Acquiring Minds

Buying In A Small Market Building A Regional Powerhouse

with Jonathan Bornigal · Bunker

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

The Deal

Business

Bunker

Industry

Document Storage and Business Process Outsourcing

Multiple (EBITDA)

6.5x

Year

2013

Deal Source

proprietary

Financing Structure

Buyer Equity

Strategic Rationale

Identified market gap in Dominican Republic for professional document storage services following successful business model discovery in Panama; seized opportunity to build first-mover platform and expand across the Caribbean region.

Post-Acquisition Performance

Grew business from sub-one-million EBITDA to market-leading position capturing 85% of Dominican market and largest operator in Caribbean region through infrastructure expansion, middle management buildout, product offering refinement, digital transformation, and strategic acquisitions.

Key Takeaways

1In small markets with low M&A culture and price discovery, target high-margin businesses trading at seemingly high multiples rather than trying to negotiate mature businesses down to 4x EBITDA
2Growth equity plays require zero or minimal debt to preserve cash for reinvestment; leverage destroys IRR in high-growth scenarios by forcing cash allocation to debt service
3Build middle management infrastructure early and empower decision-makers; exponential growth comes from distributing decisions across teams rather than centralizing all decisions with the owner
4Avoid owning real estate unless it is strategic and core to the business; real estate becomes a value-destructive distraction and separate asset class requiring different optimization
5In non-U.S. markets, reputation and relationships are everything; proprietary deal flow from warm introductions matters far more than cold calling or broker channels

Matched SBA Loan Records

SBA loan filings we matched to this deal

Citibank, N.A.85%

$230KP + 1.25%FY2018

Columbia Bank85%

$25KP + 4.75%FY2011

Columbia Bank85%

$25KP + 4.75%FY2011

The Deal

Business

Bunker

Industry

Document Storage and Business Process Outsourcing

Multiple (EBITDA)

6.5x

Year

2013

Deal Source

proprietary

Financing Structure

Buyer Equity

Strategic Rationale

Post-Acquisition Performance

Key Takeaways

1In small markets with low M&A culture and price discovery, target high-margin businesses trading at seemingly high multiples rather than trying to negotiate mature businesses down to 4x EBITDA

2Growth equity plays require zero or minimal debt to preserve cash for reinvestment; leverage destroys IRR in high-growth scenarios by forcing cash allocation to debt service

3Build middle management infrastructure early and empower decision-makers; exponential growth comes from distributing decisions across teams rather than centralizing all decisions with the owner

4Avoid owning real estate unless it is strategic and core to the business; real estate becomes a value-destructive distraction and separate asset class requiring different optimization

5In non-U.S. markets, reputation and relationships are everything; proprietary deal flow from warm introductions matters far more than cold calling or broker channels