call us toll free:
704-449-4697

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

WHAT WE DO:

Brampton Capital's M&A Advisory group has developed expertise in advising small to mid-sized companies on the following:

Exclusive sales
Leveraged recapitalizations
Acquisition advisory
Management buyouts
Cross-border transactions
Employee Stock Ownership Plans (ESOPs)
Valuations
Fairness opinions
Share repurchases
Going-private initiatives

OVERVIEW

OVERVIEW

Brampton Capital, Inc. is a Mergers and Acquisitions advisor for small to mid-sized companies. We assist companies and management teams with strategic alternatives and capital formation issues in connection with sales and divestitures, mergers and acquisitions, recapitalizations, and management buyouts. Our dedicated M&A professionals have extensive experience across a broad range of industries with access to financial and strategic buyers.

Product Description

Brampton Capital's M&A Advisory group has developed expertise in advising small to mid-sized companies on the following:

" Exclusive sales
" Leveraged recapitalizations
" Acquisition advisory
" Management buyouts
" Cross-border transactions
" Employee Stock Ownership Plans (ESOPs)
" Valuations
" Fairness opinions
" Share repurchases
" Going-private initiatives
 
   
 
Few market sectors exist in which it is more imperative to keep up with technological advances than the Internet sector. Companies unable to keep up with these rapid changes are quickly left behind by their competition. Because it frequently costs a lot of money to invest in new technologies, companies struggling for capital sometimes allow themselves to be bought by competitors rather than try to stay in the race. This has been happening since the1990s. During the this time, AOL and CompuServe were the two largest online services. In the ensuing years, AOL was better able to respond to market whims and provide features that attracted new customers, while CompuServe's interface quickly became viewed as dated. Rather than investing the capital to try to catch up to AOL, CompuServe allowed its more popular rival to absorb it for a large fee.
The level of mergers and takeovers in the Internet sector is higher than in the broader market. The Internet sector contains a few unique characteristics that make it a more fertile environment for mergers and acquisitions, or M&A, action. The landscape in this sector changes and evolves faster than in perhaps any other market sector; as technology advances rapidly, companies must keep up with these advancements to stay relevant and competitive. Doing so almost always necessitates being well-capitalized and having the money to invest in new technologies. Newer companies that lack the capital to keep up with industry changes are frequently absorbed by larger companies in stronger financial positions. Additionally, several behemoths, such as Facebook and Google, dominate the Internet sector and enjoy capital and market share that dwarfs most of their competition. This financial advantage puts them in a great position to absorb smaller competitors.
Often an exit strategy is the original plan rather than a last resort for an Internet services company. Entrepreneurs often launch Internet startups with the hope of a future acquisition by a larger established company. The plan from the beginning is not to build an empire that can compete with the big players but simply to build it big enough to appear on their radar and attract an offer.
Merger Valuations of Internet Services Companies such as Webhosting Mergers, Collocation Mergers, Managed Services Mergers and Internet Technology or IT Services Mergers tend to fall in the 4 to 6 times cash flow range. Valuations that tend to hit the upper range of this scale and beyond, 6 to 10 times cash flow will be companies that exhibit hockey stick growth patterns over the last 24 to 36 months as well as cash flow ranges in excess of 1 million annually. Pricing for Heath care IT Mergers are common in these upper ranges if they have steep cash flow and sales growth.
Because the biggest players in the Internet sector, such as Facebook, are so much larger and better capitalized than most of their rivals, they are in a position to make acquisitions almost at will when executives deem it a good business move. Over the years, Facebook has made the pre-emptive move of purchasing several fledgling social networks, such as Instagram and WhatsApp, thereby obviating the worry they might become serious competitors in the future. In 2010, Facebook even purchased several patents related to social networking from Friendster, an early rival that had long since faded into the background.
Internet Mergers and Acquisitions: Webhosting, collocation, Website Transactions. Valuations of webhosting customers tend to vary depending on the size and mechanics of the specific asset for sale. Acquisition financing can vary from 2 to 4 times the targets cash flow or a blended rate of the buyer and seller.


Do You Have Access to Investment Advice?


If you have an interest in selling your company please contact Bill Stewart bstewart@bramptoncapital.com. We have been advising internet related firms since 1999. We also have a PE arm that has rolled up several ISP and hosting companies and sold many of them off successfully, we are one of the few Advisors out there that are active investors in the industry and put their money where our mouth is!
Some of our past clients include Idaho Power, NYSE symbol IDA. Another is Endurance International, Nasdaq symbol EIGI.
Internet Mergers and Acquisitions: Webhosting, collocation, Website Transactions. Valuations of webhosting customers tend to vary depending on the size and mechanics of the specific asset for sale. Acquisition financing can vary from 2 to 4 times the targets cash flow or a blended rate of the buyer and seller.

» Business Phone Systems :: Hosted PBX
© brampton capital 2009