Acquiring Minds

From 16 Years In Corporate To A 1m Sde Acquisition

with Jesus Wong · Gear Restore

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

The Deal

Business

Gear Restore

Industry

Technical outerwear and gear repair services

Year

2024

Revenue at Purchase

$1.0M

Deal Source

other

Financing Structure

Bank Loan

Buyer Equity

Seller Note

Strategic Rationale

Acquired a market-leading niche business with recurring revenue from premium brand relationships, offering both operational challenge and growth opportunities in adjacent service lines like technical laundry and sustainability consulting.

Post-Acquisition Performance

Business has grown 10% in the first half of the year post-acquisition with strong momentum from existing customer growth and new brand relationships, validating acquisition thesis.

Key Takeaways

1Finding the right loan advisor or broker is critical when financing acquisitions outside SBA programs, as they understand lender requirements and can position deals effectively.
2Customer concentration risk, while appearing severe on the surface, can be acceptable if customer relationships are sticky, contractual, and driven by strong market dynamics like sustainability trends.
3Protecting downside through forgivable seller notes and earn-outs tied to EBITDA maintenance may be more important than maximizing upside, particularly when acquiring in unfamiliar industries.

Acquiring Minds

From 16 Years In Corporate To A 1m Sde Acquisition

with Jesus Wong · Gear Restore

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

The Deal

Business

Gear Restore

Industry

Technical outerwear and gear repair services

Year

2024

Revenue at Purchase

$1.0M

Deal Source

other

Financing Structure

Bank Loan

Buyer Equity

Seller Note

Strategic Rationale

Post-Acquisition Performance

Business has grown 10% in the first half of the year post-acquisition with strong momentum from existing customer growth and new brand relationships, validating acquisition thesis.

Key Takeaways

1Finding the right loan advisor or broker is critical when financing acquisitions outside SBA programs, as they understand lender requirements and can position deals effectively.
2Customer concentration risk, while appearing severe on the surface, can be acceptable if customer relationships are sticky, contractual, and driven by strong market dynamics like sustainability trends.
3Protecting downside through forgivable seller notes and earn-outs tied to EBITDA maintenance may be more important than maximizing upside, particularly when acquiring in unfamiliar industries.