Acquiring Minds

Buy As Search Fund Keep As Long Term Owner

with Juan Aguilar · Door manufacturing business (unnamed in transcript)

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

The Deal

Business

Door manufacturing business (unnamed in transcript)

Industry

Light manufacturing - residential door production

Purchase Price⟲

$6.0M

Multiple (EBITDA)

2.0x

Year

2017

Revenue at Purchase

$20.0M

LTV at Close

70%

Deal Source

referral

Financing Structure

$3.0M

$1.8M

Bank Loan

$3.0M (50%)

Buyer Equity

$1.8M (30%)

Seller Note

$600K (10%)

Earnout

$600K (10%)

Strategic Rationale

Acquisition targeted low-income residential housing construction materials opportunity across Central America with business experiencing succession challenge between aging co-founders with family inheritance issues.

Post-Acquisition Performance

Business doubled EBITDA from $3 million to $6 million over six years through team restructuring, product focus, geographic expansion, and significant price increases; successfully completed dividend recapitalization in 2021-2022 returning capital to investors while retaining ownership.

Key Takeaways

1Shift from micromanagement culture to empowering management team through hiring and EOS implementation was critical to business transformation.
2A bold 25 percent price increase executed with strong customer communication strategy and clear value proposition led to margin expansion and industry-wide pricing normalization.
3Focus on free cash flow yield and business fundamentals rather than growth enables long-term optionality including dividend recaps, continued ownership, and permanent capital compounding.

Acquiring Minds

Buy As Search Fund Keep As Long Term Owner

with Juan Aguilar · Door manufacturing business (unnamed in transcript)

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

The Deal

Business

Door manufacturing business (unnamed in transcript)

Industry

Light manufacturing - residential door production

Purchase Price⟲

$6.0M

Multiple (EBITDA)

2.0x

Year

2017

Revenue at Purchase

$20.0M

LTV at Close

70%

Deal Source

referral

Financing Structure

$3.0M

$1.8M

Bank Loan

$3.0M (50%)

Buyer Equity

$1.8M (30%)

Seller Note

$600K (10%)

Earnout

$600K (10%)

Strategic Rationale

Post-Acquisition Performance

Key Takeaways

1Shift from micromanagement culture to empowering management team through hiring and EOS implementation was critical to business transformation.
2A bold 25 percent price increase executed with strong customer communication strategy and clear value proposition led to margin expansion and industry-wide pricing normalization.
3Focus on free cash flow yield and business fundamentals rather than growth enables long-term optionality including dividend recaps, continued ownership, and permanent capital compounding.