Confidential. Copyright by Toolbox OS Inc. All rights reserved.
- PRESENTATION CONTENTS -
Technology. Accelerated.
Confidential. Copyright by Toolbox OS Inc. All rights reserved.
- PRESENTATION CONTENTS -
Technology. Accelerated.
1
INTRO
WE
SAASIFY
STUFF
WE ARE SOFTWARE
BEHIND
TECH-ENABLED BRANDS
WE PARTNER WITH COMPANIES
TO ADD TECHNOLOGY
OUR MISSION:
UPGRADE THE VALUE
OF OUR PARTNER’S
BUSINESSES VIA TECH
SOFTWARE
PRODUCTS
TO SELL/GIVE
(↑REVENUE)
OVERHEAD
OR OPEX
REDUCTION
(↑EBITDA)
IN-HOUSE
PROPRIETARY
TECHNOLOGY
(↑VALUATION)
HOW WE INCREASE
ENTERPRISE
VALUE
2
LEVER #1:
REVENUE
REVENUE
WE ALLOW BRANDS TO ADD SOFTWARE TO THEIR PRODUCTS AND SERVICES
Goodwill:
Organizations offering our tech as a form of goodwill use a (similar to revenue) approach but offer the tech gratis.
SALES LEADS: THE SOURCE LAYER
(ALL THE WEBSITES THAT CREATE LEADS)
LEAD WAREHOUSE & ROUTING SYSTEM
(SUPPLY)
NETWORK OF LOCAL AGENCIES
(DEMAND)
AGENCY
AGENCY
AGENCY
AGENCY
AGENCY
STAFF QUALIFYING
STAFF ON-BOARDING
STAFF CONTRACTING
STAFF LICENSING
JOB-RELATED TOOLS
JOB-RELATED MATERIALS
JOB-RELATED SOFTWARE
DEPARTMENT CRM
STAFF CERTIFICATIONS
STAFF RECRUITING
PEOPLE TECH
DIALER / PHONE SYSTEM
OPERATIONAL TECH
OPTIMIZATION TECH
FINANCIAL METRICS
SALES ANALYTICS
MARKETING ANALYTICS
CALL CENTER METRICS
COMPLIANCE & QA
COMMISSIONS
NEW HIRE PAPERWORK
TRAINING
JOB-RELATED CE
WHAT TECHNOLOGY DO YOUR CLIENTS OR CONSTITUENTS NEED?
EMAIL, CHAT & SMS
G to do this
SOLUTIONS ENABLED BY ARTIFICIAL INTELLIGENCE
FOR GAMIFICATION AND BETTER USER EXPERIENCE
Recruiting, hiring, training, onboarding, turnover, client onboarding, visibility, financial KPIs
Leads, marketing planning/projects & reporting
INCREASES MARGIN
$$$$$$$$$$$$$$$$
A Unitedhealthcare Company:
ENTERPRISE CASE STUDY
Billed over $1.5M in Q4 across ~1,000 users
(As a franchisor…)
3
LEVER #2:
EBITDA
Toolbox Helps Companies Get More Out Of Their Greatest Asset… Their People
2 MINUTES TO
CREATE A PIE CHART
$200,000 - FIGHTING FIRES
$200,000 - MARKETING
$200,000 - EXEC MEETINGS
$200,000 - SALES MEETINGS
$200,000 - PLANNING
$1,000,000 - PAY
PEOPLE STATEMENT
LEADERS
MANAGERS
WORKERS
INCOME STATEMENT
GROSS REVENUE
COST OF GOODS
GROSS PROFIT
EXPENSES (people)
NET PROFIT
PEOPLE STATEMENT
PAST MARKETING & SALES PROJECTS
(As a franchisor…)
PAST HUMAN CAPITAL PROJECTS
(As a franchisor…)
PAST OPERATIONAL PROJECTS
(As a franchisor…)
PAST FINANCE & REPORTING PROJECTS
(As a franchisor…)
EATING OUR OWN DOG FOOD
$400K Isn’t Too Much
“Our software was invented when G Leavitt spent $400K to develop his own custom operating system. It added $600K in net profit, generating ROI in year 1 and generated 9 years of those profits until exit. To date, over $7M has been invested in our technology. $400K was a bargain and a life-changing decision.”
