Unlocking Business Potential in Washington State
Meydenbauer Partners, alongside our team of experienced advisors, is actively seeking to acquire our first small business within the next six months. We are offering unique equity opportunities to our base of Limited Partners.
Historically, our focus has been on flipping residential properties and syndicating multifamily housing investments. However, with one of our Managing Partners recently committing to the steps to transition out of their full-time role and two of our senior advisors successfully exiting their own businesses, we are now in a strong financial position to expand our portfolio by acquiring and growing multiple Washington State-based companies.
We are particularly interested in working with business owners considering retirement or embarking on a new chapter. Our team is focused on acquiring businesses with revenues between $1.5M and $7M, and we have the expertise to navigate multiple sectors to drive sustainable growth.
If you're considering selling or learning more about this opportunity, reach out to us today.
Our Acquisition Strategy
1
Identify Potential
We target businesses valued between 2-5x EBITDA, focusing on companies with solid cash flow or significant equipment and collateral. This makes them attractive to financial institutions and primed for growth.
2
Consolidate and Grow
By leveraging our expertise and resources, we aim to consolidate and grow these businesses. Our goal is to reach $10M in EBITDA through strategic management and expansion initiatives.
3
Maximize Value
With our growth strategy in place, we plan to exit at a multiple of 7-9x EBITDA. This approach not only benefits our investors but also ensures the long-term success and legacy of the acquired businesses.
Professional Services
Our founders have scaled and exited multiple businesses in consulting, staffing, and property management—stable sectors with strong client bases.
1
Aging Ownership & Demand
Many owners of small professional services firms, especially in consulting, IT, and legal sectors, are nearing retirement without succession plans, creating acquisition opportunities.
2
Digital Transformation & Automation
By 2025, 75% of firms expect the majority of their revenue to be driven by digital technologies like AI and automation. Firms lagging in this transformation are prime targets for acquisition and modernization.
3
New Advancements in Outsourcing
Virtual Assistants in the Philippines and India are streamlining routine tasks in professional services, improving profitability and client service. We can integrate our wholly owned Virtual Assistant company "Touchpoint" to adopting these services seamlessly for scalable growth.
4
Stable Demand
Stable Demand and Growth Demand for professional services remains strong, with the sector projected to grow at 6% CAGR through 2026, driven by the need for digital transformation and specialized expertise.
Case Study: Acquisition in the Professional Services Industry
One of our partners acquired a professional services firm for $4.3 million, with 2023 revenue of $7.5 million and EBITDA of $1.2 million. The seller, approaching retirement, sought a buyer who would uphold the company's culture and long-standing client relationships.
Deal Structure
Seller Financing: 15% of the transaction involved seller financing, ensuring the seller’s payout was tied to the business’s ongoing performance. Equity Injection: We raised 10% in equity through our established investor network, providing a strong capital foundation. SBA 7(a) Loan: The remaining amount was financed through a competitive SBA-backed loan, providing favorable terms to reduce financial risk. Management & Integration
To maintain stability, the original management team stayed on post-acquisition. A new CEO with a proven history of doubling revenues at similar firms was hired to drive growth through expanded services and operational efficiencies.
Outcome
Within 20 months, the firm saw a doubling of NOI due to improved operational efficiency, new service offerings, and stronger strategic direction from the new leadership.
Why Professional Services?
The professional services sector offers opportunities for enhancing efficiency through automation, virtual assistants, and process optimizations. Implementing these tools boosts client retention and enables scalable service delivery, positioning the business for sustained growth.
The Paving Industry: A Hidden Gem that we are looking for both advisors and investors to partner with
1
Aging Ownership
Many paving business owners are in their 60s without clear succession plans, creating opportunities for strategic acquisitions and seamless transitions.
2
Infrastructure Act Boost
The $350B investment from the Infrastructure Act is set to drive significant growth in the sector, increasing demand for road maintenance and construction services.
3
Technological Advancements
As autonomous vehicle technology expands, the need for precise road maintenance and line striping will become increasingly critical, adding long-term value to the industry.
