Target Overview

The target company is a mid-stage operation within its market with a strong target database and respectable margins. While present opportunity analysis does not make a market disruptor or distinct differentiator apparent, there are several opportunities where an investing partner could achieve meaningful impact on overall marketability and value:

Market Position

Presently, the brand is not strong, and this certainly impacts client conversions as well as sellability.

Several efforts could improve this:

    • BBB claims & issue remediation
    • Join ARDA and earn placement on “Service Provider Index”
    • Improve Message & Transparency

Clean up Financials

It is uncertain whether or not current financial reports follow common GAAP guidelines:

    • Classifications do not appear standard
    • Business entities and their cross-operational dependancies are not clearly identified
    • Ensure that all non-operational items are clearly identified and normalized
    • Purchase industry reports so that operation can be benchmarked
    • Audit financials and begin regularly reviewing from standardized reports

Differentiation

There needs to be clear differentiation within this organization to keep it from being valued as a commodities broker

    • Understand “proprietary” database, and build this asset
    • Create a user experience disruption that sets NWTS apart within this saturated and fragmented industry
    • Make the major competitors feel threatened by making customer base recognize clear advantage

Investment Determination

After significant consideration and deliberation, this is an investment Blue Sky Capital Resources will pass on for the following reasons:

Values

    • The industry is fraught with predatory practices
    • It cannot be proven to our satisfaction that questionable decisions and reviews were not deviations from our teams core values

Disruption

    • Beyond brand remediation, there is no clear vector to substantial growth
    • “Proprietary” database lacks credible substantiation
    • There is no evidence of an industry disruptor in user experience or operational efficiency that would make competitors take notice

Financials

    • Financial reports leave many questions about the operation, including reinforcing preceding points
    • There is not a clear opportunity for optimization embedded in financial reports

Summarily, it is deemed unlikely at this stage that this organization is positioned to achieve our investment targets, and therefore is not deemed to be a suitable investment vehicle.