Search Fund Investment Opportunity in Dallas Turf Grass Company Target
This deal came through my network on Twitter the past week:
It’s a self-funded search fund deal targeting an artificial turf grass installation company in Dallas.
There’s much to like about this one that piqued my attention:
Nice tailwinds as more and more homeowners are replacing grass with turf. And the turf tech itself is getting better every year.
One of the most responsive teams I’ve spoken to with a very clearly communicated deck as well. I don’t know what it is, but these guys come across as super high RPM to me.
The SBA 7a structure and setup means the searchers have some serious skin in the game. Those loans are personally guaranteed (though verify that!).
Relatively small amount of money being raised ($550k or so)
Some things to dig into (from my perspective):
What is the real exit potential? I think they have a decent answer(s) to this when I probed, but something to see if you agree with or not.
How much of the growth was just from COVID? It’s impossible to know the magnitude of this, but it has to be a factor and one to dig into.
So, that’s what I think! If you’re interested, please reach out to Johannes Hock <johannes.hock@silvanercapital.com> directly and they’re happy to speak with you.
Happy hunting!
Michael
PS - if you have a deal I should consider for this newsletter, email it to me! michael@girdley.com. Thanks!