CONSOLIDATION STRATEGY

I'm the Founder and Managing Director of DSC Solutions, a multi-state facility services company. We are currently under an exclusive LOI to acquire a competitor doing $7M per year in revenue for just over $1M. The company has the potential to produce an EBITA of at least $1M after our operational and administrative improvements. We've identified several other potential targets under similar circumstances.

The industry is very fragmented, presenting a very good opportunity to consolidate smaller firms and undergo an exit at a higher multiple of EBITA. Has anyone pursued a similar strategy? Any advise?

Thanks!

Alan



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