Acquiring Minds

Fire Covid Exit 5 Years In A 12m Events Business

with Will Wright · Peerless Events and Tents

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

The Deal

Business

Peerless Events and Tents

Industry

Event rental and tent services

State

Purchase Price

$10.0M

Multiple (EBITDA)

5.0x

Year

2018

Revenue at Purchase

$12.0M

LTV at Close

50%

Deal Source

broker

Financing Structure

$5.0M

$4.0M

Buyer Equity

$5.0M (50%)

Bank Loan

$4.0M (40%)

Seller Note

$1.0M (10%)

Strategic Rationale

Acquisition of Texas-based regional market leader in event rental positioned to capture share from struggling national competitor while benefiting from Texas demographic and economic growth.

Post-Acquisition Performance

Doubled revenue from twelve million to twenty-four million over five years despite fire destruction and COVID-19 pandemic through aggressive talent acquisition, culture transformation, and market share capture from weakened competitors; achieved four times multiple and thirty-eight to thirty-nine percent IRR.

Key Takeaways

1Crisis leadership and maintaining calm decisiveness during catastrophic events builds team confidence and organizational resilience.
2Culture transformation is achievable during crisis moments and is critical to scaling labor-intensive service businesses effectively.
3Aggressive talent acquisition during competitor weakness creates sustained competitive advantage through superior team capabilities.
4Gamified incentive structures aligning hourly and salaried employees to key performance metrics unlock productivity and profitability.
5Relationship-based recurring revenue in fragmented local markets provides stable downside with significant growth upside potential.

Matched SBA Loan Records

SBA loan filings we matched to this deal

Eastern Bank85%

$36KP + 1.50%FY2013

U.S. Bank, National Association85%

$40KP + 6.25%FY2018

The Huntington National Bank85%

$25KP + 3.75%FY2015

The Deal

Business

Peerless Events and Tents

Industry

Event rental and tent services

State

Purchase Price

$10.0M

Multiple (EBITDA)

5.0x

Year

2018

Revenue at Purchase

$12.0M

LTV at Close

50%

Deal Source

broker

Financing Structure

$5.0M

$4.0M

Buyer Equity

$5.0M (50%)

Bank Loan

$4.0M (40%)

Seller Note

$1.0M (10%)

Strategic Rationale

Acquisition of Texas-based regional market leader in event rental positioned to capture share from struggling national competitor while benefiting from Texas demographic and economic growth.

Post-Acquisition Performance

Key Takeaways

1Crisis leadership and maintaining calm decisiveness during catastrophic events builds team confidence and organizational resilience.

2Culture transformation is achievable during crisis moments and is critical to scaling labor-intensive service businesses effectively.

3Aggressive talent acquisition during competitor weakness creates sustained competitive advantage through superior team capabilities.

4Gamified incentive structures aligning hourly and salaried employees to key performance metrics unlock productivity and profitability.

5Relationship-based recurring revenue in fragmented local markets provides stable downside with significant growth upside potential.