RAISING CAPITAL
1 investor interested
Australian Line Maintenance Business
Manufacturing · Brisbane QLD, Australia
revenue: $30,000,000
ebitda: $5,000,000
Exclusivity:
Non-Exclusive Deal
SBA Eligiblity:
Not SBA Eligible
Revenue:
$30,000,000
EBITDA:
$5,000,000
I connected with a M&A advisory firm who are aware of a line maintenance company that is up for sale. I have limited details of the business at the moment, however before we starting to develop a valuation and prior to discussing a potential offer with the seller, the advisory firm would like to understand my ability to raise capital for this deal (i.e. to gauge seriousness). As such, I wanted gauge on this platform if, based on the information below, there are capital partners that may interested in this deal (details as follows). Please do feel free to DM me if you have any questions.
Financial Performance: $5m EBITDA. Owner is expecting 6-8x EBITDA
Service: Provide line maintenance service for airlines (not Qantas and Virgin) - service involves compulsory plane checks before the plane takes off. The business has the skills to do on and off wing (i.e. engines) and other heavy maintenance, but they don't have a hangar for this (i.e. investment required for growth here). They wouldn't have the skills to do large engine works (i.e. over $200k) - these parts would need to be sent overseas for servicing
Operations: Operations across most airports in Australia (but not in NT and Tasmania)
Customers: they have captured 40% of international transit (incl airlines such as Singapore Airlines, ANA, Turkish Airlines, Qatar Airways, Etihad, Air Asia). These airlines also use Qantas for some of their volume, but they would prefer not to use the Qantas (competition) for the service
Competition: fairly limited competition, which comes from Qantas, Virgin, and a Japanese company.
Industry is regulated and unionised, however there doesn't appear to be any issue with the unions
Management Team: CEO in place, who is more operational than strategic, and would want to move into the COO/GM Operations position and is willing to stick for 3-4 years. The CEO also owns the customer relationships.
The owners are a European family who own an overseas airline and want to relocate and concentrate their business in Europe