We recommend proceeding to LOI at 7.5x with a CFO transition plan as a condition for Project Falcon, an industrial cleaning company with $42M revenue and $8.1M EBITDA. The market's fragmentation and growth potential support the investment thesis. Key risks include the departing CFO and market competition.
The investment thesis is supported by the following pillars: high recurring revenue, fragmented market with potential for consolidation, and steady market growth.
Project Falcon operates in the industrial cleaning sector, with a strong customer base and positive customer interviews.
Key risks include the departing CFO and market competition. A CFO transition plan can mitigate the risk of CFO departure.
| Category | Value |
|---|---|
| Revenue | $42M |
| EBITDA | $8.1M |
| Recurring Revenue | 92% |
| Entry Multiple | 7.5x |
| Equity | $25M |