Acquiring MindsJuly 31, 2023✓ Verified in SBA records

16 Months to Exit: Cleaning Up in Street Sweeping

with Manny Saxena · Street sweeping company (Northern California)

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LenderHawk analysis. Not affiliated with or endorsed by Acquiring Minds.

The Deal

Business

Street sweeping company (Northern California)

Industry

municipal street-sweeping

State

Multiple (EBITDA)

5.0x

Year

2020

Deal Source

proprietary

Financing Structure

Other

Strategic Rationale

Acquire recession-resistant municipal contracts and roll up fragmented market.

Post-Acquisition Performance

Tripled presence in Northern CA; sold to Warburg Pincus-backed strategic.

Key Takeaways

1Keep sales pipeline active even after getting multiple LOIs under contract; do not become complacent until deal closes.
2Evaluate blue collar businesses deeply rather than dismissing on surface-level metrics like high capex; equipment can be liquid and competitive advantage against fragmented competitors.
3Establish credibility with blue collar teams through transparency, side-by-side work, building personal relationships, and understanding employee motivations beyond just financial incentives.
4Recurring municipal contracts provide exceptional visibility and stability; essential services backed by restricted municipal funds are recession-resistant.
5Address cost inflation on fixed-price contracts proactively by approaching municipalities as partners and demonstrating transparency with cost documentation.

Matched SBA Loan Records

SBA loan filings we matched to this deal

Enterprise Bank & Trust95%

$510KP + 2.25%FY2015

Southland Economic Developmen95%

$601KFY2010

Mortgage Capital Development C95%

$2.8MFY2014

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The Deal

Business

Street sweeping company (Northern California)

Industry

municipal street-sweeping

State

Multiple (EBITDA)

5.0x

Year

2020

Deal Source

proprietary

Financing Structure

Other

Strategic Rationale

Acquire recession-resistant municipal contracts and roll up fragmented market.

Post-Acquisition Performance

Tripled presence in Northern CA; sold to Warburg Pincus-backed strategic.

Key Takeaways

1Keep sales pipeline active even after getting multiple LOIs under contract; do not become complacent until deal closes.

2Evaluate blue collar businesses deeply rather than dismissing on surface-level metrics like high capex; equipment can be liquid and competitive advantage against fragmented competitors.

3Establish credibility with blue collar teams through transparency, side-by-side work, building personal relationships, and understanding employee motivations beyond just financial incentives.

4Recurring municipal contracts provide exceptional visibility and stability; essential services backed by restricted municipal funds are recession-resistant.

5Address cost inflation on fixed-price contracts proactively by approaching municipalities as partners and demonstrating transparency with cost documentation.