Opportunities Currently Being Offered through GPA:
Acquisition Opportunity:
Overview
The Company is an established janitorial services provider founded in 1998 in the Northeast US. The customer base includes supermarkets, retail stores, banks and large pharmacies. The Company has large customers that it serves across the Northeast US as well as in other states. Services include cleaning, disinfection services and floor care.
Investment Highlights
- Reputable clients in desirable market sectors
- Recurring contract revenue
- Long-term relationships with national clients
- High growth potential with continued expansion of large clients and leveraging operations in other states
- Experienced management team
Operations
The Company operates under a subcontract model with established janitorial subcontractors it vets through an established approval process. Management’s processes and supervision has resulted in consistent account profitability and quality control.
Financial Overview
The 2020 financials are in the process of completion as discussed below but the expected 2020 Adjusted EBITDA is approximately $3 million. The Company continues to win new accounts in 2021 which have not been included in the Annualized Q1 2021 revenue.
Seller Information
The two Owners have managed the business since 1998. One Owner would like to remain with the Company following a transaction and the other would stay if requested by the Buyer.
Additional Detail
The Company has traditionally utilized a cash-basis financial system with financial information spread across several company and customer (billing) systems. Expenses for other real estate businesses were also paid out of the janitorial company through the end of 2020 with those expenses needing to be isolated. In 2020 management hired a financial consultant to assist in developing and implementing improved processes to consolidate all information in one accounting system. The Owners also hired a Controller who they subsequently terminated after a few months. GPA based our original timeline estimate on having complete 2020 and Q1 2021 financial statements in early May 2021. When received those financials were not complete. The Owners have hired a new Controller who is working to complete the 2020 and year-to-date 2021 financials with an estimated completion date of early August. Once received GPA will review the financials and prepare the Confidential Information Memorandum.
A detailed discussion of the acquisition opportunity will be provided in the Confidential Information Memorandum, which will be 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.
Gary Penrod and Associates, Inc.
301 Central Ave., Number 335
Hilton Head Island, SC 29926
Tel: (843)681-6588
gary@garypenrod.com
Qualified Interested Buyers
Interested buyers should contact GPA to express their interest and their preferred company profile; including, revenue size, market sector and market area preference.
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.
