Thursday, 1 February 2018

S-2955-1 KRS A Scalable Insurance Technology Business in the FinTech/Insurtech Space Seeks Strategic Partner (UK)

Business Description: The company was established 6 years ago by a very well experienced management team.  Since that time they have invested in developing a unique product that is now being taken up by some major players.  This software as service product reduces risk and thus enables clients to reduce claims and increases profitability. The business model is based on regular monthly fees rather than one off sales and is infinitely scalable so leading to an ever-growing legacy income whilst also continuing to grow the book.  Potential clients include many household names worldwide and at present there is virtually no competitor.  The management believe that now is the time to roll out the product as rapidly as possible and are seeking a strategic investor to work alongside the founders to drive the business forward.  All trials and pilot schemes to date have gone well. Investment will be used within the company to continue to develop the product and markets and to hire a number of key staff to ensure that growth is both rapid and well controlled.

Distribution: The business is UK based but the market is worldwide.  The investor can be either financial or strategic and located anywhere but a strategic partner that already has a presence in the US would maximize the leverage opportunities to both parties.

Operational Strengths: Whilst the company has as yet to make a profit, a combination of the strength of the management team, the uniqueness of the product, and the infinite scalability of the company, together with the ongoing discussions with future clients give the management confidence that the forecasts showing an exponential increase in profitability are indeed very conservative.

The Transaction: The Founders are looking for a strategic investor to provide expansion capital in exchange for a 25% stake in the business which is set for rapid expansion.  The investment can be injected in stage payments upon the achievement of pre-agreed milestones.  Ideally the strategic partner can leverage the company’s proprietary product to improve its own profitability and to access wider geographic markets for both parties.

Financial Summary USD (vs. £ @ 1.30)

2019 Seller Forecast
2018 Seller Forecast
2017 Seller Forecast
 8 Months to December 2015
Adjusted EBITDA
3,009,500 Loss
595,400    Loss

Other Highlights
Management Team in Place
Years in Business
SIC Classification

Direct All Inquiries to:

                                                       Gottesman Company
Refer to:  S-2955-1 KRS
Tel: 212-330-8010     Fax: 646-434-4557