Issue link: http://deals.uberflip.com/i/1531959
Highly Scalable Business Services and Cost Reduction Firm #67698 Sign NDA ► DISCLAIMER: All information contained in this document has been provided by the subject company to Generational Equity and while believed to be correct has not been verified. Accordingly, Generational Equity makes no representations or warranties as to the accuracy and truthfulness of such information. The recipient hereof acknowledges that Generational Equity shall not be liable for any loss or injury suffered by said recipient in any way connected to the delivery by Generational Equity of this document. At all times Generational Equity and its affiliate network members is an agent for the seller and not for the buyer. Generational Equity's fees are paid by the seller. Don Ho Managing Director - M&A Email: DHo@generational.com Mobile: 972-740-9439 Generational Equity 3400 N. Central Expressway, Suite 100, Richardson, TX Fax: 972-392-1124 BUSINESS HIGHLIGHTS The Company is a franchisor specializing in expense reduction consulting, empowering its franchisees to help clients save on business services such as waste management, recycling, telecom, utilities, and more. By leveraging a proprietary database of vendor benchmarks from over 30,000 client locations and a team of industry experts, the Company helps franchisees uncover savings for clients over 90% of the time. Operating in 28 states with 47 active franchisees, The Company provides comprehensive training, professional-grade marketing materials, and access to a vast database of leads to support franchisee success. With a diversified customer base and flexible payment options, the Company generates reliable recurring revenue while meeting the growing demand for cost-saving solutions. This proven franchise model, combining scalable operations with strong corporate support, positions the Company well for exponential growth. INVESTMENT BANK OF THE YEAR 2016 - 2017 - 2018 - 2022 COMPANY STATS > 20+ Years of Operations > 466 Active Accounts > Low Customer Concentration > National Presence > B2B Customer Market > Diversified Market Mixes > 16 FT Employees & 3 PT > Strong Management Team > Data Driven > S Corporation INVESTMENT APPEAL • Strong Financial Performance: The Company's revenue decreased in 2024 due to its strategic pivot to capitalize on offering ERC services, which significantly boosted sales in 2022 and 2023. However, when excluding ERC-related revenue, the Company demonstrated consistent growth in its core services, with revenue increasing from $2M in 2021 to $2.6M in 2022, $3.1M in 2023, and reaching $3.3M as of November 2024. This steady growth, supported by a strong base of recurring revenue, has allowed the Company to achieve impressive EBITDA margins approaching 30%. • Contracted Revenue: As of September 2024, the Company had an off balance sheet asset of $10.66 million in contracted revenue over the next five years, netting $6.4 million after franchisee payouts. This establishes a robust financial foundation and a reliable revenue stream to fuel sustained growth and expansion. • Highly Scalable: With 47 franchise locations spanning 28 states, the Company has established a streamlined process for opening new franchises. This scalable business model enables rapid expansion and consistently generates a growing pipeline of new business opportunities. • Recession Resistant: The Company's expense reduction services offer stability and consistent demand, as clients continually seek cost-saving solutions to strengthen their financial position, regardless of economic conditions. GROWTH OPPORTUNITY > Strategic Partnerships > Vast M&A Opportunity > Expand Internationally > Expand Service Offering Revenue Mix Historical & Projected Financial Performance (in Millions) Customer Market Mix Revenue / EBITDA $4.1M 2024 Projected Revenue $4.6M 2025 Projected Revenue (12.2% YoY Growth) $1.18M 2024 Projected EBITDA (28.8% of Sales) $1.35M 2025 Projected EBITDA (29.3% of Sales)