What is NBCP Mission Statement?
New Beginning Capital Partners’ (NBCP) investment strategy is to acquire privately owned bookkeeping & accounting practices seeking to impact the growth and success of small businesses. Our acquiring criteria is assets valued between $100k to $1M, where NBCP believes ownership is more fragmented with clients seeking more tax and financial advisory-oriented services away from the traditional accounting practices; to one that utilizes more innovative software and technology.
What is NBCP Investment Thesis?
Fintech companies are innovating across broad categories — in banking, lending, insurance, real estate, investing and especially in the bookkeeping & accounting space — both on the customer-facing side and in core infrastructure of bookkeeping & accounting technology is being disruptive due to outsourcing to virtual financial professionals. NBCP seeks out value-add bookkeeping & accounting practices in fast growing markets that can yield high returns to investors. We believe the combination of adding a tax and financial advisory-oriented service model, utilizing innovative technology for mobile access, access to business capital for expansion, providing objective financial planning, capture document workflow automatically to audit-proofed books, and access to a dedicated virtual financial professionals offers small businesses a unique opportunity to leapfrog outdated infrastructure and compete with incumbent financial institutions to reimagine the way we manage their finances.
The estimated revenue from accounting services in the United States reached 133.4 billion U.S. dollars in 2021, up from 127.8 billion U.S. dollars in 2020. The revenue of this sector is forecast to resume growing in 2022, reaching a value of approximately 142 billion U.S. dollars
Employment of accountants and auditors is projected to grow 7 percent from 2020 to 2030, about as fast as the average for all occupations. About 135,000 openings for accountants and auditors are projected each year, on average, over the decade
The payroll, bookkeeping & accounting services industry in the US is the 8th ranked Professional, Scientific and Technical Services industry by market size and the 183rd largest in the US.
According to Reuters, Private equity investors are attracted to accounting firms because they believe they are low risk and recession-proof, deliver positive cash flow, and are poised for growth as the industry transitions to a more advisory-oriented service model.
What is NBCP investment criteria?
Bookkeeping & accounting is a core part of the profitability of a business. Having access to advanced, high-quality technology can increase a company's bottom line.
Investment: Acquisition of tax, bookkeeping and accounting practices
Purchase Price: $100k - $1M
Capital Raise: $25,000,000 - $50,000,000
Financing: Seller and/or debt financing
Purchase Goal: 25 - 50 practices
Purchase Period: Over a 5 year period.
Hold Period: 10 years
Growth Benchmark: Outperform the S&P 500
Exit Strategy: Sell to another private equity firm, sell to a larger bookkeeping and accounting company or issue a NBCP IPO
* Refer to the Private Placement Memorandum (PPM) offering.