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Michael Girdley (@Girdley), and Mills Snell (@thegeneralmills) talk about a deal we liked: A Drinking Water Delivery Service based in Texas.
We dig into how this business operates, potential challenges on the customer side, head & tail winds, and Location based risks.
How do Power Law returns work for PE and our day-to-day? What are our thoughts on the Capital Expenditure budget for this company? Learn more about this deal as you listen to this episode.
Company: Drinking Water Delivery Service
Location:TX
Stated Financials:$3M - SDE | $5M - FF&E | $6.5M Gross Revenue
Asking Price:$18M
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Show Notes:
(00:00) - Introduction
(01:17) - Our Sponsor is CloudBookkeeping
(02:44) - Catch up with Mike and Mills
(03:52) - Deal & financials: TX Drinking Water Delivery Service - $3M SDE
(07:02) - What does this company do?
(08:26) - What is the customer base risk associated with this deal?
(10:54) - How do we think about CapEx for this business?
(13:32) - What is the catch with Oil Field companies?
(15:32) - How do Power Law return work for PE and our day-to-day?
(21:05) - What is the location risk associated with this deal?
(22:58) - What’s so interesting about the cemetery business?
(23:47) - We’re looking for $3 to $5M in SDE/EBITDA businesses, send ‘em over!
(26:21) - How stable can this business be on a day-to-day basis?
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