Tag: business broker orlando florida

07- Dec2018
Posted By: YCSuperGal
1412 Views

Dec 2018 Newsletter

As we near the end of 2018 (my, my what a year this has been), we would like to provide a brief overview of a few of the exciting partner companies in our portfolio (in no particular order). As you can see, we are industry agnostic so our portfolio ranges from the highest of high-tech to a delicious line of Rum. We have additional companies in our portfolio as well as multiple businesses for sale that we will cover in future newsletters.We are very fortunate and grateful that a boutique firm like NewGate Capital is able to attract such quality deals.


locator x company logo

LocatorX plans to disrupt the $27 Billion GPS location services market through their partnership with Oxford University which provides exclusive rights to the University developed Solid-state Miniature Atomic Clock. Once scaled, the patented Global Resource Locator will enable real-time tracking of any asset – both indoors and outdoors – at a low per-unit cost, without the need of installing expensive beacon systems.

As the Internet of Things (IoT) continues its rapid growth, the Global Resource Locator will seamlessly integrate into any device or product to enable accurate and timely location tracking.  While the Global Resource Locator is being developed for mass production, LocatorX is creating a suite of products to improve product and tracking information which will commercialize the back-end functionality of the final product and generate near term revenue.


threatlocker
ThreatLocker has developed an application whitelisting solution that allows businesses to control exactly what is running on their systems while giving them complete visibility. The ThreatLocker solution stops users from running unknown applications (i.e. viruses, malware) without explicit permission from the I.T. department. This results in the virtual elimination of malware and cyber breaches. Unlike traditional whitelisting solutions, ThreatLocker is easy to deploy, requires little management, and easy to permit new software when it is needed. ThreatLocker is fully developed and is in the market with customers and revenue.


A passion for Caribbean culture, coffee and rum. RumJava is a line of artisan crafted rums (4 dark rums and 2 rum creams) distilled in Florida from Florida cane and other natural ingredients. The rums, infused with five Java’Mon Coffee blends, are positioned in the growing flavored rum category and they compete with premium sipping rums. RumJava was awarded 3 Gold Medals at the Miami RumFest and was the highest selling rum at Miami RumFest, UK RumFest and the London Spirits Show. Created in 2017, RumJava has sold 24,000 bottles in 8 states, the UK and the Virgin Islands and is increasingly cashflow positive.

 


secureair

SecureAire has developed and commercialized today’s most advanced air purification systems to combat the growing problem of indoor air quality. SecureAire’s patented Particle Control Technology is able to filter out critical contaminants including viruses, bacteria, mold, VOCs and dissolved gasses (CO2). SecureAire technology has been proven through several supervised pilot projects in hospitals and commercial buildings.  SecureAire is currently manufacturing and selling units for commercial and residential applications.


SuperCooler Technology

SuperCooler Technologies focuses on precision refrigeration and beverage supercooling. They hold numerous patents for chilling, storing and serving beverages. SuperCooler’s flagship product keeps liquids just below their freezing point to offer a perfectly cooled beverage with an instant slush.  A version of this product is being offered in partnership with Coca-Cola branded as Artic Coke. Two of the first Artic Coke Supercoolers in Florida have been placed in Disney Springs at the Coca-Cola Store.


Rentivity is developing the first end-to-end digital marketplace for single-family rentals. A highly automated single point of entry SaaS platform integrates all users, streamlining the entire asset lifecycle. Originated from experience, Rentivity is designed to scale while mitigating risks, improving rents, reducing vacant time on market, and controlling costs.  The Rentivity platform is fully developed, has completed testing, a pilot launch and will be fully released with live customers before year’s end.


GeoToll

GeoToll has created a mobile phone app that replaces the window stickers and other devices used for electronic toll collection. Not only easier to use than SunPass, EZ-Pass, Peach Pass, and all the other toll passes but your one GeoToll app can handle them all. GeoToll has you covered whether you are driving locally, cross country or in a rental car.

