How Private Equity Adds Value What Successful
The Start of a Great Partnership
Dwyer Working with Riverside The Company
Riverside’s Growth Strategy
• 12 service-based franchise concepts • 2,500 franchises • 10 countries
• 3 million customers
Add-on acquisitions Germany 2014 Utah 2015 Michigan 2015 Canada 2015 UK 2015
Rainbow International Five Star Painting Molly Maid, Mr. Handyman & Protect Painters Grounds Guys Canada Drain Doctor
• Add-on acquisitions new concepts, and new geographies. • Improve sales and service, particularly digital/online innovations. • Grow existing franchises • Use technology to drive operational improvements and profitability.
Preparing for a Transaction • Prepare 12-24 months in advance • Capital Need – majority or minority transaction – Or who will run the business going forward? • Carefully Think Through Projections – Will projections hold up when potential investors digs in?
• Ensure All Reports Reconcile to Each Other - 3 years detailed financials – Most companies are valued based off of a multiple of EBITDA • Time commitment – Typically 6 months or more
Private Equity Due Diligence Process Deal Origination
Due Diligence, Refine Projections
Initial Assessment
Documentation
Initial Valuation
Management Meeting
Investment Committee Memorandum
Funding
Closing and Capital Calls
How Private Equity Adds Value What Successful Private Equity firms do: • Help owner entrepreneurs build bigger and better companies • Partner with management teams – Establish a board of directors – Operating partners to help as-needed • Grow businesses – Help business win new customers – Assist with geographic expansion • Add resources and hire additional employees – Build out Sales & Marketing team – Ex. Riverside has a Toolkit • Assist management with improving operational efficiencies
Dwyer Working with Riverside The Company
Riverside’s Growth Strategy
• 12 service-based franchise concepts • 2,500 franchises • 10 countries
• 3 million customers
Add-on acquisitions Germany 2014 Utah 2015 Michigan 2015 Canada 2015 UK 2015
Rainbow International Five Star Painting Molly Maid, Mr. Handyman & Protect Painters Grounds Guys Canada Drain Doctor
• Add-on acquisitions new concepts, and new geographies. • Improve sales and service, particularly digital/online innovations. • Grow existing franchises • Use technology to drive operational improvements and profitability.
Preparing for a Transaction • Prepare 12-24 months in advance • Capital Need – majority or minority transaction – Or who will run the business going forward? • Carefully Think Through Projections – Will projections hold up when potential investors digs in?
• Ensure All Reports Reconcile to Each Other - 3 years detailed financials – Most companies are valued based off of a multiple of EBITDA • Time commitment – Typically 6 months or more
Private Equity Due Diligence Process Deal Origination
Due Diligence, Refine Projections
Initial Assessment
Documentation
Initial Valuation
Management Meeting
Investment Committee Memorandum
Funding
Closing and Capital Calls
How Private Equity Adds Value What Successful Private Equity firms do: • Help owner entrepreneurs build bigger and better companies • Partner with management teams – Establish a board of directors – Operating partners to help as-needed • Grow businesses – Help business win new customers – Assist with geographic expansion • Add resources and hire additional employees – Build out Sales & Marketing team – Ex. Riverside has a Toolkit • Assist management with improving operational efficiencies
