Care.com is the largest online marketplace for finding and managing family care founded by Sheila Lirio Marcelo, Dave Krupinski, Donna Levin and Zenobia Moochahala in 2007. This corporation helps finding child care, senior care, special needs care, military care, tutoring, per care, housekeeping, and tax support. They began expanding internationally in 2012 starting with United Kingdom and Canada. Currently they serve over 27 million members across twenty countries. The idea of starting this company came from Marcelo when she had troubles finding child care for her first born. Later her father had a heart attack and she had a difficult time finding care for him. (Lebovits, 2007) In January of 2014 Care.com becomes a publicly traded company and lists on the NYSE under the ticker symbol CRCM. (Care.com) In June 2016, Google Capiatal becomes Care.com's largest shareholder, investing $46.35 million and making its first investment in a public company. They help families and caregivers connect in a reliable and easy way. They have three different approaches business to business, caregivers to families and business to families. They have 90% coverage of U.S. ZIP codes. They are affordable comparing to mass market. They are investerd in trust and quality by screening the caregivers, doing third-party background checks, reviewing members, performing ongoing monitoring. Strong revenue growth. Compelling unit economics. Leveraging operating expenses and S&M spend. Profitable expectation of sustained profitability. Their revenue increased from $26 million in 2011 to $174 million in 2017. 21% of their revenue comes from [email protected], Marketplace and International transactions. They have 83% gross margin. They are spending 30% of revenue less on sales and marketing from 2011 to 2017. They dropped their customer acquisition cost from $122 to $99. Operating expense leverage went from 65% of revenue in 2012 to 56% of revenue in 2017. Clear leader (dominant leader in large and fragmented care services market), strong model (proven business model with compelling unit economics, profitable growth), trusted brand (significant brand leadership and trusted platform for growth), long runway (still low penetration of addressable market, both vertical and horizontal growth opportunity), favorable trends (strong demographic tailwinds), motivated team (experienced and passionate). Volume of stocks is 151,047. Their clients are facebook, HubSpot, twitter, Northwestern university, workday and iRobot. 83% of Google employees stated that they are better able to focus at work when using Care.com
" Last three years of financial performance of the exit partner (no more than one page) summarized in words (no tables or spreadsheets of numbers)
" Trends in the past five years and looking forward within the exit partner's industry (no more than one page). Use NAICS and market research from reports such as First Research and MarketLine Industry Reports from http://libguides.uwgb.edu/bus490 - see UWGB librarian Anna Merry and/or her videos for individual assistance.
" Brief history of who the exit partner has acquired before. If the exit partner has a number of acquisitions, a very brief history then a focus on the last five or so acquisitions (no more than two pages); if the exit partner has never made an acquisition, state that and move on (but you should be very sure of this).
Care.com has acquired four companies: Breedlove & Associates, Besser Betreut GmbH, Parents in a Pinch, Citrus Lane. In July 2012, the company acquired Besser Betreut GmbH- the largest online destination for care and service providers in Europe. Berlin-based online care destination and U.S largest online service created the world's largest care and service provider. Besser Betreut GmbH has customers in more than 15 countries, employees 100 people. In August 2012, their second acquisition was Breedlove & Associates. It is a subsidiary that provides household employer payroll, tax filing and compliance services to families in United States. The company is based in Texas and it is the biggest payroll firm that provides services for nannies and other household employees. According to Stephanie Breedlove, co-founder and managing partnet, Breedlove & Associates has over 10,000 clients and it processes more than $20 million in payroll per month. In December 2012, Care.com purchased Parents in a Pinch, a company that provides backup child and adult care services, such as when a nanny calls in sick. Parents in a Pinch, Inc. is a recognized leader in providing in-home backup childcare and adult care for corporations and families across the United States. Founded in 1984, Parents in a Pinch has an exceptional national network of nanny agencies with whom it works to provide high-quality, trusted backup care whenever there is a gap in a family's care arrangements.
In July 2014, Care.com purchased Citrus Lane, a company that offers subscription-based toy packages for families Citrus Lane is the leading social commerce platform for moms and aims to help families discover and buy the best products for their children, while creating a trusted community in which moms can share. Members of the subscription service receive a monthly box of curated products to help moms discover new and relevant items while delighting their children with fun surprises. All items are handpicked for the child's age and stage. Citrus Lane also boasts a vibrant community of moms who share their product recommendations, parenting experiences and advice with each other. Subscribers and members may also buy "best of" products anytime at www.citruslane.com/shop.
" Current trends in EBITDA-based or other income-statement-based acquisition/valuation multiples (including what the multiples are) in their industry and market segments (no more than one page). Note: a trend means comparisons of acquisition/valuation multiples over the past few years and how they are trending. Use Cognient data in the Exit Partners Analysis tools Content area or other valuation multiples data if you dislike Cognient
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