CASE STUDY
(As a franchisor…)
NEW INDUSTRY TOOLS
Traded $60K for $250K:
A gentleman wanted to make a CRM for his industry. We got him a complete project and contributed $250K in I.P. for $60K out of pocket for him.
The punchline is that when you work with us, you don’t pay retail rate for building software and we can contribute intellectual property at a fraction of what it costed us to develop it. We become a major differentiator in trying to get a project done successfully.
CASE STUDY
(As a franchisor…)
PRODUCT USER & INVESTOR
Sharna
“The simplicity of Toolbox frees up my time to improve and grow our business. I've been able to create consistency with each location that I could only dream of before...
We quickly grew to from 7 to 9 locations where we reached a roadblock. With Toolbox, we have reached 12 and I now see real potential to expand our business to 25 or 50 locations in the future.”
SMALL BUSINESS CASE STUDY
(As a franchisor…)
4
LEVER #3:
VALUATION
Of the transactions announced last year,
15%, were acquisitions of tech companies (more than any other sector).
682 tech companies were purchased by companies in an industry other than tech, while 655 were acquired by tech companies.
*according to data compiled by Thomson Reuters.
↑ BOOMERS
Aging Baby Boomers w/ No Business Heir
↓ DIFFERENTIATION
Firms Struggling To Create Differentiation
↑ STRATEGIC M&A
Picky And Strategic Buyers About Alignment
↓ MARGINS
People-Driven Models Leaving Tight Margins
↑ TECH BUYS
Value-Added Tech Companies Folded-In
↓ VALUATIONS
Tech Reducing Traditional Firm Value
This window in time is only leverageable via technology - our most potent weapon
A UNIQUE ‘WINDOW IN TIME’
HOW A.I. & TECH IS CHANGING BUSINESS
↑ EXITS
The Exit-Motivated Players Increasing
↓ GROWTH
Most Need To Do More With Less Right Now
Premise:
Our average client/partner is valued 3-10X EBITDA. Our thesis is to double EBITDA and/or enterprise value in 6 months.
If we cannot double EBITDA for some reason, we can increase enterprise value by adding technology (multiple increase).
Brand Promise:
We will 2x the value of your company in the first year.
Qualtrics (qualtrics.com) just sold their SaaS company for $8 Billion to SAP, the international software giant. Qualtrics achieved about $400M in revenue in 2018 (reportedly) but sold for $8B, achieving an ambitious 20X+ revenue.
SaaS Company
Recently Sold
(Over 20X Revenue)
CINC is a powerful real estate platform that keeps you seamlessly engaged with your clients from Hello to Congratulations. Along with best practices, CINC allows you to stay top of mind throughout the home buying process.
SaaS Company
Recently Sold
(19X Revenue)
(In tech-enabled services) “The Transaction Processing sector is trading at an all-time high EV/EBITDA multiple of 18.6x followed closely by Info Services, which witnessed a spike at
17.4x during Q2 2018.”
https://solganick.com/solganick-co-it-services-and-tech-enabled-services-ma-update-ytd-2018/
Tech-Enabled Service Multiples
5
THE
LICENSEE
Level 10: Space A.I.
Level 9: Neuro A.I.
Level 8: Optical A.I.
Level 7: Language A.I.
Level 6: Robot A.I.
Level 5: Peopleless Tech
Level 4: Data Tech
Level 3: Process Tech
Level 2: Paperless Tech
Level 1: Communication Tech
TECH ESCALATION LADDER
WHAT IS YOUR LEVEL OF TECHNOLOGY UNDERSTANDING?
