Company has activated its acquisition program and will target the acquisition of between $5 million and $10 million in aggregate annual adjusted EBITDA before the end of the year. Pursuant to the acquisition program the Company will evaluate multiple cash-generative businesses across digital marketing, e-commerce, and financial media.
The Company will target acquisitions at an average multiple of approximately 2-4x trailing adjusted EBITDA, structured with upfront cash consideration and seller-financed notes with performance-based earnout provisions. The Company believes the acquisitions of such targets could approximately double the Company's revenue run rate and would likely bring Onfolio to consistent profitability on an EBITDA and GAAP net income basis.
"Capital is available, the pipeline is full, and we are ready to move," said Dominic Wells, Chief Executive Officer of Onfolio. "Our goal is to add $5 to $10 million in EBITDA to the portfolio before the end of the year. Based on what we're seeing in our pipeline, we believe that's achievable.
"We intend to acquire businesses in verticals we already operate in — marketing agencies and e-commerce brands — where we've already proven what our AI operating model can do to margins. We may also expand into financial media and investor services, where we see significant opportunities to build a larger, more diversified platform.
"E-commerce represents a particularly interesting opportunity right now. For the first time in years, we're seeing margin expansion in the space as marketing costs come down due to AI efficiencies. We've been on the other side of this through our marketing agencies, passing those reductions on to clients. Now by acquiring eCommerce businesses, we can be on the receiving end of the same AI-driven efficiency gains.
"At 2-4x EBITDA, we believe we could buy these businesses at a fraction of what they'll be worth under our model. We hope to announce and close a number of acquisitions throughout the remainder of this year," concluded Wells.
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