Nextelligence M&A&I -- Business Development & Management

Nextelligence Mergers & Acquisitions & Interim Management

'Invest in what you know" -- Peter Lynch

Nextelligence invests in technology, communications, and online opportunities. We invest in ideas. We invest in people. As a company with a talented team of developers, designers, and thinkers, we think that we can invest in what we know while staying current with the most innovative companies, products, and opportunities in the marketplace today. We provide many different types of assistance for the companies in which we invest.

Because we invest in what we know, we are able to provide critical coverage for companies that have a knowledge or experience gap that they need filled to take their product to the next level. We are also able to play a strategic role in lending financial support and providing high-level management resources to our clients.

Nextelligence takes a "managed entrepreneurship” approach with each acquisition: after the growth strategy is worked out with the company, we work together to improve its day to day operations. Nextelligence sets a goal for all of our acquisitions and clients to significantly improve their value in 12 months or fewer, and the “M&A&I” approach guides Nextelligence and our clients to that goal.

M&A&I Criteria

Focus

Internet software, Communications, Entertainment

Size

$1M - $50M

Transaction Type

Acquisition, Restructure, Public Offering, Start-ups

Geographic Location

Worldwide

Markets

Nextelligence considers all types and stages of companies. From start up to late-stage companies in any number of different technologically-inclined industries, we have sufficient contacts in the financial community to assist in financing needs for companies in all stages.

Structure

Preferred Stock, Warrants, Debt Instruments.

Key Criteria

Clear business strategy, market opportunity, capabilities of the management team, niche or strong competitive edge.

The Targets

The tech sector is a dynamic, ever- changing environment that is rich in diversity and opportunity. Tech is fueled by innovation, and it can be hard to see where the market is moving. Nextelligence has a proven track record of looking ahead, anticipating needs, and taking advantage of them.

We are always on the lookout for opportunities to partner with and assist companies that are at the boundaries of innovation in Internet technology, and we place high emphasis on opportunities accompanied with well-considered business models that will stand the test of time.

The Commitment

Nextelligence does not necessarily have a pre-defined exit strategy in mind when we acquire a company or take on a new client. We focus on an entry strategy, how we can provide critical support and nurture long-term commitment.

Nextelligence understands the employee skill sets and customer relationships and partner companies have already established have high value and should be treated with careful consideration. We focus on supporting and growing a company's value through directed purpose and careful maintenance, not slash and burn reorganization tactics.

The Approach

Any new market opportunity is like the gold rush in California. There are three types of entrepreneurs in that environment: the prospectors, who take big risks for big rewards; the latecomers, who wait too long to move into the new market because they are overly cautious and take big risks for low rewards; and the smart guys, the ones who provide the prospectors and the latecomers with the tools that they need to try and succeed. Smart guys take low risks for big rewards.

Selling the tools that the risk-takers need to make their gamble is called the “pick and shovel” approach. This is named after the general store owners who sold the picks and shovels to prospectors and latecomers alike in the gold rush and frequently got much wealthier than the prospectors themselves did. Nextelligence looks for businesses that are serve other companies or consumers in prime growth markets, businesses selling picks and shovels, for acquisition and partnership opportunities. Positioning a company as a pick and shovel provider allows it to make money off of the large number of interested prospects in a low-risk, high yield environment.