Premier multi-state facility management firm providing all forms of services: general maintenance, electrical, lighting, painting, tenant improvements, water damage restoration, janitorial, carpet, floor and window care, pressure washing, striping, sweeping, landscaping, and snow removal. This is a niche recession proof company with enduring competitive advantage. They have experienced exponential growth of 10x revenue since 2003, 5x revenue since 2006 and 2x revenue from 2010-2012. They enjoy long-term customers with multi-year recurring and repeatable service contracts and high profit margins that are twice the industry average.
They have leased spaces with custom tenant improvements to suit their needs. All leases are market rate plus triple-net. Their headquarter lease expires in 2019 plus options. This facility is divided equally with office space and shop space along with several satellite offices.
Competition is primarily from large national entities focusing on price. Most national players typically focus on one aspect of facility services such as janitorial or landscape. National providers that offer single source facility services typically outsource the majority of their work. The Company is a large regional facility provider where quality and breadth of in-house service is instrumental to their ongoing success giving them the competitive advantage.
Growth and Expansion
Currently, the Company does minimal outbound marketing, relying instead on its reputation, word-of-mouth, and its existing relationships with long-term customers. The Company has grown over 5 times gross revenue since 2006. Uniquely positioned for accelerated growth, they expect to more than double revenue in the next 5 years with gross profit margins of ~23% and maintaining consistent adjusted EBITDA margins of 12-14% which are more than +/-3x the industry norm of 3-4% EBITDA. With an impeccable reputation and high rankings, they have won many local and national honors.
Reason for Selling
This is part of an accelerated planned 5 year exit.
Support and Training
This opportunity is being offered on a stock basis to guard against multi-year customer contract novation issues, existing contract bids and ease of ownership transition. A stock basis will benefit the seller on a tax basis and exit confidentiality but the primary rationale is to maintain the customer contracts without disclosure risk during the due diligence period. Seller is willing to stay on as needed for typical transition training.