decide on Your Path §  Technology platform §  Product portfolio §  Scale §  Niche §  Geographic expansion §  Talent Why would your company get acquired?
  • 5. 2. Assess Where You Are §  Know and understand your numbers §  Compare yourself against the best §  Form connections
  • 6. Revenue & Customers Understand Your Revenue §  How are you growing? §  What is driving your growth? §  What needs to change? Understand Your Customers §  Age §  Profile §  Profitability
  • 7. CAPEX & EBITDA CAPEX §  % of Revenue §  Maintenance vs. Growth EBITDA §  Margin & Flow-through Revenue Per Employee
  • 8. Admin & Legal §  2-3 years audited financial statements §  EBITDA and Adjusted EBITDA §  Deferred revenue §  Form the right connections with advisors