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How We Invest.

Sector Focused.

Enterprise Software

Mission Critical Software with Recurring Subscription Revenues Serving Business or Government End Markets

Tech-Enabled Services

Product-led Tech-Enabled Services Driven Primarily a Recurring Revenue Model

Enterprise Software and Technology Enabled Sevices
Mission Critical Applications
Majority Investments

We invest in companies with a proven, recurring revenue business model and the potential to be a market leader. We look for opportunities to accelerate top line growth both organically, through best practices, and inorganically, through accretive M&A.

 

We're big fans of mission-critical B2B Software and Business Services assets with a competitive moat, a sticky and diversified customer base.

 

Whether the business is bootstrapped, a division of a larger private organization, publicly traded or operating with a modest amount of previous capital investment, Bloom is completely agnostic to the structure.

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Specifically, we get excited about companies that check these boxes:

Target Company Attributes

  • Industry: B2B Software and Technology-enabled Business Services

  • Geography: North America, Europe or Australasia

  • Revenue: $3m to $20m+ in ARR

  • Growth: 5%+ annual revenue growth

  • Retention: 80%+ annual customer retention

  • Profitability: Positive EBITDA or near breakeven within 12 months

Transaction Focus

  • Majority investments & growth-oriented buyouts

  • Operational control required

  • Management-led buyouts

  • Add-on acquisitions

  • Carve-outs & divestitures

Download our full investment criteria list here: 

How We Approach Value.

EBITDA Multiple Driven

  • Revenue of at least $3 million

  • EBITDA of at least $1 million

  • EBITDA margins of at least 10%

  • Stable historical financial performance

  • Modest ongoing capital requirements

ARR Multiple Driven

  • ARR of at least $3 million

  • 12 month path to positive cash flow

  • Strong unit economics

  • Minimum 15% organic revenue growth

  • Gross Margins of at least 75%

For Founders & Owners.

  • We’re focused on maintaining your legacy across brand, customers, and the team

  • We seek to create value through operational improvements in the business and investments in various growth levers, both organically and through M&A

  • Flexible deal structure to provide both immediate liquidity as well as a option for a lucrative “second bite at the apple” down the road

  • We encourage founders or sellers to take board roles post close if staying on with the next growth chapter of the business

  • We’re a lean and nimble team who will close fast

For Intermediaries.

  • We’re investing from an institutional committed capital base, with the speed and nimble execution of a lean lower middle market deal team 

  • We have the ability to close quickly and to focus on business diligence (we can close with equity capital and refinance the capital structure afterward when needed)

  • Will invest in near break-even cash flow businesses with a need for operational change or improvements where traditional private equity won’t play, or in lower growth businesses where growth equity won’t play.

  • We're strategically focused on B2B enterprise software and technology enabled services

  • Differentiated approach through our hands-on operational perspective to diligence

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