GeoToll technology has been proven through multiple pilot tests and is now entering two go-to-market launches in California. The Bay Area Toll Authority (BATA) and the LA County Metropolitan Transportation have awarded GeoToll exclusive contracts and have committed over $350k to proving customer acceptance and operational benefits.


We want to wish each and everyone of you a wonderful Holiday and a very prosperous New Year.

15- May2018
Posted By: Joe Alvarez
1384 Views

May 2018 Newsletter

Early last month, there was a good piece in the Orlando Business Journal about the recent M&A activity in Central Florida and the complexities that go into those types of transactions.

More insightful, though, than the various structures and unique terms a given deal may include was the psychological toll that the sale of a business can take on its owners — especially when those folks are the people (or are related to the people) who started the business.For many business owners, their identity, time, and much of their wealth and livelihood is tied up in their business.

TheConway Center for Family Business estimates that the average lifespan of a family-owned business is 24 years. For most of us, that represents roughly a third of our lifetime. So it’s no wonder that the idea of transitioning out of it comes with a boatload of stress. From worrying about your beloved employees to you and your family’s financial and personal future, there’s a lot of emotion involved.

It doesn’t help matters that the due diligence process is often arduous and chalk-full of scrutiny. So why go through the process at all? Why not pass it on to the next generation? Well, according to Bloomberg Business Week only 40% of U.S. family-owned businesses are passed on to the second generation. For third-generation, it’s a meager 13% — and those numbers are trending down. Meanwhile, the number of folks reaching retirement is at an all-time high. The U.S. Census Bureau reports that 10,000 baby boomers retire every day; many of them are business owners.

So, if the most common method of business-succession of the past is trending down while more owners than ever are looking to move towards retirement, what gives? Private Equity and strategic competitors seeking consolidation are becoming the new norms for business owners looking to move on to the next chapter of their lives. One stark proof point: deal activity in U.S.

Private Equity hit new highs in 2017 in both deal count and deal value, and Pitch Book believes a new record could be hit in 2018. Due to low-interest rates and an influx of money into PE funds, there’s more capital than ever that needs to be put to work. How does that affect business owners? Higher valuations! Monetarily, it’s one of the best times ever to be the captain of a profitable private business with your eyes on the exit door.

That doesn’t erase the fact that the sale process comes with the aforementioned challenges. But like all great outcomes, the obstacles are there to be overcome and if you’re working with an experienced team of advisors, it can make the journey much more palatable (and profitable).

 

If you or anyone you know is considering raising growth capital or selling/buying a business, please let us know. We’d love to chat.

 


Portfolio company that just closed out its seed round

Rentivity.com

Rentivity, a Florida based real estate technology company, successfully completed a fundraising round with NewGate Capital Partners of an undisclosed amount. Rentivity is launching the first end-to-end digital marketplace for single-family home rentals. Their solution integrates and supports all users (owners, landlords, property managers, tenants, vendors, etc.) in a single, mobile friendly, platform. Rentivity will save time and money for both renters and property owners while providing detailed reporting and a digital audit trail of all transactions.

 

You can visit them and stay up-to-date on their full market launch atrentivity.com.

 


Machine-Part Manufacturing Company for Sale

 

Image result for Machine-Part Manufacturing

 

NewGate Capital Partners has recently listed for sale a manufacturing company that is focused on producing machine parts for envelope, plastic bag, and notebook manufacturers. The Company was founded in 2005 and currently employs 11 people.

It is headquartered outside of Pittsburgh, Pennsylvania in a 10,000 square foot facility and mostly serves clients throughout Pennsylvania. Their niche-focus is a competitive advantage that has resulted in year-over-year sales growth of 13%. They finished the 2017 calendar year with just over $2 million in sales and an adjusted EBITDA of $600k and are expecting similar or better results for 2018.

 

The owner is currently looking to retire but has management in place that can take over post-transition.

