CCP Client 'CO309'
Geotechnical Engineering, Materials Testing & Special Inspection Company
Clayton Capital Partners is pleased to exclusively represent CO309 (the “Company”) in the sale of its business. The Company is a successful geotechnical engineering, materials testing and special inspection firm that provides services to contractors, government entities and commercial developers. It operates multiple offices and laboratories from its headquarters in the Intermountain West.
• Five-Year Compounded Annual Growth Rate in Revenue of 20% and EBITDA of 24% – Since 2015, C0309 has grown from 60 to over 160 employees, and from two to eight offices, six of which provide laboratory services. Over the same period, its revenue has increased from $8.5MM to $18MM (2019 projection), and EBITDA has more than doubled to reach $4MM+ (2019 projection). One of the primary contributors to this growth is the Company’s aggressive recruitment of individuals with strong strategic relationships.
• Consistent Winning Records in New Business and Market Expansion – Aggressive bidding and marketing, a strong brand and numerous long-term customer relationships are the foundation for the Company’s stellar record of winning new business and expansion into new markets. Annually, CO309 submits an average of 500 bids (i.e., solicited bids, RFPs and bids submitted on an exclusive basis upon client request), and wins approximately 30% of solicited bids. It maintains deep working relationships with leading architects, general contractors, building owners and government entities. In addition, employees provide problem-solving and technical expertise from multiple offices and laboratories that are strategically located in high growth areas. The result is a January 1 project pipeline (for the past five years) of contracted work that constitutes between 80% and 120% of annual revenue. CO309’s 14 portable laboratories are deployed to specific job sites to provide services and simultaneously gather valuable competitive intelligence necessary to assess the viability of establishing a permanent office(s) in the new market area(s).
• Planned Expansion to $50MM in Revenue – C0309 plans to continue to grow organically and, with investment from a successful partner, acquire four to five companies with gross revenue of $5MM to $7MM over the next five years. Target acquisitions will enable the Company to: 1) further expand into high growth areas; 2) add technically experienced individuals who have significant customer relationships; 3) grow current market share; 4) increase its current customer base of over 900 customers; 5) increase the number of long-term contracts of two+ years; and 6) diversify its services beyond construction services. With over 130 years of combined experience in construction and operating businesses, CO309’s management team is responsible for the Company’s past progress and looks forward to participating in future growth and success.
| CO309 Financial Highlights | |||||
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Forecast Year Ended 12/31/2019 |
Audited Year Ended 12/31/2018 |
Audited Year Ended 12/31/2017 |
Reviewed Year Ended 12/31/2016 |
Reviewed Year Ended 12/31/2015 |
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Revenue
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$18,081,695 | $16,195,168 | $14,288,728 | $11,277,949 | $8,508,497 |
| Adjusted EBITDA | $4,001,514 | $3,278,998 | $3,028,235 | $2,154,861 | $1,749,438 |
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Adjusted EBITDA %
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22% | 20% | 21% | 19% | 21% |
The undersigned hereby agrees:
That all information, data and materials disclosed or furnished (herein called the Information) by Clayton Capital Partners Acquisition Candidate CO309 (herein called the Company) will be maintained strictly confidential and that, in consideration for such disclosure, no use of the Information will be made by any signing party, or employees of such party, other than for evaluation purposes, on a strictly confidential basis. No Information shall be provided to employees not directly involved in the evalution of the possible transaction.
It is understood that disclosure of any of the Information, including the possibility that the Shareholders may consider sale, disclosure of the current status of the Company, or disclosure of any information to customers, vendors, competitors, or employees of the Company would cause serious financial damage to the Company and/or its affiliates.
The undersigned also agrees that, for the term of this agreement, they will not solicit for employment any person who is currently employed by the Company. Nothing herein shall preclude the undersigned from hiring any employee who responds to a general solicitation so long as it is not targeted at the Company or its employees.
The undersigned agrees not to copy, duplicate, disclose or deliver all or any portion of the Information to a third party or permit any other third party to inspect, copy or duplicate the same except those parties deemed necessary by the undersigned to evaluate the possible transaction (including agents, advisors, affiliates, accountants, attorneys, consultants, and lenders). It is understood that the undersigned may disclose Information to only parties who (i) require such material for the purpose of evaluating a possible transaction and (ii) are informed by the undersigned of the confidential nature of the Information and agree to be bound by the terms hereof. The undersigned further agrees to be responsible and to indemnify the Company for any breach of this agreement by the above mentioned parties, and that these parties will not use any of the Information for any reason or purpose other than to evaluate a possible transaction or in any way detrimental to the Company.
This shall not, however, prevent the undersigned from disclosing to others or using in any manner:
- Information which has been published and has become part of the public domain other than by acts or omissions by the receiving party
- Information which has been furnished or made known to the undersigned by third parties as a matter of right without restriction of disclosure, or
- Information which the undersigned can show was already in its possession at the time it entered into this Agreement and which was not acquired directly or indirectly from the Company, their representatives, its employees or their representatives.
This agreement shall remain in effect for a term of two years from the execution date hereof and upon request, the receiving party will promptly return all data and materials furnished by the Company and destroy any internal analyses and/or workpapers related to the evaluation of the Company. Notwithstanding the foregoing, the restrictions and obligations of this agreement relating to the non-disclosure of any of the Information shall survive any expiration, termination or cancellation of this agreement and shall be binding upon any signing party, its officers, directors, members, employees, agents, affiliates and any and all others assisting in the evaluation of the possible transaction.
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