Gary Penrod and Associates
     

Opportunities Currently Being Offered through GPA:

Acquisition Opportunity:


Overview
The Company is an established janitorial services provider founded in 1986 in the Northeast US. The majority
of its operations are in its home state with business in 4 additional states. The customer base includes corporate
headquarters, manufacturing, education, and medical facilities, and office buildings. Services include cleaning,
disinfection services, handyman services and construction cleanup.


Investment Highlights
 Reputable clients in desirable market sectors
 Recurring contract revenue
 Low customer concentration
 High growth potential with expansion of large clients and leveraging operations in other states
 Experienced management team
 Excellent safety record

Operations
The Company operates under a direct labor model with only one subcontractor used for an account in a remote
area. Employees are non-union. Management’s utilization of strong processes, supervision and technology has
resulted in consistent account profitability and quality control. The Company enjoys a strong reputation as a
quality service provider.

Financial Overview
The Company lost its largest customer in 2019 and has continued to win new accounts to offset the lost business with a more diversified customer mix.

Financial Overview


Seller Information
The Owner is a CBSE and has managed the business since founding it 34 years ago. He would like to remain with the Company for 3-5 years following a transaction and is open to retaining some equity.

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.

Gary Penrod and Associates, Inc.
301 Central Ave., Number 335
Hilton Head Island, SC 29926
Tel: (843)681-6588
gary@garypenrod.com

 

Acquisition Opportunity #2

Overview
The Company is an established specialized building services provider operating in the Western U.S. for over 20 years and enjoys a reputation as a quality service provider with a high retention rate of long-term customers. Services are provided under recurring contracts and include commercial window cleaning, pressure washing, and other specialized services which are difficult for a customer to replace. The customer base includes blue-chip companies and other reputable institutions.

Operations
The Company primarily operates under a direct labor model with a few subcontractors used for support services. Management’s approach to safety and training differentiates the Company from its competition. Direct labor employees complete a 2-year training program which covers 8 separate training disciplines and they are continually assessed in the field to evaluate progress. Their worker’s compensation experience modification rate of 0.50 is the lowest in their region and has been held for 15 consecutive years. The workforce is unionized and the excellent wages and benefits along with the strong safety record contribute to an employee retention rate of 98% which allows hiring to be more selective than is typical in the industry.      

Financial Overview

Financial Overview

Investment Highlights

  • Growing revenue and profitability
  • Strong management team able to support continued growth
  • High customer retention rate, 99% for the past four years
  • Established reputation for quality service
  • Long operating history
  • Excellent safety record

Proposed Transaction
The goal of the transaction is to provide a liquidity event for the founder who wishes to work through the transition period and longer as desired by the Buyer. Key managers wish to remain with the Company following the transaction.  

A detailed discussion of the acquisition opportunity is provided in the Confidential Information Memorandum (CIM), 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.

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. 

 

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