Investment Project for Simple to Use Global Web Based Cashbook

Opportunity Snapshot

Investment Opportunity

Innovative web based cashbook software under SaaS for individual countries and their SMEs. High demand product. Revenue is recurring monthly subscription, strong cash flow and growth opportunity. We are looking at fund raising to secure capital to take our products to the NZ and overseas markets.

We are an innovative start up software coy with high demand products for the global markets under SaaS. The potential for our web based cashbook and accounting solutions for any country's SMEs is substantial.

Our revenue streams are by recurring mthly subs. Our development platform enables speedy build of versions for any country targeted. Our products are web based so delivery is instant,cost minimal. User access 24/7 worldwide.

Opportunity to purchase part ownership or stake in our IP. We seek an entrepreneur with skills and exp to take the business technology worldwide.

Price negotiable in range US$200k - US$1m. Funds for growth.

Reason for sale is family illness (it’s a family coy) and the need to go global with international experience.

Interested investors can contact us on Merar.

Competitive Advantage

Our product is different. Its concept and simplicity set new standards for easy to use accounting software. Therefore it is promoted as – “The World’s Simplest Cashbook”.

The key factors that differentiate our product for success appear to be:

• Simplicity - so simple – no accounting expertise required
• Intuitive - the interface and workflow focuses on ease of use
• Online - access from anywhere in the world
• Automated - auto transfer data from bank, no data input required
• Low Cost - affordable monthly payments (fully tax deductible)
• Knowledge - contains unique 3,000 page business knowledgebase
• Auto Writes - data from bank auto writes the user’s cashbook and schedules
• Integrate - able to integrate/interface with other accounting packages
• Accountants - special accountant’s version cuts 80% off client processing work

Rationale for the deal

This is an opportunity to be part of the changes and growth in the online accounting and financial software space which will eventually be embraced by all business owners worldwide.

Our target is to take the global business to a minimum $3m EBITDA within 2-3 years. The NZ financial forecasts detailed in our plan show substantial potential value should we meet targets. Even though the Global Financial Forecasts have been kept conservative, they are still attractive enough to provide substantial future value to the business.

Year 4 Summary 2013/14

Gross Sales Revenue $11.1
EBITDA $m $6.9
Future Earnings $m $6.9
Company Valuation $42
Bank balance $4.8

The global plan is simple. We will secure a “partner” or master licensee for each country. The partner will buy our license for their country. They will be totally responsible for marketing in their country using standard marketing methods. Operating the software in their own country will be at their care
and cost. They retain 85% of all revenue while the product takes a royalty of 15% of the gross income each month based on cash flows. The product has a low cost base, which allows for considerable growth in profits as the international revenue base grows. The HQ is responsible for all online marketing while the partner looks after offline. HQ provides the partner with full support while the partner provides support to
their user/members.

Our current interest is in securing a Master Australian Licensee or Majority Owner for the business in Australia.

Use of financing

The software is currently in “market test” status.
The company will use new funding to:
• Go to market fully in New Zealand; and
• Go to overseas markets in due course (Australia, Pacific Islands, UK, Ireland, USA, Canada, Singapore, Philippines, South Korea and South Africa).
The objective is to develop individual online cashbooks for up to 40 countries over the next 12 – 18 months. Funding is required to bridge the gap between funds received from the sale of licenses and operating costs as the user builds to a critical mass before break-even on an on-going basis.

The key costs in relation to this in each country are the analysis and execution of the appropriate tax structures and charts of accounts, initial marketing costs to quantify and understand the market, and finding
and securing appropriate licensees in each territory.

Funds may also be applied to the acquisition of other smaller accounting software players in the marketplace who do not have an online solution. A combined operation brings numerous advantages for all parties, since
we have the online product and IT expertise and the acquisition targets have a client base that could generate substantial ongoing monthly fees for the combined entity very quickly.

Opportunity for the investor

This is an opportunity to be part of the changes and growth in the online accounting and financial software space which will soon be embraced by all business owners worldwide. We are seeking an Australian Master Licencee or Australian Majority Owner for our global business.

Investors are expected to earn attractive returns even if they exit in 2-3 years and substantially more by year

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