Issue link: http://deals.uberflip.com/i/1323418
MULTI-CHANNEL FENCE CONTRACTOR Southeast #63130 BUSINESS HIGHLIGHTS This family-owned, premier full-service fence contractor has served the residen al, commercial and industrial markets in the Southeast region for over thirty years. The Company installs and services vinyl, aluminum, chain-link, wood, decora ve gates, security gates, access controls, dumpster gates, FDOT highway, temporary fences, and many more. The Company drives sales to 5,000 ac ve customers through established personal rela onships, repeat business from previously-sa sfied customers, strong regional recogni on as the industry leader, internal sales and sophis cated digital marke ng campaigns supported by a professional web presence. The Company has consistently outperformed expecta ons genera ng a 15% compound annual growth rate from just $8.1M in 2017 to $10.8M in 2019 and on track to reach nearly $12M for 2020. Management indicates that not only is the aforemen oned growth con nuing into the future but that there are addi onal low-cost opportuni es to drive sales growth over the forecast period. Terry Mackin Senior Managing Director - M&A tmackin@genera onal.com 214-529-4598 INVESTMENT BANK OF THE YEAR 2016 - 2017 - 2018 DISCLAIMER: All informa on contained in this document has been provided by the subject company to Genera onal Equity and while believed to be correct has not been verified. Accordingly, Genera onal Equity makes no representa ons or warran es as to the accuracy and truthfulness of such informa on. The recipient hereof acknowledges that Genera onal Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Genera onal Equity of this document. At all mes Genera onal Equity and/or its affiliate network members are agents for the seller and not for the buyer. Genera onal Equity's fees are paid by the seller. INVESTMENT APPEAL REVENUE / EBITDA 2019 Revenue a. Backlog of Signed Contracts: The Company already has approximately $3.0 million of revenue under contract for 2020, represen ng revenue large enough to cover 54% of es mated opera ng expenses for the year. b. Rising Gross Profit Trend: Gross profit during the historical period has increased from 52.2% of sales in 2017 to 58.6% of sales by the end of 2019. The Company has been able to efficiently control its cost of sales a er high growth to maximize gross profit. c. Decreasing Opera ng Expenses: Opera ng expenses have been trending lower, decreasing as a percent of sales from 57.5% in 2017 to 46.9% in 2019. d. Management Will Remain through Transac on: The majority of owners are willing to remain through the transi on period, and would entertain remaining with new management for a longer period of me on a consultancy basis. Addi onally, all key employees will be available to remain with new ownership beyond the sale of the company. e. Ongoing Growth Opportuni es: Management cites several opportuni es to accelerate growth trends over the next few years including geographic market expansion, DIY fencing products and services as a new revenue stream, and expand mul -level railing product op ons and services. Genera onal Equity 3400 N. Central Expy. Suite 100 Richardson, TX 75082 972-232-1100 $1.27M $1.52M $10.8M $11.9M 2020 Revenue (PROJ) 2020 EBITDA (PROJ) 2019 EBITDA Sales 6 Administra on 7 Labor Force 59 Management 4 Owners 4 STAFF OVERVIEW KEY ACCOUNTS Client A 20% Client B 20% Client C 12% Client D 6% Client E 6% SIGN NDA ► ACCOUNT SUMMARY 2019 5,000 Repeat Business 60% Permanent Installa ons Temporary Fencing Custom Fabrica on Access Controls CUSTOMER MAKEUP (% 2019) REVENUE MAKEUP (% 2019) Commercial Residen al BRANDS CARRIED