Current
Engagements

$17MM Rev Building Services Franchisor with $5.1MM EBITDA (2020 Proj)

• Revenue:$17,000,000
• Cash Flow:$5,100,000
• Location:U.S.

"Diamond" is one of the fastest growing building services franchises with system-wide revenues expected to top $100MM in 2020.  The franchisor and related entities project $17MM in revenue this year, generating $5.1MM EBITDA.  System revenue has grown over 20% annually each of the last 3 years.  

Business highlights include a solid franchise management system that tracks all franchisee customer invoices and work in real-time.  Senior management team is in place with solid, bankable leadership.  

Diamond offers a proven model with high monthly recurring revenue (over $500k/month).  End user renewals are excellent - better than 92%.   

The owner seeks a growth partner with a proven franchisor investor to expand their core franchise, as well as to acquire other building service franchisors that complement their existing services and infrastructure.  They will consider mezz investors, minority equity investments and majority growth recap scenarios.  If you don't have an excellent track record growing franchises, you will not qualify to review this opportunity.

Facilities

Market Outlook / Competition

$13.7MM Rev/$2.9MM EBITDA Site Development & Utility Infrastructure Installation Co.

• Revenue:$13,700,000
• Cash Flow:$2,900,000
• FF&E:$1,500,000
• Asking Price:$6,600,000
• Real Estate Available:Yes
• Location:Southeast

Project GOLDMINE provides site development and utility infrastructure installation services to commercial developers, municipalities and utility providers in a major Southeast metro area. GOLDMINE excels at solving complex logistical problems in dense urban areas needing development and infrastructure installation or repair. The Company offers customers a diverse, turnkey set of services including pipe and utility installation, erosion control, curb and gutter, grading, detention, and storm water systems. GOLDMINE self-performs most of its work and provides customers with a single source for all their infrastructure and site requirements.

A long-tenured, experienced management team leads GOLDMINE today and delivers consistent profitability. Many executives bring more than 20 years experience.   Currently, the Company has nearly $10MM of contracted backlog.  Historically, the Company has generated $1.2-$1.5MM of EBITDA, however 2019 was a banner year with almost $3MM in EBITDA.

The founders are at retirement age and seek the right buyer to benefit from the strong management team and consistent customers. The ideal buyer brings relevant site development and/or utility installation experience to support continued growth.  Customers include utility companies, large developers, municipalities and other government agencies.

Facilities

GOLDMINE operates from an attractive ±4,500 s.f. brick office building and separate equipment shop located in an industrial park. The real estate is owned by the shareholders of Seller and available.

Market Outlook / Competition

Increasing urban population density and aging domestic utility infrastructure offer strong industry tailwinds for GOLDMINE. As the metro market the Company operates in grows, so does the need for GOLDMINE’s turnkey, urban site development services. Likewise, municipalities increasingly repair, replace, and upgrade existing water and electric infrastructure to support this growth. Typically, the Company is invited to a private, highly qualified bidders' process that includes only 2-3 local competitors.  Again the work includes more complex, higher margin, specialized projects, GOLDMINE is well-positioned to capitalize on these opportunities given the company's relationship with higher-end, well capitalized commercial developers, municipalities and utility customers.

$9.5MM Rev, $1.5MM EBITDA Food and Beverage Process Equipment Integrator

• Revenue:$9,500,000
• Cash Flow:$1,500,000
• Location:East U.S.

“Crystal” represents an exceptional opportunity to own a leader in the food and beverage process equipment engineering, fabrication and installation space.  With an installed base of more than 400 food or beverage processing facilities, the Company gets consistent repeat business from customers, with new opportunities coming from referrals. The Company designs and builds systems for batching, storage, water treatment, clean-in-place, and other sanitary processes or food manufacturing processes. It also distributes replacement parts for maintenance and repair of process systems. 

As a turnkey solutions provider, Crystal earns repeat business by providing high-quality solutions and seamless installation. A typical year includes installs in ±150 unique processing facilities.  As noted, with an installed base of 400+ factories, they are regularly upgrading or updating equipment, parts, lines or expansion initiatives.  More than 70% of annual revenues come from customers trusting Crystal for their needs for 10-25+ years.

With ever-changing consumer tastes and increased requirements for food safety, Crystal’s owners find themselves turning down more work each year as existing and new customers seek more of their services. Buyers willing to roll-up their sleeves and invest in additional staffing will achieve significant growth by accepting work they turn away today. 

