Gary Penrod and Associates
     

Opportunities Currently Being Offered through GPA:

 

New Acquisition Opportunity

Overview
The Company is an established janitorial services provider founded in 1977 with operations across four states in the Northeast. The customer base is specialized in grocery stores, convenience stores, food production facilities and fitness centers with the ability to expand into other sectors. Services include cleaning, floor refinishing, porter services and specialized food department and storage freezer services.

Investment Highlights
• Growing revenue and profitability
• Long-term and financially stable client base
• Scalable business model supports geographic expansion
• Experienced management team
• Proven processes facilitate bidding on quality service and not price alone

Financial Overview

($000's) FCST 2017 2016 2015 2014 2013
REVENUE 10,980 10,680 10,800 10,146 9,320
ADJ EBITDA 1,691 1,680 1,673 1,980 1,508

Operations
Services are performed with a combination of self-perform (20%) and subcontractor labor (80%) with employees servicing accounts in the local corporate area and subcontractors performing services in remote areas as well as all floor refinishing work. The subcontractor status has been vetted by both the DOL and the IRS with no issues.

Seller Information
After 40 years with the Company the Owners are planning for retirement but are willing to stay on as long as necessary following a transaction. No adjustment for their salaries has been included in the Adjusted EBITDA but would need to be if the Buyer does not wish for them to remain for an extended period.

Additional Detail
A detailed discussion of the acquisition opportunity is provided in the Confidential Information Memorandum, which is available to qualified parties upon the execution of a mutual non-disclosure agreement. Should you have any question regarding this opportunity or a desire to investigate the opportunity in greater detail, please contact GPA.

 

Recently Closed Transactions

1. Company located in Tennessee, having annual gross revenue of approximately $4.6 M, was acquired by a large strategic buyer with headquarters in the Southeast. Closed in May 2016.
2. Company located in Texas, having annual gross revenue of $21 M, was acquired by a large strategic company with headquarters in the Midwest. Closed in June 2016.
3. Company located in South Carolina, having revenue of approximately $3 M, was acquired by a large strategic company with headquarters in the Northeast. Closed in January 2017.

 

Pending Transaction Closings

GPA is currently working on several transactions, having annual gross revenue amounts ranging from $75 M(+) to $11 MAll are expected to close within several months.

 

Near Future Transactions

GPA is currently working with the shareholders of several companies, having annual gross revenue amounts ranging from $35 M to $4 M. It is anticipated that work will begin soon on these projects.

 

Recent Inquiries From Qualified Prospective Buyers

GPA receives, on a regular frequency, inquiries from qualified prospective buyers (both strategic and investor) for companies that are for sale. Many of these inquiries are for companies of all sizes that are located in the Midwest, the Southeast and the Mid-Atlantic. Companies that are considering a sale, or that have interest in learning more about the acquisition process should contact either Christi Rohmer (christi.rohmer@att.net) or Gary Penrod (gary@garypenrod.com) .

 

 

Gary Penrod and Associates, Inc, (GPA) is engaged exclusively in the building services M&A sector. Each associate has extensive experience in the industry. Our efforts go far beyond simply pairing buyers with sellers. We are true intermediaries, that is, we do understand the industry from a personal experience point of view and put ourselves in the place of our clients, understanding each company and each client’s goals. We do our best to help make those goals a reality.

GPA is available to consult and assist with any group that is considering the sale of their company.  That assistance can include assisting with the organization and preparation of its sale effort. 

 

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