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PEARL sells and services the industrial hydraulic hose, cylinder and connector market for OEM and replacement components. End markets are primarily industrial equipment hose and cylinder repair, but other facets of the business include OEM components for niche OEMs, as well as niche hose repair for heavy hydraulic equipment in large machines, ships and other applications like steel, paper and aluminum manufacturing.

The Company is based in the Southeast and is a full-line distributor of most major motion and control technologies manufacturers, supplying hydraulic and pneumatic cylinders, industrial hoses, automation components and systems, engineered products, and instrumentation products.

The Company has a team of technicians providing on-site and off-site services for large corporations and local businesses.

At the center of the business’ DNA is a commitment to delivering excellent customer service. The Company enjoys a long-standing reputation for quality products and superior customer support.

The CEO, in his 80s, is ready for retirement. The current team, including the Company’s day-to-day President, have the capabilities to run the business consistent with current operations.

PEARL seeks a passionate partner with experience in the industrial distribution market; hydraulic repair and distribution is a real plus. There is significant room for growth in this market.

The Company rents a 20,000 sq. ft. facility that includes offices, warehouse and a machine shop from an entity owned by the majority shareholder of the company.

You’ll find PEARL located in an excellent, growing market extremely appealing for hydraulic repair and distribution businesses given its strong industrial manufacturing base. However, the Company’s ability to provide on-time, high-quality solutions and the long history they have in the area have made PEARL the “most trusted partner” and a well-known player.

The industrial manufacturing market is driven by growing technological advancements in the hydraulic industry. Combining hydraulic cylinders with electronics for enhanced functionality, increased accuracy, and improved and controlled performance in various applications is expected to be a key factor for the market growth.

ROOSTER, a commercial landscaping company based in the Southeast US, provides maintenance (60%-70%) and enhancement services (25%-35%) with nominal new installation projects (5%-10%). Their client base consists of HOAs/apartment complexes, institutional facilities, businesses and healthcare facilities. With locations in 3 key markets, ROOSTER enjoys a diverse customer base and wide service area. ROOSTER generates exceptional margins compared to industry standards with 30%+ Gross margins and ±22% EBITDA margins.

The Company typically has ±90 employees but varies depending on the season. ROOSTER built an exceptional culture over the years and enjoys high employee retention with many long-tenured employees. Three shareholders seek retirement. Of the three, two are involved in operations, one is inactive from operations and all locations have other general management in place. The active owners expect to provide a 3-6 month transition commitment. The administrative/back-office duties are handled from corporate HQ. With a veteran staff and exceptional reputation in the marketplace, ROOSTER is primed for future growth.

Given its office locations in prime, growing markets, each market served could expand its current customer base. Given its mix of business and heavy emphasis on recurring maintenance work, ROOSTER is positioned nicely to combat any economic downturn. This business provides an exceptional opportunity for strategics seeking to expand its operations in the Southeast with access to 3 major markets in ROOSTER’s home state.

Culture matters here. This family business enjoys exceptional relationships with its customers, management and leadership. They seek a strategic or financial buyer who will fit well with their team, quality operations and customers.

The Company operates out of 3 locations in the Southeast. Real estate is owned by an affiliate entity and may be available.

BLADE, a multi-location, multi market commercial landscaping company provides maintenance, new installation, hardscapes, and snow removal services to a diverse client base. The combined mix of business between its locations is approx. 60% maintenance and snow, 37% installation, 3% hardscapes. BLADE has grown its maintenance revenue over the past few years to emphasize a recurring business model. Both locations are growing nicely, with one location in a rapidly growing MSA. Most new install clients transition into maintenance customers once the installation is completed.

The seller seeks a full sale. He is absentee from the business and enjoys strong operating managers at each office. The management team runs day-to-day operations and reports their performance to a central core team daily. Third generation family members handle financial oversight and HR/administrative duties. Service line managers handle their respective divisions. The Company is updated and equipped with industry leading software and technology. This technology investment has increased operating efficiencies and contributed to a nice annual growth rate of 7% over the past 4 years. The facilities are well kept with capacity to support growth. BLADE presents an intriguing opportunity to be a platform or a solid add-on opportunity for a large strategic.

Blade employs about 300 total employees including 100+ H2B team members across its locations.

The Company operates out of two locations on the East Coast of the U.S.

HAWK is a high-margin franchisee that specializes in water and fire damage restoration services based in a major Southeast market. 85% of revenue ties to water remediation and drying services. HAWK is unique in that they source their work directly from homeowners who have water or fire events, and then help the homeowner’s insurance company in resolving their claim. The Company does not perform reconstruction services. This allows them to get in and out of most projects in less than 5 days. This efficient operating model allows HAWK to enjoy ±25% EBITDA margins.

The Company’s founder was approached about franchising the concept a couple years ago and he’s allocated much of his time to building the franchisor, versus driving this corporate-owned unit. Several managers share time at this unit and in growing the franchisor. The motivation for sale is to get a strong operating franchisee in place so the owner can focus on growing the franchise business. HAWK has a strong management team that has been with the Company since its inception. Two shared employees will continue for 12-18 months or until the new owner finds strong replacements.

HAWK primarily services a 45-mile radius from its office. When the office gets a call, HAWK sends a sales person to inspect the project and work with the homeowner on assessing if a claim should be filed. Once HAWK receives a claim number from the insurance company, they send a 2-man crew to demo the damaged area, pick up contents and set up the equipment. The Company averages 6-8 calls per day resulting in 70-80 tickets per month. Average tickets range from $4,800 to $5,200.

