Teamshares (TMS) investor relations material

Business model and acquisition strategy

• Focuses on acquiring $500,000–$5 million EBITDA, high free cash flow businesses from retiring owners, integrating them with new leadership and employee stock incentives.

• Pursues permanent ownership, aiming to scale through both acquisitions and organic growth, leveraging a large addressable market of small U.S. businesses owned by baby boomers and Gen X.

• Utilizes proprietary technology (Teamshares OS) for financial consolidation, analytics, and operational scalability.

• Maintains a diversified, industry-agnostic approach, reducing exposure to sector-specific risks and expanding total addressable market.

• Acquires businesses at attractive multiples, with a disciplined underwriting process and rigorous due diligence, including proof of cash and legal protections.

Technology and operational efficiency

• Developed in-house software for sourcing, analyzing, and closing acquisitions, as well as for ongoing financial monitoring and centralized cash management.

• Leverages AI and best-in-class applications to enhance subsidiary operations and maintain quality at scale.

• Data science team extracts value from operational data, applying learnings across subsidiaries to drive performance improvements.

• Centralized cash management allows redeployment of excess cash to the highest IRR opportunities, fueling a compounding growth cycle.

Financial performance and outlook

• Achieved significant operating leverage, with segment EBITDA projected to reach $60 million in 2026, up from $20 million the prior year, primarily through acquisitions.

• Forecasts indicate a key inflection point in 2025, where subsidiary earnings surpass corporate overhead, enabling more earnings to drop through to the bottom line.

• Expects to reach positive levered free cash flow in 2027, with a gradual move toward self-funding acquisitions as cost of capital declines.

• Cost of capital is expected to decrease as the company matures and achieves its EBITDA growth targets.