INTERNET INVESTORS GROUP brings together investors and partners to buy, improve, and sell established profitable Internet businesses.
We buy online businesses and our partners & investors in the acquired business work together to improve the business and later sell the business at a profit.
WHO WE ARE
Since 2007, our founder has provided mergers & acquisitions (M&A) advisory and brokerage services to web-based businesses. He serves private and corporate investors looking to invest in, acquire, and sell web-based businesses.
A few case studies are presented here.
OUR CURRENT MANDATE
– Create a privately-held capital pool company to bring together investors in Greater Toronto Area to buy & improve an established profitable recurring-revenue web-based business; and
Sell the business within 3 to 5 years for an Investor Internal Rate of Return of 25%.
– We are currently searching for a target business. The target will need to be approved by investors.
– We are now securing non-binding Investor Equity Commitment Letters from investors by delivering a tentative Investor Term Sheet to each investor. The Term Sheet outlines the probable investment terms. These terms will be confirmed when the acquisition target is approved.
– We prefer local investors in GTA whom we can meet with face to face.
*Web-based business is a business that generates all its revenues through e-commerce or online advertising.
– Each investor will analyze and approve a target business prior to investing.
– Each investor will receive preferred shares in the capital pool company in proportion to his investment in the business that is acquired.
For example, assume the investor group approves the acquisition of a business for $10,000,000. An investor who invests $1,000,000 will receive a 10% voting stake in the acquired business.
– Each investor will receive regular financial statements related to the business.
*Tentative Term Sheet will be delivered to each investor.
RETURN ON INVESTMENT
We buy and “formalize” the business. This includes setting up a formal organizational structure (board of directors, officers, investor relations, employees, operations processes, etc.) to improve the business and increase its value.
When the business is sold, each investor will receive their proportional share of the proceeds. The goal is to sell the business within 3 to 5 years for an Investor Internal Rate of Return of 25%.
– We seek established profitable web-based businesses that fit these criteria:
- Over 5 years old
- Produce a minimum of $1,000,000 in Annual Revenues
- Priced up to $10 million
- Operate in a growing sector
- Have a good team
– We prefer web-based businesses that sell high-margin intangible proprietary products online via a recurring-revenue subscription model. But we will consider all opportunities.
– We prefer recurring-revenue businesses for their predictable recurring cash flow.
WHAT WE ARE NOT
We are not an investment fund. We are not money managers. We are business owner-operators who will actively manage the business we acquire.
We do not invest in startups.
Contact Us to sell your business or invest with us.