Details: Next Step for Strategic Buyers



Executive Summary

The purpose of this site is to assist a strategic buyer in engaging with National Training Systems, Inc. in a process that leads to an investment or acquisition. Our unique Discovery process starts with a qualified buyer selecting from a range of business collaboration arrangements below. When the potential buyer is ready, next comes the traditional Letter of Intent, an additional Due Diligence step, a Closing step, and finally a transition phase with all needed support. Please read the following information carefully. You will find we are very easy to work with.

It is important that you have worked with, tested or marketed our FlexTraining flagship product before making an offer. That is the purpose of the discovery / collaboration step as outlined below. See A Path To Completion

Serious Investors Only: We will only consider an acquisition offer from a company that has worked with us, using one of the engagement options below.


Background

National Training Systems is seeking to be acquired by a larger company, a strategic buyer. Such an event would assist the company to grow in terms of customer acquisition and services offered. This page describes collaboration (initial due diligence) options - the path to an acquisition - that a prospective buyer will employ to evaluate the fit between companies and gain expertise in the learning technology industry.


An Ineffective Process

The old acquisition process is what we called the "Big Bang" concept. A self-described "buyer" swoops in, demands a raft of detailed proprietary financial information, examines it in secret, and then fades away. Or blindly creates an offer with only historical financial data and no clue about the product or how to operate in the learning technology marketplace. The seller was viewed as an "Information ATM" rather than a business partner. Since it's a waste of time, we don't utilize this kind of process.

We have received several generous offers from companies who did not really understand the industry and learning technology in general. They wanted to skip the critical collaboration step, and go straight to an offer and closing. And so they did not appreciate the dynamic, growing e-learning space and how the tools we supply to the market make it all possible. In each case, the buyer's acquisition project failed because they tried to do everything at once, to complete the entire objective in one transaction.


A Path To Completion

If you are serious about an acquisition, we require that you begin with one of the engagement/collaboration programs listed below. In this way, you will engage with us, to learn about the company and the industry hands-on. You will use our FlexTraining system to create online courses and/or acquire customers.

At the same time, we will build for you a 3-year revenue and profit "pro forma" based on an optimum fee schedule and your capacity to expand sales. We will also develop a customized "transition plan" which will help you organize your growth strategy and tactics. In a highly-leveraged industry - like software and application hosting - modest improvements in sales drive large increases in net income, as you know.

Whichever starting point you select, you will have experience with the FlexTraining learning platform and the learning technology industry, along with revenue and transition plans, in order to formulate an offer or an LOI.







Your Options for Collaboration - Please read carefully:


Acquire customers and build custom online courses, while you learn the ropes. An option for the stratagic buyer wishing to obtain E-Learning skills experience on a limited budget. The Exploration Partner program lets you earn commission while you gain additional experience selling and building custom training. Utilize your industry contacts and work with customers of all sizes, in all markets. Provide development and operational services to your new clients and retain 50% of the revenue. We provide infrastructure, software, and tech support. The fee for this low-cost engagement option is only $4900.
Acquire customers, operate the full FlexTraining system, and build custom online courses. Work with clients in various industries - your choice - and provide custom training and online catalogs. You also provide system setup and administration as well as first-line tech support for your customers. This economical option provides great experience in the operational side of E-Learning technology. You retain 50% of customer revenue, while we provide infrastructure, software, and second-line tech support. The cost for this hands-on option is $24,900. Enrolling in this program results in a $40,000 reduction in the published company acquisition fee.
You will be authorized and compensated for selling the full FlexTraining systems, not just online courses, while we provide software, infrastructure, sales guidance and second-line technical support. Have your customers manage and operate their own FlexTraining universal learning platform. You provide additional professional services as needed. This arrangement is the strongest option for a potential acquirer. You retain 50% of all sales and renewal revenue under this program. The cost for this engagement is $49,900. Enrolling in this program results in a $60,000 reduction in your published company acquisition fee, so the program more than pays for itself.



Moving Forward

You will choose one of the above programs and engage for a month, a quarter, a year, or as long as you like. This creates a business relationship and positions you for a potential investment or acquisition process. And it provides the experience you need to decide on additional engagement or investment in the learning technology space.

The result of these engagement programs is an investor or buyer with the product knowledge, industry experience and overall perspective needed to make a good decision. Whether it's an offer or a complete change in direction, the next move can be made with confidence. It just makes sense.

