The Net Effect Contractor Advisors Inc. provides digital transformation advice and services to the building industry. TNE is seeking a small financial investment, $1M USD for a 25% share in the business,  from an active investor in order to expand its proven services to the US from its Canadian base. This expansion is in response to the needs of the building industry and  technology SaaS vendors who require support in onboarding, servicing and maintaining their clients. TNE is recognized by the ConTech industry as leaders in the sector.

The active investor should be prepared to contribute to the executive oversight of the company in one or more of the following key areas:

The Board of Advisors is made up of the C-suite members and external subject matter experts in the areas of technology, the building industry, human resource management, sales, and marketing. External SMEs are not shareholders of the company.

The investor will have full participation rights as a common shareholder.

The Net Effect's Business Plan overview can be accessed here.

The company operates virtually and has a mature technology structure that enables 20+ staff and contractors to work cohesively across Canada. There are staff groups in Vancouver, Calgary, Winnipeg, Toronto, and Montreal, with the company's first staff member in Atlantic Canada starting in July, 2024. In the four years since it was established, TNE has developed and perfected its project management methodology and processes in order to offer high quality outcomes to clients. Clients include architects, structural engineering firms, commercial and residential general contractors, sub-contractors (electrical, plumbing, HVAC, etc.), and property management companies.

Company leadership has over 60 years combined senior experience in the building industry and over 30 in the software deployment and digital transformation space. Staff members are architects, engineers, data system designers and developers, professional construction project managers (PMPs), and senior leaders in construction. TNE's people are considered leaders in the application of AI in Construction and are sought out regularly for their expertise. (See this recently published research).

TNEs Chief Revenue Officer, John Enns, is the past chair of the Winnipeg Construction Association and current chair of its Information, Communications, and Technology Committee.

The Chief Operating/Technology Officer, Craig Hurst, is the current chair of the Canadian Construction Association's Technology Committee and considered to be Canada's foremost expert on the use of AI in construction.

The CEO, Tim O'Brien, is a very proactive member of the various Construction Associations and Homebuilders Associations. 

Their expertise and thought leadership is sought after by industry stakeholders across Canada and beyond. 

The Net Effect has partnered with over 100 construction technology SaaS vendors and has perhaps the most complete library of ConTech "titles" in the industry. Staff are trained and technically savvy in the use of these applications,  knowing the functional situations that each app is best suited for. This enables TNE to provide excellent system designs to its clients that will help the client produce their component of the building process more efficiently and profitably. Future projects have a higher probability of being completed on time and on budget.

Many of the company's services have been productized, packages as "SKUs" that are:
 

These act as the starting point for clients to learn the benefit of TNEs services and capabilities. These projects most often lead to more advanced engagements and the utilization of fractional CTO services that the company offers. 

Due to TNEs previous involvement as authorized Digital Advisors to the Canada Digital Adoption Program (CDAP), a federal government grant program that provided SME's with the funding to pay for its work, the company was restricted from receiving a revenue share from the SaaS vendors being recommended due to conflict of interest guidelines. With that restriction now removed as CDAP has expired, TNE will be actively sharing in the revenue from the client's acquisition of the recommended apps. 

The company will be launching a new operation, ConTechHQ.com, that will be an online marketplace for SaaS applications specific to the building trades. This operation will engage artificial intelligence, AI, to provide site users with the ability to: 

Think of it as Capterra or G2 but entirely focused on ConTech.

The Net Effect Contractor Advisors Inc. and ConTechHQ.com will be fully operational in the US in Q4/2024. Because of the staffing and virtual structuring that are already in place, the company is fully capable of serving US-based clients now. Marketing and sales efforts begin in August, 2024 with initial target markets being in the Pacific Northwest, Chicagoland, and Western New York. Servicing of clients will be performed by Canadian staff until a viable and critical mass on US activity in achieved.

The North American construction industry is projected to reach a market size of $2.46 trillion in 2024 and is expected to grow to $3.11 trillion by 2029, with a compound annual growth rate (CAGR) of 4.82% during this period. The North American construction software industry is projected to be worth approximately $9.73 billion in 2024 and is expected to grow to $15.20 billion by 2029, with a compound annual growth rate (CAGR) of 9.33% during this period. Note that the software CAGR is almost twice as much as construction. This is due to the need for the overall industry to mature digitally.

The North American construction software market is set to experience significant growth, driven by technological advancements and increased investment in infrastructure projects across the region. The Net Effect is perfectly positioned for significant growth opportunities as a result of its two major development initiatives, US expansion and opening the ConTechHQ marketplace.

Entree to the US is being encouraged and supported by several of the SaaS vendor partners. Many ConTech SaaS vendors have engaged TNE to manage on-boarding of their customers throughout North America as they appreciate the value-add that is provided to the users and how that reduces "churn". TNE provides a more confident and successful integration of the new application due to the thorough methodology that is applied. The SaaS vendor is also eased of the burden of on-going change management and new user training that is disruptive for the SaaS vendor yet its a core business for TNE. 

To date, October 2024, TNE has signed six such agreements and had its staff trained by the vendors. Efforts to support more vendors in this manner continue and the company has a dedicated partnership coordinator on staff to organize these special relationships as well as the general channel partnerships with all SaaS vendors.  These efforts drive the development of ConTechHQ ultimately. ConTechHQ is expected to generate $CAD4M/ in gross revenue and $2.6M net in the first 24 months after investment.

In the same time frame, The Net Effect's core business will generate $CAD23.5M/$USD17.2 in gross revenue and $CAD16.2M/$USD11.8M in net revenue. 

Total gross revenue generated will be $CAD27.5/$USD20.1M in the first 24 months.

The proforma or financial forecast for the companies, Canada and the US for TNE and ConTechHQ, show a projected EBITDA of $CAD7.5M/$$USD5.5M at the end of the 24-month period after the investment has been made. The company is expected to produce a 31.5% of revenue EBITDA in year two and improve each year thereafter. 

The proforma may be acquired after execution of the Mutual Non-disclosure Agreement, available upon request.

The Net Effect Contractor Advisors Inc. is offering 25% of the issued common shares of the companies in return for $CAD1.38M/$USD1M. The expected rate of return before taxes is 133% in 24 months. There is no other class of shares at this time.

Active participation is expected, to be negotiated in terms of time commitment and compensation, and greatly valued.