Crystal’s owners desire working another 6-8 years.  Ideally, a strong strategic buyer with additional people and resources will provide them the opportunity to retain some equity going forward. The best buyers bring relevant industry knowledge and resources to support continued growth.

Facilities

Market Outlook / Competition

$5.9M Revenue, $2.2M EBITDA Specialty Equipment Rental Co

• Revenue:$5,912,000
• Cash Flow:$2,200,000
• Inventory:$92,000
• FF&E:$1,000,000
• Asking Price:Offers
• Location:Southern U.S.

“ORCA” rents specialized equipment to engineering firms and municipalities to support industrial and municipal water infrastructure operations.  Typical rental periods range from 1 month to 5 years with most rental units in the field more than 12 months at a time. The equipment is needed when critical water infrastructure gets expanded, repaired or replaced.  Typical payback on putting a rebuilt machine is fast, making the ± 40-piece rental fleet very valuable.  Rental rates vary based on length of rental, supply and demand of equipment available and mobilization fees.  Most rentals are $10k to $18k monthly for a single piece of equipment.  The Company boasts a strong technical team who repair and maintain this equipment for their own fleet, as well as, customer fleets.  ORCA will have its full fleet rented for many periods throughout the year.  In addition to the equipment, the Company provides consumable products and other technical services to its customers.  The demand for this niche rental is consistently steady and the Company believes it can quadruple in size with geographic expansion.  This expansion can include both greenfield locations and acquisition of other specialty rental firms. 

Facilities

The Company leases facilities and a large equipment yard from a related entity owned by the owners of the Company.

Market Outlook / Competition

The Company usually keeps its full fleet rented and can grow locally and geographically by adding to its specialized fleet of specialty equipment.  The Company will invest between $150k to $250k to put a fully rebuilt piece of equipment in the field.   It often turns down work due to not having equipment available to rent.

Correctional Facilities Healthcare - Contracted Revenue, No Reimbursement Risk

• Revenue:$1,500,000
• Cash Flow:$500,000
• Location:South

“ORANGE”  is a physician-owned company providing inmate healthcare services to local correctional facilities.  They currently have long-term contracts at five (5) facilities in the Southeast, serving over 700 inmates.  Contracts are fee-based and paid in advance each month, so there are no receivables and no reimbursement risk.

The Company has an excellent reputation for providing high quality care and personal service that is unmatched in the industry.  While the current owner runs it as a lifestyle business,  there is great potential to leverage the Company’s reputation to significantly grow the business. Buyers willing to invest in additional staffing and technology will be able to win new contracts with the current owner, while providing a higher quality of service than the competition.

The current owner wants to “take some chips off the table” and minimize the administrative burdens on his plate.  He would prefer a minimum 3-year transition to ensure continued growth and the ability to participate in that growth with an equity rollover of up to 30%.  The ideal buyer could be a strategic partner looking to add market share, a healthcare professional looking for a new career with fewer headaches, or a financial buyer interested in bringing resources and efficiencies to build a platform business. 

Facilities

Market Outlook / Competition

$2.45MM REV / $900k ODCF Logging Company

• Revenue:2,485,000
• Cash Flow:920,300
• Location:Southeast U.S.

Woodchuck is a ±$900k ODCF logging company located in a timber-rich region of the Southeastern U.S. generating steady and reliable cash flow from long-term relationships with its customers, the mills. The Company has coveted “dealerships” in place with all major local mills, making Woodchuck a premier supplier and limiting competition. Woodchuck collects payments weekly from customers via direct deposit.  The Company has a reliable crew, and most employees have been with Woodchuck for 5-20+ years. 

The Company has been run as a lifestyle business for several decades by the founder/seller, who desires to pursue land brokerage opportunities rather than daily operations of the logging business.  Woodchuck is well positioned for growth with unlimited potential to increase capacity by the addition of more crews and the opportunity to capitalize on more of the 2+ million acres of forestland in its immediate service area. 2019 projections show continued consistent cash flow ($2.5MM revenue, $900k+ of ODCF) and historical performance is strong ($2.2M 2016 and 2017 revenue, ±$730k ODCF 2016 and 2017). The Company maintains current equipment and spends $200-225k annually in capex. Limited competition exists as dealerships with mills are hard to secure, and the market is ripe for continued growth.

Facilities

The Company keeps the equipment at an empty lot owned by the seller. A new buyer will need to find their own empty lot for the equipment when it is not on location at a site.  

