Frequently Asked Questions
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Becoming a Partner
We’re always on the look out for companies who share our vision to join our portfolio and would be happy to discuss with you a strategic partnership.
We recommend reaching out to us through our contact form.
As a general guideline, we consider the following acquisition criteria when evaluating a business to join our auto and dealership portfolio:
- Technology: Software companies which touch any part of the automotive ecosystem, ranging from OEM to retail solutions and beyond
- Company size: We’ve found success with companies of any size and scale
- Geography: Our automotive portfolio has presence in seven countries and we’re looking to expand that footprint
- Priorities: Your customers and your employees
The duration of the M&A process can vary significantly. On average, it takes us 12-15 weeks, but the exact timeline will depend on factors like the complexity of the deal, industry-specific regulations, the size of the companies involved, and how smoothly negotiations and due diligence progress.
Confidentiality is our top priority and we take several steps to ensure that sensitive information is protected:
1. Non-Disclosure Agreements (NDAs): Before any detailed discussions or document sharing begins, we ensure that all parties involved sign strict NDAs to legally bind them to confidentiality.
2. Secure Data Rooms: We use secure, encrypted virtual data rooms to store and share documents. Access is restricted to authorized individuals only, with detailed tracking of who views what information.
3. Controlled Communication: We limit discussions to essential personnel and use secure communication channels to prevent any leaks or unauthorized access to sensitive information.
4. Clear Confidentiality Protocols* We establish clear guidelines on how information should be handled, shared, and discussed, ensuring that all parties understand and follow these protocols throughout the process.
These measures help to protect your business’s confidential information throughout the M&A process.
We conduct a thorough valuation process considering factors such as financial performance, market position, assets, liabilities, and growth potential.
We can accommodate diverse deal structures to suit the unique needs and preferences of each seller. Whether you’re looking for an all-cash transaction, which provides immediate liquidity and a clean exit, or a more tailored approach involving earn-outs, we have the flexibility to craft a deal that aligns with your financial goals and timeline.
Our goal is to collaborate closely with you to find the structure that maximizes value while ensuring a smooth transition for all parties involved.
It’s our preference to retain key personnel to ensure continuity of your business. These leaders are essential, as they understand your market, products and the automotive industry.
If you’re not considering retirement or stepping away from the business, we encourage you to stay on in a leadership capacity.
In fact, many of our most senior leaders joined Volaris through acquisition and have gone on to thrive within our organization.
M&A Information
With over 200 acquisitions to date, we put together The Ultimate Guide to Selling Your Software Company to educate first time sellers on what to expect. This detailed handbook walks you through the entire selling and acquisition process. It includes:
- How to improve your company’s valuation
- A detailed, step-by-step guide on the M&A process
- Sample checklists of documents and information needed
- What happens during and after the finalizing of the sale
Whether you’re just exploring your options or strongly considering selling, we recommend this guide to help you navigate your M&A journey.
We recommend having basic financial statements/information, which allows us to provide a preliminary valuation of your business.
The due diligence process involves both the buyer and seller validating assumptions about their relationship moving forward. During the process, financial, legal, and operational aspects of your company are reviewed.
In our experience of managing over 200 acquisitions to date, we’ve been able to develop a checklist to manage the compilation and prioritization of documents. It generally includes:
- Financial statements: Historical, year to date, and forecasted
- Market information: Market analysis, competitive landscape, and SWOT analysis
- Commercial data: Pricing and revenue model, sales pipeline, product analysis, and customer analysis
- Legal: Supplier agreements, customer agreements, any historic, current or potential claims, disputes, litigation, etc.
- Intellectual property: Patents, trademarks, NDAs and non-compete agreements, R&D agreements, etc.
View a sample checklist and deep dive into due diligence here
An earn-out is a payment structure where a portion of the sale price is contingent on the business achieving certain performance milestones post-acquisition. This can be a way to bridge valuation gaps and align incentives.
About Volaris Group
Volaris Group is a software company that acquires, manages, and grows software businesses. It is part of Constellation Software Inc., a Canadian software company listed on the Toronto Stock Exchange (TSX CSU).
Volaris Group is a forever-hold acquirer, seeking small to medium-sized software companies across various industries and geographies, providing them with operational support and resources to help them thrive and grow.