The levels of understanding of technology is unprecedented - disruption is on the horizon as millenial and gen z leaders take over main street businesses in a variety of sectors.
BOOMERS
MILLENNIALS
GEN Z
THIS WILL BE THE GREATEST TRANSFER OF WEALTH AND THE BEST ERA FOR M&A
G to do this
MULTI-LEVEL
OR
MULTI-LOCATION
BRANDS ARE BEST
#1 - Potential
4-PART CLUB MEMBER APPLICATION & VETTING PROCESS
#3 - Culture
#2 - Leader
#4 - Team
REVENUE, EBITDA, AND OTHER QUALIFICATIONS VARY
-INSURANCE SAAS-
Over 30 tools and people who have a competency in tech integrations
-INSURANCE M&A-
The plan outlined is a model to acquire value in a roll-up
-INSURANCE AGENCY-
Over 50 years experience running insurance agencies in one team
#1
#2
#3
LICENSEE SPOTLIGHT:
Insurance Roll-Up
Deal Summary
#1: FRESH C CORP
#2: ASSETS CONVEYED IN
#3: $5M PPM @$40M (PRE)
#4: 38% EQUITY FOR TOOLBOX
#5: $2B EXIT PLAN
-MSP SAAS-
Over 30 tools and people who have a competency in tech integrations
-IT SERVICES M&A-
The plan outlined is a model to acquire value in a roll-up
-MSP & CYBER SERVICES-
Over 10 years experience running and lots of experience in tech
#1
#2
#3
LICENSEE SPOTLIGHT:
IT Services Roll-Up
Deal Summary
#1: MOST PROFITABLE MSP
#2: ROLL UP OF IT SERVICES / CYBER
#3: REVERSE MERGER / PUBLIC SOON
#4: OVER 20% EQUITY FOR TOOLBOX
#5: $2B EXIT PLAN
6
SUMMARY
IN COMPETITION with REV by Toolbox...
Feature | Leads | H.R. & People | Marketing & Sales | Accounting & Reports | Toolbox™ |
Sales Leads at Scale | ✓ | | | | ✓ |
Human Capital Management | | ✓ | | | ✓ |
Marketing Infrastructure | | | ✓ | | ✓ |
Selling Automation & Measurement | | | ✓ | | ✓ |
Operational Automation | | | | ✓ | ✓ |
Automated Accounting & Finance | | | | ✓ | ✓ |
Plays With All Other Software | | | | | ✓ |
Added To Balance Sheet | | | | | ✓ |
G to do this
Anthony Armstrong, co-head of technology M&A at Morgan Stanley said, “It’s better to acquire disruptive technology than to be disrupted by that technology.”
MULTIPLE CLUB: MULTIPLE BASICS
Premise:
Our average client/partner is valued 3-10X EBITDA. Our thesis is to triple revenue, EBITDA and valuation multiple.
Promise:
We will 2x the value of your company in the first year of your club membership.
AN EXAMPLE COST-BENEFIT ANALYSIS
You don’t need a software developer to get
this done, you need a software company.
It takes: support, billing, marketing, sales, front-end & back-end developers, devops, servers, creative, and UI/UX experts.
G to do this
#1
ONE-TIME
FEES
#2
MONTHLY
ROYALTIES
#3
EQUITY
STAKE
THE (3)
WAYS
PARTNERS
PAY US
G to do this
DEAL POINTS
TO DISCUSS
#1: ONE-TIME FEE
#2: SERVICES FEES
#3: EQUITY / CARRY
#4: RESTRICTIONS
#5: EXCLUSIVITY
WE ARE SEEKING
INDUSTRY CHANGERS…
WHO KNOW TECH CAN MAKE A DIFFERENCE
(ANY INDUSTRY)
INQUIRE ABOUT A PARTNERSHIP W/ US
Confidential. Copyright by Toolbox OS Inc. All rights reserved.
- PRESENTATION CONTENTS -
Technology. Accelerated.