LIMITED INVESTMENT OPPORTUNITY
Earn 9% Interest for Two Years
with Equity Conversion Option
The Kinney Group has identified a franchise system of 'mom & pop' companies within a fragmented $54 billion B2B industry in which there are no dominant players and:
- average revenues per location are $622,386 but the potential is $3,000,000 per location without further capital expenditures
- moderately performing locations are operating at 20% EBITDA (profit), average locations are operating at 25% EBITDA and well-run locations are operating at 30% EBITDA with the potential to reach 40% EBITDA
Subject to demonstration of the impact of implementing the Critical Factors Management System into a pilot location, we are in discussions to develop a $20 million fund to acquire locations in the $450,000 to $1,000,000 revenue range that are operating at or below 25% EBITDA and available at a multiple of 2.5 .
Quick Math...
| Pre-Acquisition | Post-Acquisition | |||
| Acquisition Revenue | $450,000 | Target Revenue | $3,000,000 | |
| EBITDA (%) | 25% | EBITDA (%) | 25% | |
| Distributable Cash Flow ($) | $112,500 | Distributable Cash Flow ($) | $900,000 | |
| Valuation Multiple | 2.5 | Valuation Multiple | 2.5 | |
| Acquisition Valuation | $281,250 | Target Valuation | $2,250,000 | |
Pilot Location Opportunity
We have identified an opportunity to acquire a non-operating location for less than $100,000 including equipment, supplies and complete build out.
We are inviting up to 10 investors to participate in this opportunity.
Funds Sought
We are seeking $250,000 for acquisition and operating capital.
Maximum Investment: $250,000
Minimum Investment: $25,000
Return on Investment
Due to the extraordinary cash flow generated by this business, we are able to offer:
- 9% interest (payable monthly) for 2 years
- Option to receive return of principal or convert to equity at 2-year anniversary
For Further Information...
For a Summary Overview of this opportunity, please click the link below.