Acquisition of $2M EBITDA Franchisor
January 24, 2018
by a searcher from Morehouse College in New York, NY, USA
The Company is a franchisor and the only national provider of this industry's repair services in the United States. With 154 repair centers across 26 states and over $66.0 million in systemwide sales, the Company has strong brand recognition and utilizes a “while-you-wait” repair model. Contracted royalty income and renewal fees on a network of over 150 franchise locations providing non-discretionary services creates extremely predictable and recurring revenue base across all economic cycles.
Minimal fixed costs and lean franchisor organization creates consistent EBITDA of over $2.0 million and margins in excess of 40.0%, while limited capital expenditures and working capital needs allow Company to maximize free cash flow.
Purchase Price: $8M
Debt: $5M - 6% interest rate
Equity: $3.5M - targeting a 30% IRR (.5M for closing costs)
This month I've received term sheets from multiple banks so I'm beginning to formally introduce this opportunity to potential investors. If you'd be interested in receiving a short summary, please reach out to me at redacted
from University of Pennsylvania in Miami, FL, USA
from IE Business School in Hartford, CT, USA