4
Stable Demand
Road infrastructure is an essential component of modern society, ensuring a consistent need for paving services regardless of economic fluctuations.
Case Study: Paving
Our partners recently acquired a business for $6.5 million with 2023 revenue of $12.5 million and EBITDA of $1.7 million, resulting in an EBITDA purchase multiple of 3.7x. Due to a slight drop in their projected 2024 performance, we structured the deal to mitigate risk. At closing, we only contributed $2 million, with the remainder contingent on the company achieving at least $1.5 million in EBITDA over the next 12 months.
To close the transaction, we raised $1.5 million in equity and structured 30% of the acquisition as a seller carry with a 5% interest-only rate and a 7-year term.
The current owner and team have stayed on, and we brought in a new CEO with a proven track record of scaling businesses. This individual previously grew a paving company from $12 million to $24 million in annual revenue on two separate occasions, which gave us confidence in their ability to help drive future growth alongside the founder.
Roads will be exponentially more valuable as self driving becomes a lot more prevalent as Waymo and Robo Taxi from Tesla continue to evolve. 4 inch yellow and black lines are going to 6 inches. ( Lots of line striping needed)Secondly the infrastructure act passed by Joe Biden is spending 350B to fix roads in America that is currently rated a C- today from now till 2030.
These businesses often fall in a size range that’s too small for traditional private equity firms yet too large for first-time buyers leveraging SBA loans, allowing us to consistently stand out when making offers.
Home Services
Established businesses in landscaping, window installation, garage door services, and electrical work with loyal customer bases.
Home Services
Recently, one of our partners successfully acquired a $3 million HVAC business and transformed it into a profitable exit. The company, which initially faced operational inefficiencies, saw substantial growth and profitability after a series of strategic improvements. Here's an overview of how they achieved this turnaround:
1
Operational Streamlining
The partner introduced Field Service Management software to improve technician dispatch, scheduling, and customer service, cutting down inefficiencies.
2
Service Expansion
They expanded the company’s service offerings to include energy-efficient systems and indoor air quality solutions, aligning with growing consumer demand.
3
Recurring Revenue and Customer Retention
By focusing on securing long-term maintenance contracts, the business created a more predictable and stable revenue stream. Improved customer service and retention strategies helped to grow the customer base and secure repeat business.
4
Successful Exit
After several years of growth, the business was sold as part of a larger platform acquisition, delivering a significant return on investment.
Our Expertise and Management Approach
Professional Services, SaaS, and eCommerce
Our current operators bring deep experience in these sectors, allowing for efficient management and growth. We understand the nuances of scaling service-based businesses and leveraging technology for expansion.
Home Services
To ensure success in the home services sector, we have two seasoned operating partners in the home services industry that have scaled multiple home services businesses. Their experience will guide our strategy in this high-demand market, enabling us to capitalize on growth opportunities.
Paving
We have partnered with an operator who has built and sold two paving businesses. With deep industry knowledge and experience, we are well-positioned to capitalize on upcoming infrastructure investments and technological advancements in the paving sector.
Why Partner with Meydenbauer?
Access to Expert Management and Advisors
Our team brings decades of experience in various sectors, ensuring smooth transitions and effective growth strategies for acquired businesses.
Financial Strength
Our current base of investors and General Partners enable us to be in a unique position with banks and business owners to ensure fair valuations and support post-acquisition growth.
Legacy Preservation
We understand the importance of preserving the legacy of acquired businesses while positioning them for future success and expansion.
Washington State Focus
Our deep understanding of the local business landscape allows us to leverage regional opportunities and navigate challenges effectively.
Get Involved: Referral Opportunities
What types of businesses are you looking for?
We're seeking Washington State-based businesses with $1.5M-$7M in revenue, particularly in professional services, SaaS, eCommerce, home services, and paving/infrastructure services.
Is there a referral fee?
Yes, we offer a generous referral fee for successful introductions that lead to acquisitions. The specific amount depends on the size and complexity of the deal.
How do I refer a business?
If you know of a business that fits our profile, simply reach out to us through our website or contact information. We'll take it from there, keeping you informed throughout the process.