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Apr 25, 2019 — Proven industry CEO will take control of a well-established family owned company. CEO seeks a financial or value-added equity partner. This historically profitable group of companies has enjoyed many years of successful operations but had some cash flow issues in 2016. With the advice of the prospective CEO, the current monthly run rate is now at the $4+ million annualized EBITDA pace on $20+ million annualized revenues. 2018 should significantly exceed those numbers based on additional immediate savings post investment closing and additional business the CEO can deliver to the Companies.
The Companies have about $20 million of rolling stock at fair market value and $3.5 million of RE. Additionally, about $6 million in cash and current AR stay with the businesses. There is no concentration issue and the companies are perfectly located in the currently healthy market with heavy investments being made by their many MSA clients. The company group provides a variety of services across all phases of upstream well life cycle. In investment of $24 million is required to close the transaction. This could be in the form of debt and/or equity. Minority and majority investor positions are negotiable but buy in CEO must maintain management control under reasonable contract conditions. Other management and owner transition have been negotiated. The CEO plans to position this well-established company as a platform for growth and sale with an approximate 5-year time frame. If the investor has a longer-term horizon, then a buyout of the current shareholders can be a contract condition.