Infrastructure services deal in good geo, ~$2.0M equity left

by a searcher from Stanford University - Graduate School of Business

2 years ago

Hi All - 

Am looking at a deal under LOI via a friend with specs as follows. Email me at --@----.com  if you are interested in learning more and participating and I will introduce you. 
$3.5M equity check. $2.2M left. I will likely invest.
Searcher has to make a $200k down payment on 5/7 to keep exclusivity (time sensitive)


Overview:
Civil construction and infrastructure company providing water pipe, sewer, and street reconstruction projects for residential and municipal clients in good Rockies geography
- Benefits from increase in infrastructure spend and a low interest rate environment
In 2020, the company generated $18.4M in revenues and $2.0M in EBITDA with $9.1M in assets.
In 2021, the company is on track to generate $23.2M in revenues and $2.6M in EBITDA.
The purchase price is for $10.5M with $5.0M in debt financing, seller financing of 2.75M, and $3.48M in Equity.
Searcher is signing personal guarantees on bank debt and seller financing.
 

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investor from Universidade Católica Portuguesa - Catolica Lisbon School of Business and Economics

Interesting on learning more please send me a message.
Thanks

2 years ago | like reply | 0 likes

searcher

For those who are considering this deal (we looked at this company and the only reason we didn't pursue it was unrelated to the financials/economics and more on trying to adhere to our industry focus more strictly), Searchfunder provides access to two industry reports via IBISworld that I found very helpful for understanding the macroeconomic factors at play and just how fragmented the industry is: Water and Sewer Line Construction and Water and Sewer Line Rehabilitation. I'd recommend giving them a read since they're free and useful (and not just because ^Searchfunder member‌ would never forgive me for leaving those resources untapped).

Best of luck to your friend Jory as he seeks this tight turnaround on fundraising.

2 years ago | like reply | 0 likes

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