The ideal buyer is a successful manager/entrepreneur with $3M+ net worth and operations experience. The owner believes there is a path to gaining 15-20% of overall market share through additional marketing and a sister location. Other growth opportunities include adding services and additional territories in tangential markets over time. There’s an opportunity for Master Franchise rights that would dramatically increase the territory size.

HAWK leases a 14,000 s.f. building (2-acres) from an independent third-party with quick access to the major interstates in its MSA.

The market for water and fire restoration services is excellent. HAWK’s owners believe the current geography generates $100-120M of water and fire restoration services annually. Many competitors are small mom and pops, others are larger franchises or regional players. However, very few of them have a similar model to HAWK where they sell directly to the homeowner when they have an event versus waiting for referrals from insurance companies.

PURITY is a leading water safety and compliance company serving municipalities, industrial customers, and healthcare systems across the Midwestern and Eastern US. The Company enjoys a highly recurring revenue stream supported by multi-year contracts and consistently generates 20%+ EBITDA margins. Annual top-line growth averages 12.4% over the past five years and trending at similar levels in 2022. Services offered by PURITY are state mandated and enforced by local municipalities to ensure safe drinking water to the public resulting in a stable and predictable cash flow profile.

In recent years, the Company invested $1M+ on a proprietary software platform that is currently being commercialized as a subscription based SaaS application sold into municipalities. Approximately 65% of revenue is scheduled monthly or annual billings with the balance driven by contracted service billed by occurrence. Revenue and operating profits are very stable and reliable month-to-month.

The Company is led by a strong executive team comprised of industry veterans and supported by a certified (non-union) workforce – total headcount today is approximately 88. Many of the key leaders are well-credentialed and hold training certifications to help build and develop the workforce. As a human capital intensive business model, PURITY prides itself in providing in-house training and competitive pay and benefits packages. The Company’s culture is centered around integrity, professionalism, and being the industry standard which has resulted in market leadership for nearly 40 years.

In their mid/late 60’s, the two shareholders seek to align with an experienced capital partner or strategic acquirer that will support continued growth and professional development. One of the owners is semi-retired today and works part-time out of his Florida residence – he desires to phase out fully within the first 12 months as his role is minimal in the business today. The other shareholder is acting CFO and open to supporting a 2–3 year transition. Both are open to retained equity and taking a longer term consulting or board level role going forward. The remaining management team is fully capable of running the day-to-day and eager to align with a growth oriented partner. Additionally, the opportunity for management to participate in equity or equity-like incentive plans is viewed favorably.

The Company leases one facility (±6,000 s.f.) in the Midwest.

Water quality and public safety is front of mind as local municipalities and utilities face continued regulation on protecting our most critical asset – WATER! Historically, local municipalities have relied on internal resources for test & inspection services. However, as state and local budgets tighten and the trend towards outsourced municipal services expand, PURITY is well-positioned as an industry leader to be the trusted, outsourced vendor of choice for these necessary test & inspection services. Additionally, PURITY’S domain expertise and best-in-class technology suite generates operational efficiencies resulting in cost savings for customers and an enhanced margin profile for the Company. The path towards growth includes continued geographic expansion, adding complementary service lines, and commercializing the newly developed SaaS platform on a national scale.

This U.S. headquartered global manufacturer and sourcing business (“VOYAGER”) provides global OEMs with the components they need in a variety of commodity areas including metal parts, forged parts, plastics, harnesses and cables. North America (Mexico, USA and Canada) represent ±60% of sales. Europe and Asia each represent ±20% of sales, varying slightly by year. The Company has more than 40 engineers on staff, located at both plants and as part of their corporate engineering team, to help customers in manufacturing, engineering and prototyping for new parts. VOYAGER focuses on high mix and medium- to low-volume customer applications, averaging 27-30% gross margins consistently.

The Company has a full management team today. The sellers will participate in future ownership as a platform to a private equity group, as well as, review strategic roll-over opportunities on a case-by-case basis. The CEO, in his early 70s, seeks retirement and plans to transition out of full-time day-to-day leadership to board leadership over a 12- to 18-month period. Two other shareholders and senior executives, in their 50s, each bring more than 20-years’ experience at the Company and will stay to continue to drive daily operations. They seek to roll-over some of their equity. As noted, VOYAGER enjoys a deep operational management team that includes domestic and global CFOs, sales manager, sales personnel, plant managers, a rep network, a manufacturing manager, COO, VP Engineering and operations.

The Company owns or JVs manufacturing plants in multiple countries globally, as well as, sources specialty products from other manufacturers and uses those products in subassemblies, kits or as part of a supply chain solution to its customers. The benefit of these long-term relationships is VOYAGER gets to control and prioritize production for its customers, giving them a more reliable global sourcing supply experience. Few competitors provide five commodity areas plus prototyping and manufacturing engineering support.

Sourcing and supply chain management has never been as important as it is today. Companies that can provide a consistent supply of their customers parts and materials get more looks at new opportunities. VOYAGER is seeing increased demand for its services as other suppliers fail to meet delivery or quality commitments. When the owner was younger, he had the business generating over $120M in sales and very profitable. At this stage of his life, he’s content with 10% annual growth, but notes there’s plenty of room to double the business over five years.

There are many competitors for a single commodity like wire harnesses, stamped metal parts, CNC machined parts, plastic injection molding or forged parts. There are few companies that supply all these commodities. This gives VOYAGER a strong growth strategy by winning with one commodity, like wire harnesses, doing a great job with this commodity and then getting referred to other commodity managers to pick up other products in injection molding, stamped metal, machined parts, etc.