RAISING CAPITAL
Two protection plan / warranty companies (appliances and furniture) w captive admin
Finance · Confidential
revenue: $47
ebitda: $8
Exclusivity:
Exclusive Representation
SBA Eligiblity:
Not SBA Eligible
Revenue:
$47
EBITDA:
$8
Oak Stream Partners is sponsoring the simultaneous (or rapid sequential) acquisition of two independent-retail service-contract administrators—one in appliances and one in furniture with a dealer-owned captive. Combined entry is $59.1mm EV (7.5x / 7.85x on current cash EBITDA). The base case takes ~65% of identified initiatives into the P&L, assumes a return to historical 8% organic growth after a flat 2026, and models a 10x Year-5 exit on ~$17.4mm of combined EBITDA. That produces roughly 3.7x MOIC and ~30% IRR on the new sponsor equity check of ~$35mm (plus $19.5mm of new debt at 2.5x). The case excludes the add-on pipeline and a new product aisle. Both owners are collaborating, cash is currently constrained by runoff obligations and an ESOP that will be paid at close, and the plan is a recap to restore prior sales coverage while unlocking new economics.