HR.com Ltd

Agenda

1. Introductions and background on Next Chapter's advisory practice
2. Learn about Debbie's vision for HR.com and where she sees the company heading
3. Understand HR.com's current business model — community, events, certifications, media
4. Explore what a successful next chapter looks like for Debbie personally
5. Discuss market dynamics in HR technology and what's changed since 1999
6. Outline how Next Chapter works with founders when the time is right

Objectives ☐

• Understand Debbie McGrath's personal goals — is she thinking about an exit, a partner, or scaling further?
• Map HR.com's revenue streams: subscriptions, events, sponsorships, certifications, licensing
• Gauge how dependent the business is on Debbie's personal relationships and brand
• Identify whether inbound acquisition interest has already come in (domain alone attracts attention)
• Assess timeline — is this a 6-month conversation or a 2-year relationship?
• Earn the right to a second meeting

Talking Points

• HR.com has built something rare — a 27-year-old brand that owns the category name as a domain. That's an asset class of its own.
• The HR technology market has crossed $30 billion and strategic buyers are actively consolidating community and media platforms
• Two-letter .com domains in high-value verticals have commanded extraordinary premiums — the domain alone positions HR.com uniquely
• Next Chapter works exclusively with founders who've built something meaningful — we only take on companies where we genuinely believe there's a premium story to tell
• We've seen companies with strong community assets and thought leadership platforms attract buyers who value distribution as much as revenue
• Our role is to make sure founders like Debbie control the process, the timing, and the narrative

Questions to Ask (All Answered — March 23)

1. ☑ Founded 1999 — what was original vision?
   LinkedIn for HR people. Community platform. Content from community. 27 years.
2. ☑ Revenue drivers?
   Media/community, HR West conference, research institute, cert prep, 50K vendor directory. Profitable, ~20% EBITDA.
3. ☑ Community size/engagement?
   Massive — 260 activations during COVID including ADP (10K devs), Michelle Obama on platform.
4. ☑ Inbound buyer interest?
   8 offers in 2022 ($9M-$45M). Domain brokers say $15-20M. SAP, Oracle, Workday, OpenAI, Anthropic, Big 4 all interested.
5. ☑ Perfect outcome?
   Good exit + good home for employees (20-30 year tenure). No CEO role. Open to 2-year transition.
6. ☑ Day-to-day involvement?
   12-hour days for years. She IS the business. HIGH dependency.
7. ☑ Biggest concern?
   Employee welfare. Finding good home for long-tenured team.
8. ☑ Undervalued parts?
   Domain ($15-20M standalone). My People platform (35 clients interested, 7 going live in 45 days).
9. ☑ Domain as asset?
   Absolutely. Already separating content to alt domains. Broker engaged at 10%.
10. ☑ Transaction in 12-18 months?
    YES. Hip surgery May, no travel until June 8. Wants to ski more, see grandkids. Ready.

What We Bring

• Next Chapter is a boutique M&A advisory firm focused on founder-led businesses in specialized verticals
• We represent owners exclusively — we never represent buyers against our clients' interests
• Our process is designed to create competitive tension among qualified buyers to maximize value
• We have mapped the HR technology buyer landscape including strategic acquirers like Paychex, Workday, SAP SuccessFactors, and ADP, as well as PE firms active in the space
• We work on a success-based fee structure aligned with the founder's outcome
• We understand that for a 27-year founder-led company, the cultural fit of a buyer matters as much as the price

Danger Zones

• Do NOT quote specific valuation numbers — this is discovery, not a pitch. If asked, say we'd need to do proper diligence first.
• Do NOT mention any specific buyer names — never reveal we've already mapped targets
• Do NOT imply the company should be sold — let Debbie lead on timing and intent
• Do NOT reference that revenue and employee count are undisclosed — it signals we couldn't find data
• Do NOT compare HR.com to competitors or suggest the market is passing them by
• Do NOT bring up the domain valuation independently — let her raise the domain's value if she sees it that way
• Do NOT rush to next steps — this is a relationship meeting, not a close

If Positive → Next Steps

• ☑ Send personalized follow-up — Delivered 3-option strategic plan
• ☑ Schedule second meeting — Thursday call confirmed
• ☐ Begin quiet outreach to 2-3 buyers — In progress (63 buyers mapped)
• ☐ Draft engagement timeline — In progress

If Not Ready → Next Steps

• Thank Debbie for her time and position Next Chapter as a long-term resource, not a one-call pitch
• Ask permission to check in quarterly — keep the relationship warm without pressure
• Send one high-value piece of content (market report or comparable transaction summary) as a leave-behind
• Add HR.com to the 12-month nurture track — founders who say 'not now' often mean 'not yet'
• Note any specific triggers she mentioned (partner retirement, market shift, health) for future re-engagement timing