Once you have established yourself with one of the engagement options above, you will be considered a serious buyer candidate and we can provide inside information and company details. If you are not ready to engage at this time, we will keep your information on file while we work with other candidates.


Information Available to the Public

Before you have established yourself in one of the engagement options, we don't release any internal or proprietary information, naturally. But you are welcome to review a wealth of publicly-available information on our web site. In particular:




Frequently Asked Questions


Which markets and verticals has FlexTraining been used in?


FlexTraining has been deployed in all markets for private sector, public sector, and non-profit organizations. It is a perfect fit for projects of all sizes, is fully scalable and easily extensible.



Which engagement option from those listed above will give us the most knowledge and experience?


The "Collaboration" options - level one and level two - provide the best experiences. Level one allows you to sell and deliver online education and operate the amazing FlexTraining platform. And level two actually puts you in the learning technology business, selling FlexTraining itself to customers in all industries. It's a fantastic preview of what you will experience as a player in the Learning Technology space. This is exactly what you need to help you make an educated decision about an acquisition.



Which engagement options will provide us with a complete FlexTraining site for testing and exploration?


All the options will include a fully-functional installation of the FlexTraining system for your use in course development, testing, demos for customers and educating your team on the vast capabilities of FlexTraining itself.



What happens if we embark on an engagement program and then our situation changes and we decide to drop out after two months?


You can stop at any time. In that case, you will have had 60 days of valuable hands-on experience with a Universal Learning Platform.



If we start in one program, could we potentially move to a higher level after a period of time?


We pride ourselves on being easy to do business with. You can upgrade your collaboration level at any time by simply paying the difference, with no penalty fee. and we'll provide the additional training necessary to hit the ground running.



What if we select one of these options and eventually decide we are not interested in an acquisition. What are our options?


The collaboration programs are designed to lead to a potential acquisition. However, you can choose to walk away from everything if you wish. Or you can retain your membership in whatever program you are in, and continue to earn revenue and gain customers, for years. Each program is a self-supported, independent arrangement that you can retain for as long as you like.



What are the startup procedures for each level of engagement?


Follow all the links on this page and you will be well-informed. Then complete the simple form below and we'll get you set up. The important thing is to start now.



What if we want to skip the engagement process altogether and just make an offer on the company?


No thanks. That would be the plan for a "financial buyer", someone who is just looking to buy cash flow. Such a buyer would be better off looking at a yogurt shop, a restaurant, or a child-care business.







National Training Systems, Inc. - Advantages to Buyer


This is a turnkey operation with software, infrastructure, and customers already in place. It's a fantastic situation for a buyer with an existing company and a strong sales team.

You will start on day one with two major revenue sources:


  • IP for a complete online training framework, as the basis for direct sales and the establishment of distribution channels if desired. New customer acquisition will scale up as you deploy sales personnel. This is your primary source of revenue as you scale up and apply sales resources.
  • Established renewal revenue for current customers will begin around $300,000 annually and grow as you add customers. This is your additional "insurance policy" revenue as you begin to scale up. You will need to use your existing sales team to produce revenue with our FlexTraining product line.

This amazing company's operations are well established, and positive factors include:


  • Focused product/service Line. Easily understood and managed. Little chance for conflict with buyer's products.
  • Stable, proven product. Mature product already has all needed features. Development limited to streamlining and modest feature enhancements.
  • Clear title to intellectual property. Almost all in house development from scratch, in standards-based, web-native architecture.
  • Profitable for 20 straight years. Gradual, steady growth history.
  • No debt, no outside obligations other than office space lease. No outside equity, investors or pressures.
  • Existing mature sales pipeline, recurring revenue renewals.
  • No Accounts Receivable. Almost all cash operations.
  • No third-party entanglements or obligations. No reseller dependency.
  • No hidden liabilities. All software licenses have been issued with "as-is" clause and limitation of liability to fees paid.
  • Operational infrastructure in place (staff, networks, servers, products, collateral). Servers owned, not leased. No capital investments required.









Please review the engagement options described above and then complete this form.


Name:
Phone Number:
Business Email Address:
Company Name:
Company Web Site URL:
Preferred Engagement Program From Above:
Please also send me a 3-year proforma / forecast for this company, showing assumptions, revenue, and profits.