A worked business acquisition, end to end
Synthetic demonstration data — not externally malware-scanned and not suitable for an investment decision.
Northbrook Industrial Services, LLC (fictional) is entirely fictional. Nothing on this page is a real company, a real document or professional legal, tax, accounting or investment advice. Reading this page creates no deal and uses none of your active-deal allowance.
The target
- Company
- Northbrook Industrial Services, LLC (fictional)
- Project name
- Project Lattice (fictional)
- Industry
- Industrial maintenance services
- Sub-sector
- Route-based mechanical services
- Headquarters
- Columbus, Ohio, United States (fictional)
- Business model
- Contracted preventive maintenance with time-and-materials repair work
- Seller
- Founder-owned, no institutional capital
- Ownership
- Two founders, 60% / 40%
- Structure
- Asset purchase with working-capital peg
- Buyer role
- Independent sponsor as lead buyer
Financial periods
| Period | Type | Revenue | Gross profit | Reported EBITDA | Seller-adjusted | Capex |
|---|---|---|---|---|---|---|
| FY2023 (fictional) | historical | $18,400,000 | $6,260,000 | $2,180,000 | $2,640,000 | $410,000 |
| FY2024 (fictional) | historical | $21,050,000 | $7,360,000 | $2,690,000 | $3,310,000 | $505,000 |
| LTM to 30 Jun 2025 (fictional) | interim | $22,600,000 | $7,910,000 | $2,940,000 | $3,620,000 | Not provided |
| FY2026 forecast (fictional) | forecast | $24,300,000 | $8,600,000 | $3,180,000 | Not provided | $540,000 |
A blank figure is shown as "Not provided". It is never shown as zero.
Quality of earnings
FY2023 (fictional)
- Reported EBITDA
- $2,180,000
- Verified EBITDA
- $2,180,000
- Normalized EBITDA
- $2,180,000
- Seller-claimed, excluded until reviewed
- $0
- Accepted buyer-proposed
- $0
- Verified adjustments
- $0
FY2024 (fictional)
- Reported EBITDA
- $2,690,000
- Verified EBITDA
- $2,690,000
- Normalized EBITDA
- $2,690,000
- Seller-claimed, excluded until reviewed
- $0
- Accepted buyer-proposed
- $0
- Verified adjustments
- $0
LTM to 30 Jun 2025 (fictional)
- Reported EBITDA
- $2,940,000
- Verified EBITDA
- $3,216,000
- Normalized EBITDA
- $3,290,000
- Seller-claimed, excluded until reviewed
- $180,000
- Accepted buyer-proposed
- $74,000
- Verified adjustments
- $276,000
| Adjustment | Proposed by | Recurrence | Basis | Counted in | Effect |
|---|---|---|---|---|---|
| Owner compensation | verified | recurring | Evidenced | verified | $340,000 |
| Personal expenses | verified | recurring | Evidenced | verified | $86,000 |
| Nonrecurring professional fees | buyer proposed | nonrecurring | Manual assumption | buyer proposed | $74,000 |
| Run-rate savings | seller proposed | recurring | Manual assumption | seller claim only | $180,000 |
| Run-rate hires and investment | verified | recurring | Evidenced | verified | -$150,000 |
- Seller-claimed adjustments are shown separately and are excluded from the normalized figure until reviewed.
- One or more counted adjustments rest on a manual assumption rather than a source document.
Underwriting
Formula version ba-uw-1.0.0. Downside and Upside change only the assumptions listed against them; everything else is inherited from Base.