The sale of the business includes the land and manufacturing facility.

 


 

 

 

07- Nov2016
Posted By: Joe Alvarez
551 Views

Here?s the latest from FreshSurety Inc. 11/7/2016

FreshSurety utilizes cutting edge wireless sensing technology to reduce waste and improve fresh produce quality throughout the supply chain. We report the location, environment, and shelf life of individual fresh food cases for a few cents per case. As a result, our technology predicts the true quality of the product that conventional quality control methods miss to assure higher quality and better retail margins.

freshsurety-beta-program-summary-10-18-2017

04- Sep2015
Posted By: Joe Alvarez
336 Views

Business ownership: A Going Concern or Start from Scratch ?

Previously we were discussing, not whether to go into business, but the decision of which method made sense for you. A chicken or egg scenario. Do you start from scratch with just an egg? An idea that has yet to hatch but holds great promise or do you purchase some chickens, a going concern that is producing revenue and , hopefully, income.

Under the egg method you must have time. Time to weather the delays of a startup; the lack of customers, employees, revenues and spendable income. In fact the reality is you will most likely go deeper in the debt hole having no personal income for many months if not years. Do you have that kind of staying power (reserves)? Investors, if you can find any, will not allow you to spend their money on your living cost. So for sake of analysis let?s examine which is better, the chicken or the egg.

Your egg has a cost obviously much less than buying a group of chickens. But it does not produce current income. Let?s say you have spent $50k on your egg (idea) so far. Even when it hatches you?ll have to build up your ?coup? of chickens letting other eggs hatch not taking income while this process build. You now have another $200k sunk into your business and / or debt from living expenses.

At $250k you could have bought a chicken farm, a revenue producing enterprise. You?d have debt but also income. You?d be buying a proven business because you did your due diligence and know the stream of revenue the business has been producing. You might have to spend a few dollars for sprucing up the business; perhaps a new marketing campaign but you have INCOME!

But my egg is a fantastic idea. Could be, I hope so. BUT 75% of all new businesses fail by or before year 3 and 85% by year 5. Risky?? You bet! Still want to be in business? Good. We?ll discuss alternative ways to make that happen while lowering the risk next.

Steve Ivey

15- Jul2015
Posted By: Joe Alvarez
294 Views

So You Want to be in Business, Be an Owner, Master of your Own Destiny?

I love the way my partner, Steve, goes about explaining this.

 

Chicken or the Egg

So you want to be in business, be an owner, master of your own destiny?

The age old question in the title might be worth thinking about. Should you do a start-up with an egg or should you buy some chickens? A silly analogy? ?Maybe not.

Many people dream of starting a venture. I?ve helped several hundred wanna- be- entrepreneurs work through this process. Many come in with the egg in hand, delicate, carefully guarded and full of promise. Perhaps they?ve decorated the egg to make it look more attractive and more advanced than other eggs. Convinced that their egg is unique yet they really aren?t quite sure what it will be when it hatches. ?They rarely consider that it may not hatch at all. After a time of incubation where you?ve kept it warm and looked at it all hours of the night maybe even added a few more colors to it, it hatches.

You have a chick! They are furry, loud and ready to be fed. It was a chicken after all and you are very proud of this new creature, you probably give it a name even though you can?t tell whether it?s male or female (which is very difficult in young chicks). A few days later you realize that you?ll need another egg or have to buy another chicken to mate with yours or your precious egg, after lots of feed and care, will have provided you with 1-chicken dinner and be gone. Your great idea didn?t produce much and you really were never in business.

Of course you are smarter than that so you had several eggs or a partner who also had an egg that was compatible with your egg, Hmm, more about that another time. The point or question is: Did you save time or resources by starting with the egg versus buying some chickens. Both actions will get you to the same place. You thought the egg route would be simpler and cheaper. Let?s explore that.

 

Steve Ivey

Partner

NewGate Capital