In final stage with a company 3rd generation family company. We are acquiring the company for less than 1.3x adjusted EBITDA

35 year year company in plastics space with 50 employees in a high cost location with high cost labor and rent.

Owner was recently informed they are losing lease on building and regional rent space is unattainable due to cost. The owner has moved out of the state the company is in and is not actively running the company, but still receives $300k annual per the income statement that will not be going forward.

We have located and have immediate option on a long term lease space that will reduce current rent by an estimated $200k per year and reduce labor costs an estimated $465k per year. There are other major value creators and cost savings opportunities after acquisition also.

Previous EBITDA over last 4 years shows range from 6% to 13% with owner payroll included. Mostly due to rent cost and labor cost in the area for limited skill/non skill labor.

Our modeling is showing a positive EBITDA of $1.63m in year one after acquisition.

We have access to trained employees in the new location, training via trade school for any skilled trades and ample talent ready and willing to show up daily.

Owner current option is to remove all cash, AP, inventory on books and sell equipment below liquidation value.

We feel this is a shame to simply walk away and shut the doors as they have VERY strong, stable customers and a great reputation, product and service and a strong potential.

We have the current senior leadership (COO/ Sales Leader) will stay and we have an award winning internal team and key industry expert engaged to advise and participate in the transition.

We are interested in raising capital to acquire the assets and have enough working capital going forward to continue the 35 year legacy and grow the company at a planned and achievable 10% annual growth.

We have discussed numerous funding and equity scenarios and would consider any non control positions that could include an accelerated repayment of capital with no dilution of equity.

I am open to all options.