4 Active Deals - Info below

July 17, 2017

by a searcher from Morehouse College in New York, NY, USA

I'm working on four deals. I could use some input from searchers who've closed or investor-operators. Learn more about me and my search here: Graves Hall Capital

Each of these companies are 100% for sale, have been profitable for the last three years, and have grown by at least 3% every year since 2014.

I've submited offers for each company. Each countered. I could use help with working out a creative deal structure. I have three years of financials and analysis for each company along with open lines of communication with management. I have the cellphone number for each CEO and I live within 20 minutes of each business.

I can't answer any questions in the comments because I'm under NDA but you can reach me at###-###-#### or redacted with any questions.

1. Ambulette Company, EST###-###-#### $8.6M Rev, $1.7 Adjusted EBITDA)

Transports elderly and disabled customers to medical appointments

Recurring Revenue?

All income in this business is from each insurance accounts from the elderly/disabled customers

Customer Concentration?

Two major insurance carriers - I sense risk with health care changes in NYS & at the federal level

Key Man Risk?

Minimal - The CEO will need to introduce me to the hospital coordinators that refer patients to this transportation company

EBITDA Margin?

around 20%

Commitment to Sell?

Seller is in his early 50s. He says he's exhausted but he's putting up a fight to get a high price.

2. Janitorial Company EST###-###-#### $7.3M Rev, Adjusted EBITDA 1.5M)

Cleans office buildings, hospitals, and universities

Recurring Revenue?

350 contracts represent 98% of the revenue

Customer Concentration?

None

Key Man Risk?

Minimal - The CEO has a sales staff that handles outbound and inbound inquiries

EBITDA Margin?

around 20%

Commitment to Sell?

Seller is in his early 50s. Been in the market for more than a year. His LOI fell apart last week and he called me to discuss a deal.

3. Large Conference Space EST. 2000 (2016 $11.5M Rev, Adjusted EBITDA $1.6M)

Three large spaces that are rented out to expos and festivals

Recurring Revenue?

Expos and festivals are booked at least a year in advance. Not contractual.

Customer Concentration?

Below 10% per customer

Key Man Risk?

This company has a working sales team that sources out events to be hosted at their venue. The CEO does not handle sales.

EBITDA Margin?

around 15%

Commitment to Sell?

CEO is in his early 70s. Still working new angles to make money from the business. Flexible on terms - open to seller financing and earnouts.

4. Commercial Dry Cleaner Est###-###-#### $11.1 Rev, Adjusted EBITDA $1.8M)

Cleans linen and uniforms for hotels and university clubs

Recurring Revenue?

25 contracts represent 100% of it's revenue

Customer Concentration?

Below 15%

Key Man Risk?

Minimal - The CEO still has a customer service role.

EBITDA Margin?

around 18%

Commitment to Sell?

Seller is in his early 70s. He's on vacation almost monthly. He's ready to go. He's retained a broker which further shows commitment.

Learn more about me and my search here: graveshallcap.com

Reply by a searcher
from The University of North Carolina at Chapel Hill in Philadelphia, PA, USA

I'm involved in a similar business as #1, special needs student transportation that my PE firm acquired. I've found the business to be more capital intensive than I would have initially thought. Of the ones you listed, I think the janitorial one sounds the most interesting - but that's just me. Feel free to reach out if you want to talk about the transportation business any further.

Reply by a searcher
from Indiana University at Bloomington in Chicago, IL, USA

Bakari, we spoke a few months back. I would agree with Tim that livery is often capital intensive, especially if revenue is insurance derived. Feel free to call me if you're interested in any of my thoughts.

+4 more replies.

Join the discussion