Invitation

Accredited investors:

I wanted to invite you to participate in a business acquisition opportunity I’m investing in.

Note: This is a fully passive investment opportunity and I am a passive investor, not management. 

The acquisition target is a vertically integrated roofing repair service and sheet metal fabrication shop in the north Texas market. 

Quick summary:

Year Established: 1937 

2023 Adj. EBITDA: $2.41M

2023 Revenue: $17.6M

Purchase Price: $13,925,000

Equity Target Raise: $2.6MM

Target Investor IRR: 39.3% 

Target Investor MOIC: 3.02x

Structure: 10% preferred return + 32% common equity

Investment Period: 5 years

Capital Distributions: Semi-annual

Target Close: March 20, 2024

Minimum Investment: $50k

Here’s why I’m putting my own money into the deal:

-Roofing is an essential, recession-resistant business, especially in Texas, which according to NASA ranks first in the country in the variety and frequency of natural disasters.

-The seller is offering a $4.75MM seller note, which is a great sign of faith in the future of the business and ties him to the transition.

-The sponsors who are seeking to acquire the business have a lot of skin in the game. They’re putting $500k of capital into the deal and are taking out an SBA loan which involves a personal guarantee. I like that one comes from the insurance industry, which is a primary payer for roofing repairs, and the other already owns another synergistic company in the construction space in the region. 

-There are some strong growth opportunities I’m excited about, including expanding geographic reach from the current 50-mile radius to 100-mile radius and establishing preferred provider status with key home insurance providers in Texas & Oklahoma.

I’ve gotten permission from the sponsors to share with the SMB Deal Hunter community the link to the data room provided to me. You must be an accredited investor to participate. 

There’s only room for a few more investors to join, so if you’re interested, request an invite to look at the data room ASAP:

Thanks,

Helen Guo

P.S. I’ll also be inviting those who have requested more information above to a private webinar with an opportunity for Q&A with the sponsors next Wednesday.