€1.2M EBITDA Municipal Leisure Operator – Western Germany

We are raising equity or mezzanine capital for a retirement succession (management buy-in) of a municipally contracted leisure facility operator in Western Germany (NRW). The owner -- a tax attorney in his mid-60s -- is retiring after building and running the business for over two decades. Targeting closing Q3 2026. The business has operated profitably for 20+ years, serving 400,000+ annual visitors, and is debt-free. It runs under a long-term management contract with the local municipality, secured until###-###-#### over 20 years of remaining contract life. The municipal counterparty carries an equity ratio above 90%, equivalent to AAA credit quality. Change-of-control consent has been granted -- the municipality welcomes the succession. This is an asset-light model: all real estate (~EUR 25M replacement value), energy costs, and major maintenance sit with the municipality. The acquirer takes on two highly profitable operating companies -- no real estate risk, no energy exposure, no capex burden. ~45% of revenue is recurring contracted revenue from a public-sector debtor. The remaining ~55% is market-driven but has been stable for 20+ years. FINANCIAL PROFILE (EUR) - Revenue: ~EUR 3M (consolidated, two entities) - Normalized EBITDA: ~EUR 1.2M (3-year average, owner compensation adjusted) - EBITDA margin: ~40% - Enterprise Value: ~EUR 5.1M (4.3x EV/EBITDA) - Adjusted Leverage: 3.2x (conservative for MBI) - DSCR Year 1: >2.0x - Free Cash Flow Year 1 (after all debt service): ~EUR 457K - Cumulative FCF over 5 years: ~EUR 2M - Break-even: CAFDS can drop ~44% before coverage reaches 1.0x INVESTOR TRANCHE -- YOUR OPPORTUNITY - Ticket: EUR 1,500,000 - Instrument at investor's choice: subordinated loan (8% current cash yield + profit participation) or minority equity with upside - Your yield (EUR 120K/yr) is covered 3.8x by Year 1 free cash flow alone - Cumulative FCF over 5 years (~EUR 2M) covers the full investor repayment (principal + yield) - Planned exit: Year 5 -- from operating cash flow, not dependent on a trade sale - Majority voting rights remain with buyer in all structures - A public mezzanine alternative (NRW.BANK Mittelstandsfonds) exists -- we prefer a private partner for strategic alignment FINANCING STATUS - Senior bank financing in advanced discussions with regional banks -- initial feedback positive - Supported by federal guarantee program (Buergschaftsbank, 80% coverage) -- net bank risk under EUR 700K - KfW subsidized loans (ERP succession + SME programs): EUR 1M - State mezzanine facility (KBG NRW): EUR 1.25M quasi-equity - Seller receives full cash at closing and additionally retains ~8% equity in the acquisition vehicle -- fully aligned - Only the investor tranche (EUR 1.5M) remains open ABOUT ME I am the buyer and incoming CEO. 15 years across finance, operations, and e-commerce -- including 5 years as managing director with full P&L responsibility. Prior successful exit (e-commerce company built from zero to EUR 6M revenue, sold to strategic buyer). IHK-certified financial controller (Bilanzbuchhalter). Microsoft alumnus. The existing operations manager stays in place with a team of 19 employees -- operational continuity from day one. The deal is under agreement. A complete data room is prepared -- full business plan (9 chapters), 10-year financial model, stress test scenarios, and all supporting analyses. This is an execution-ready deal, not a work-in-progress. Looking for a capital partner who values operator-led structures, predictable cash flows, and strong downside protection. Happy to share a detailed investment memorandum under NDA. All communication in English or German.