05/11/2024
Buyer seeks to acquire B2B businesses based in SG
Acquisition Objective: Strategic Growth
Preferred types of business:
- Must be established businesses with at least good 3-years track record of positive recurring cashflows.
- Prefer businesses with recurring clients/revenue streams (e.g. subscription-based sales, contracts, projects) and strong existing customer base.
- Ideally with gradual growth progression and regional coverage
- Especially keen in the following industries/sectors:
(i) Recurring/contracted:
- General Facility Management: HVAC maintenance / repair, cleaning and janitorial, landscaping and groundskeeping, pest control
- Maintenance services: Elevator and escalator, lighting and electrical, swimming pool and spa, window cleaning and high-rise, FF&E
- Day-to-day management / consultancy: Parking management and valet services, waste management and recycling, interior plant care and green space management, signage and wayfinding, roofing and waterproofing
- Smart / safety: Automation / smart systems management, fire safety and prevention services, emergency and disaster response planning
- Security: Commercial surveillance (CCTV), security guard companies
- Commercial laundry
(ii) Evergreen staple B2B suppliers:
• Uniform suppliers
• Stationery suppliers
• Food Condiment distributor/wholesaler
To avoid:
- Trades that require owner to have technical certifications, or complex licenses in order to operate the business.
- Avoid heavy technical or technology requirements
- Business operation that solely relied on the Business owners to work
Mandatory requirements:
• Acquisition budget: up to SGD750k
• Buyout multiplier: up to 4x EBITDA
• Ideally 100% takeover. Also open to start progressive takeover from 60% to finally reach 100%.
• Ideal if owner/s can stay back at least 2 years. If owner/s were to exit fully upon takeover, must arrange successors with management team.
• Mid-management team is expected to stay after takeover
What size of Sellers:
• EBITDA*: SGD100k to 300k strongly preferred
• Annual Revenue: from SGD500k onwards
• Annual Net Profit: from 10% onwards
* EBITDA = Earnings Before Interest, Taxes, Depreciation/ Amortisation
= Net Profit + Interest Expense + Taxes + Depreciation + Amortisation
Size of Team: from 5 staff (= to list down the number of locals, SPs and EPs?)
Types of Assets:
-Not interested in any non-operational assets eg. Property. Buyer may consider renting office from Seller after acquisition.
Liabilities:
-Prefer owners to settle all the Liabilities prior to takeover.
Otherwise, any liabilities amount would be offset from final Sale Valuation.
= Stringent due diligence would be conducted =
Dateline expected for acquisition completion:
-Handing over period: minimum 12 months
-Training period: minimum 12 months
Preferred schedule & mode of Payments:
• 3 parts progressive cash payments
Brief background of Buyer:
• Venture-backed B2B business growing through acquisition.
Interested Selling parties,
kindly prepare a simple intro deck based on above checklist,
with basic key Financials (last 3 years + to date for 2024) & brief company background.
Note:
⚠️ Kindly do not mass circulate my deal as it is private & off-market. Send only to targeted eyes. Thank you. ⚠️
Expected commission from Sellers:
• 5% to 10% depending on Sale value.