Market Outlook / Competition

Opportunities exist to expand production within Woodchuck’s current geographic footprint as timber demand continues to rise in the state and region. In addition, adding more crews to Woodchuck’s workforce will quickly increase capacity and allow for production outside of the Company’s immediate service area.  Additionally, the Company can leverage their dealerships by getting commission from other logging companies for access to their dealerships. Woodchuck can also grow by subcontracting more work, pursuing multi-year contracts and emphasizing a strategic focus on high-volume tracts of land to elicit higher revenue streams.    

Woodchuck competes locally with a few other wood dealers and logging companies that cut in slightly different timber areas.  Woodchuck outperforms its wood dealer competitors by eliminating the middle-man through dealerships and getting the job done with new equipment and efficient and reliable crews.

$13MM Rev, $2.9MM EBITDA Landscape Platform

• Revenue:$12,967,897
• Cash Flow:$2,836,625
• Inventory:-
• FF&E:$1,485,000
• Asking Price:Offers
• Real Estate Available:Lease
• Location:Southeast U.S.

"GreenPro" represents a special opportunity to partner with an exceptional outsourced landscaping, planning and maintenance executive team.  They seek a financial partner or strategic buyer who supports taking what they’ve built and growing it aggressively in the Southeast through acquisition and “greenfield” initiatives.  Management excels at analyzing and sharing Company job data with field supervisors so they can better manage existing work and more profitably select and price future jobs.  By offering many services, Greenpro customers limit their supplier base and get excellent landscape outcomes.  Division leaders know how they are doing and develop plans to get back on track if any division isn't hitting its numbers.

Greenpro is not good for search funds looking to take over and run the company.  The owner expects to stay and run it the next 5-7 years.  Greenpro is an excellent opportunity for funded private equity groups who excel at roll-up strategies and supporting management as they grow and improve their companies.  The owner is a bright, high-quality manager and you’ll want him as your partner.

The seller will roll proceeds that equate to a future 20-30% equity position in the recapitalized company going forward.  The seller prefers that Greenpro is the platform, but will review strategic acquisition opportunities where he can also retain or roll some equity going forward. He seeks an active operating partner who will roll up their sleeves and support acquisitions, and he desires to enhance technology to help the company continue to lower costs and increase margins. 

Facilities

The Company leases its facilities from an unrelated third party.  They have sufficient space to grow in their existing market and would look to acquire firms to integrate into their current facilities, as well as acquire operators in new markets with a similar facility profile.

Market Outlook / Competition

The Company boasts exceptional annual growth both organically and through acquisition since inception.  They predict continued conservative organic growth of 10-12% for the next three years, with additional larger increases some years due to acquisitions. They deliver a unique value proposition to commercial customers, home owners and new home developers.  Each customer type requires a different value proposition and the Company is exceptional at responding to needs that competitors fail to see.  

The commercial, residential and new-install landscaping market is highly fragmented with players offering all kinds of value propositions:  Low cost, high service, multi-service, single service, design-build, etc.  Greenpro competes against 4-6 high-end service providers, each with their own unique selling premise.  The Company’s consistent growth and future prospects validate their ability to win their fair share of business from competitors.

$28.5MM Rev/$2.8MM EBITDA Environmental Services Growth Recap

• Revenue:$28,500,000
• Cash Flow:$2,800,000
• Location:Midwest

EnviroFam represents a professionally operated “family” style diversified environmental and industrial services company.  New financial partners will be pleasantly surprised by the professional accounting, safety and operations systems developed and used by the company.  These systems are consistent with what you’d find from a public company versus a typical family-owned business. The sole owner seeks a partner who can bring past investment experience in industrial service and environmental service companies and who appreciates the company’s unique culture.  The owner wants to provide long-time senior managers with equity participation in the recap.

Services include traditional 2-men-and-a vac-truck $1500-$2500 jobs, industrial cleaning, hydro-blasting, steam cleaning, transportation, remediation, midstream and upstream services, asbestos abatement, underground utility cleaning and inspection and other services.

This is a nice business with a talented management team.  New partners should have relevant experience in the areas outlined above.  Facilities and equipment are up-to-date and in excellent condition.  Projections for 2019 are $34M of revenues and $3.6M of EBITDA.  2019 Q1 YTD EBITDA is approx. $200k ahead of 2018 Q1.

Ideal partners will bring a hold period in excess of 5 years.  The growth plan includes regional acquisitions and organic initiatives.  The company has a significant backlog of contracted work today.

Facilities

The Company provides services in the Midwest, Southeast and Southwest.  Facilities are leased by a related entity.

Market Outlook / Competition