Looking for Advice to Get Our Deal in Front of Investors
August 13, 2024
by a searcher from Pennsylvania State University in Honolulu, HI, USA
My partner and I have been working on a small firearms manufacturing deal for a number of months, swiftly aligned 3rd party funding, and built great rapport with the seller's representation.
The deal is in the $200M-$300M range of enterprise value and we had an agreeable purchase price and initial terms ironed out prior to funding alignment. Unfortunately, the sellers did not feel comfortable moving forward with the financial source and after much back and forth we arrived at the same conclusion.
The business is highly profitable with EBITDA margins consistently over 30% and with ~70% operational output potential without the need for capital expenditure (extremely lean).
-300 employees and 400 CNC machines running at 30% capacity | $30M in equipment and $20M in Real Estate
-Peak sales###-###-#### reached $150.5M with 49.7% EBITDA margins; (2023) $76M sales and 30.1% margin; and 39.9% average (expected industry swing through election cycles)
-Projected maximum operational output reaching sales $120-$140M (4 year forecast) $220M-$250M (8 year forecast).
-90% of orders fulfilled within 3 days, controlling all aspects of the product manufacturing process in-house
-Opportunities in $1.3B of federal arms manufacturing (leveraging my background of a decade in the Federal/DoD Contracting Office)
We are confident in this business and are looking to fund the deal through a mix of private credit and a select number of investors (ideally within the manufacturing space).
I would personally love to pursue a fund raise for this acquisition full-time & was introduced to searchfunder to learn ways to do this.
What is the best way to get our pitch and deal in front of the right investors for a deal this size? (UHNW and PFO investors/fund managers)
