Current
Engagements

THOR is an ISO-certified, contract manufacturer of metal components serving a variety of OEMs for many decades. With a proven operating history, solid management team, turnkey manufacturing capabilities, and robust sales pipeline, THOR is well-positioned as a platform investment or add-on acquisition for those looking to expand their presence in the Southeast.

The Company is a market leader of precision metal fabrications, progressive die stampings, tool & die making, and sub-assemblies. OEM customers enjoy THOR’s commitment to quality, competitive pricing, and on-time deliveries. They hail from a diverse segment of end markets including electric utilities, specialty vehicles, food service equipment, test & measurement, telecom, and similar commercial and light industrial markets.

The Company generates $10MM+ in revenue annually with healthy ±15% EBITDA margins. Fiscal year 2020 is tracking $10MM of revenue with $1.5MM of EBITDA (up from $1.4MM in 2019). The Company hasn't been materially impacted by Covid-19 and currently enjoys a healthy backlog and sales pipeline across a variety of end markets.

Current ownership supports the business remotely at the board level and does not participate in day-to-day operations. Onsite management is in place to oversee all aspects of the business providing a unique plug-n-play opportunity and seamless transition for new ownership. A full sale is preferred; however, roll-over equity will be considered in certain situations.

The Company leases a ±80,000 s.f. facility in a major Southeastern market with plans for expansion in the near term.

“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.

"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.

SAFECO

This well-established specialty distributor of technical safety equipment primarily to large manufacturers seeks a financial partner with proven experience growing niche, value-add distributors both organically and through acquisition. The owner, in his 70’s, seeks a financial buyer who will pay shareholders a fair price for the company while also providing the Company’s key managers an opportunity to co-invest for ownership.

The business focuses on niche, value-add products for specific technical safety applications. 1500 SKU’s for products that include skin or whole body protection from heat, cold, chemicals, hazardous materials and sharp objects like glass, knives or metal; eye protection from chemicals, particles, bright light and dust; hearing protection from loud manufacturing processes, engines, motors, etc; fall protection from high manufacturing processes, distribution activities or supply processes; lung protection from dust, chemicals, hazardous materials, manufacturing process fumes and more. This is a technical sale where specific products are required for each application. The Company excels at making sure their customers get the right safety products for their specific technical specification so their rank and file workers stay safe. The Company sells through a direct sales force and on-line. Inventory turn at 24X annually, an exceptional level. 4 key managers seek the opportunity to invest in the company. The Company undertook a strategic initiative to improve their margin profile by getting rid of low margin “reseller” customers, as well as, getting better prices from their suppliers and service providers given their sales volumes. The result of these activities was a doubling in EBITDA margins to approximately 14% in 2020.

Sales, EBITDA and cash-flow are very consistent month over month, as are sales to the company’s top 100 customers. There is no customer concentration. The Company enjoys double digit growth in its online business each of the last three years and mid-single digit growth in its direct sales channel. Employee and customer retention are excellent.

Valuation expectations at 6X 2020 Normal EBITDA.

We seek to close transaction by December 31, 2020 and will limit management visits to the top 5-6 most qualified buyers. Prospective buyers will qualify as follows: They are investing from a dedicated fund and can close in 2020; have direct distribution company growth experience and have online sales growth experience. The most qualified buyers will also bring experiences and understanding of technical safety products either from other investments in manufacturing or chemical manufacturing processes or safety products and services sales. Time is of the essence. If you qualify for this opportunity please contact us.

The Company operates from 30,000 s.f. warehouse and office facilities

The market for technical safety products remains consistently strong for American Manufacturers. Management and ownership don't mess with safety as the wrong products can cost employees their lives or promote injury. Getting the right products for the right application is critical. The Company enjoys supplier relationships with many manufacturers of technical safety products.

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.

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.

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.

"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.

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.

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.

“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.

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

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.