Hello all,
I've have been working with a roll-up of electricians in Scandinavia for a couple of months. met 30+ companies and found about 10 who are interested. 1-5M turnover with 10% profitability. Several of them are fully booked +12 months.
Offer 4x with 50% cash, 30% seller finances and 20% reinvestment in the parent company. Heading in to LOI during holidays.
Has anyone heard of or experienced a similar case? Any US-based best practices to look at?
Experience with rollng-up electricians
by a searcher
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2) 20% reinvestment: Assuming the 50% is pure equity, then the 20% reinvestment would equal 40% ownership in the parent. If the 50% contains debt, then the 20% would mean >40% ownership in parent.
There have been issues with contracts based on the price increases, but now they have agreed to follow the pricing increase during the project. Good point, need to look into project profitability during DD.
Do you know any success cases over there to look at?