| Metric | Value | Formula | Missing inputs |
|---|---|---|---|
| Enterprise value | $19,740,000 | Enterprise value = proposed purchase price | — |
| Equity purchase price | $19,740,000 | Equity price = enterprise value + cash acquired − debt assumed | — |
| Net debt at entry | $0 | Net debt = debt assumed − cash acquired | — |
| EV / revenue | 0.87× | EV ÷ LTM revenue | — |
| EV / reported EBITDA | 6.71× | EV ÷ LTM reported EBITDA | — |
| EV / normalized EBITDA | 6.00× | EV ÷ normalized EBITDA | — |
| Total uses | $20,807,000 | Uses = enterprise value + debt repaid + transaction expenses + financing fees + minimum cash | — |
| Total debt raised | $9,870,000 | Debt raised = senior debt + subordinated debt | — |
| Sponsor equity required | $7,483,000 | Sponsor equity = total uses − debt raised − seller note − rollover equity | — |
| Opening leverage (× normalized EBITDA) | 3.45× | (senior + subordinated + seller note) ÷ normalized EBITDA | — |
| Cash interest (year 1) | $937,650 | Debt raised × blended cash interest rate | — |
| Mandatory amortization (year 1) | $987,000 | Debt raised × mandatory amortization rate | — |
| Annual debt service (year 1) | $1,924,650 | Cash interest + mandatory amortization | — |
| Working-capital adjustment | $110,000 | Working capital at close − target peg | — |
| Adjusted free cash flow (year 1) | $1,872,350 | Normalized EBITDA − maintenance capital expenditure − cash interest | — |
| Debt-service coverage (year 1) | 1.46× | (Normalized EBITDA − maintenance capex) ÷ annual debt service | — |
| Exit-year EBITDA | $4,198,966 | Normalized EBITDA × (1 + growth) ^ hold years | — |
| Exit enterprise value | $27,293,281 | Exit-year EBITDA × exit multiple | — |
| Exit equity value | $26,747,416 | Exit enterprise value × (1 − exit costs) − remaining debt, where debt is reduced by mandatory amortization and free cash flow sweep | — |
| MOIC (sponsor equity) | 3.57× | Exit equity value ÷ sponsor equity required | — |
| IRR (sponsor equity) | 29.0% | IRR = MOIC ^ (1 ÷ hold years) − 1, on a single entry and single exit cash flow | — |
| Cash-on-cash return (year 1) | 11.8% | (Free cash flow − mandatory amortization) ÷ sponsor equity required | — |
Sensitivity — exit equity value
| Exit multiple | 0% growth | 2.5% growth | 5% growth | 7.5% growth |
|---|---|---|---|---|
| 5.0× | $15,238,768 | $18,239,432 | $20,574,935 | $23,143,780 |
| 5.5× | $16,850,868 | $20,063,375 | $22,632,429 | $25,458,158 |
| 6.0× | $18,462,968 | $21,887,318 | $24,689,922 | $27,772,536 |
| 6.5× | $20,075,068 | $23,711,261 | $26,747,416 | $30,086,914 |
| 7.0× | $21,687,168 | $25,535,205 | $28,804,909 | $32,401,293 |
Customer and supplier concentration
Customers — LTM to 30 Jun 2025 (fictional)
- Denominator
- $14,050,000
- 10 included, 1 excluded
- Top 1
- 25.8%
- Top 5
- 75.7%
- Top 10
- 100.0%
- Top customer share is 25.8% against a review threshold of 20%. This is a review indicator, not a conclusion.
- Top five customer share is 75.7% against a review threshold of 50%. This is a review indicator, not a conclusion.
- Top ten customer share is 100.0% against a review threshold of 70%. This is a review indicator, not a conclusion.
- 1 record(s) excluded because no amount was provided. They are not treated as zero.
| Name | Amount | Share |
|---|---|---|
| Ridgeline Foods (fictional) | $3,620,000 | 25.8% |
| Halden Plastics (fictional) | $2,480,000 | 17.7% |
| Caldwell Paper (fictional) | $1,910,000 | 13.6% |
| Vantree Logistics (fictional) | $1,450,000 | 10.3% |
| Orlin Beverages (fictional) | $1,180,000 | 8.4% |
| Petra Castings (fictional) | $940,000 | 6.7% |
| Sable Rail (fictional) | $760,000 | 5.4% |
| Merrow Textiles (fictional) | $690,000 | 4.9% |
| Ashgate Dairy (fictional) | $540,000 | 3.8% |
| Bell Ridge Mills (fictional) | $480,000 | 3.4% |
| 1 record(s) with no amount provided | Not provided | Excluded — Amount not provided |
Suppliers — LTM to 30 Jun 2025 (fictional)
- Denominator
- $3,960,000
- 3 included, 0 excluded
- Top 1
- 53.0%
- Top 5
- 100.0%
- Top 10
- 100.0%
| Name | Amount | Share |
|---|---|---|
| Kessler Parts Group (fictional) | $2,100,000 | 53.0% |
| Trenton Bearings (fictional) | $1,240,000 | 31.3% |
| Ohio Valley Fasteners (fictional) | $620,000 | 15.7% |
100-day plan and value creation
- 100-day planAppoint a general manager and remove founder dependencyDay 30
- Value creationMove the top ten accounts onto written service agreementsDay 60
- Value creationComplete the insurance renewal and confirm the claimed savingDay 45
- 100-day planInstall monthly management reporting with a working-capital viewDay 30
- Value creationSecond supplier for bearings to reduce single-source exposureDay 90