Jason Borr, representing Belmont Group alongside Christina, presented an exciting new business acquisition opportunity in the propeller manufacturing industry. Following a prior presentation on a flight school opportunity, Jason introduced this niche manufacturing business with consistent revenue growth and impressive financial performance. This company specializes in designing and manufacturing composite propellers for experimental aviation, airboats, wind tunnels, and UAVs, generating approximately $3.5 million in annual revenue with an adjusted EBITDA of $1 million. The business boasts a well-rounded team of 16 employees and a proprietary product line, making it agile and competitive in its market.

The business, currently run by a retiring couple, has significant growth potential. Jason emphasized the complementary skills of his partnership with Ben DuBois, who brings technical expertise to expand the company’s product lines. This mirrors the existing owner’s structure, where one partner focuses on engineering while the other manages operations. Opportunities for expansion include introducing dedicated marketing strategies, enhancing sales efforts, and adding a second shift to increase production. The company’s reliance on word-of-mouth and trade show marketing highlights untapped potential for broader outreach and scaling.

The business serves a diverse customer base, including experimental aircraft builders, airboat operators, and wind tunnel projects. Its proprietary manufacturing process provides a competitive edge, allowing flexibility and customization. With composites comprising a growing share of the global aerospace market, this company is well-positioned to benefit from industry trends. Furthermore, its non-certified propellers cater to niche markets outside FAA regulations, offering a unique sandbox for innovation and agility in product development.

Financially, the deal appears solid, though some concerns were raised about low inventory levels and cash on hand despite consistent EBITDA. Jason addressed these points by explaining the just-in-time manufacturing model, which minimizes inventory and speeds up production cycles. The business’s structure allows for minimal working capital requirements, making it a strong candidate for SBA financing. The asking price of $4.5 million slightly exceeds the enterprise value, but creative deal structures could bridge this gap.

The acquisition opportunity has drawn significant interest, with Jason receiving support and potential partnerships from members of the group. Industry veterans praised the deal for its proprietary product line, niche market positioning, and growth prospects. With a potential roll-up strategy or international expansion into markets like Europe or Australia, the business offers substantial long-term value. Jason remains optimistic about negotiating favorable terms and leveraging his team’s expertise to execute a robust growth strategy. This deal exemplifies the Belmont Group’s commitment to identifying high-quality, scalable businesses.

Full Transcript:

Alright. Good morning, folks. My name is Jason Borr on behalf of our little top co, for Christina and I, Belmont Group.

So, last time I was here with you folks, we presented a flight school opportunity. Really cool, really great response. I’ve appreciated the all the support I got from the group on that call.

Brief wrap up there. When we went back to the seller to close the gap on the twenty twenty three financials, got cold feet. But you know what? That’s okay.

We know this happens in the world of deal making, and, the luxury we have on our side is patience. Right? I live directly next door. I’m probably gonna see this guy out and about town, so we’re gonna go off and close a couple deals and then return to that.

And on the couple deals coming through right after I presented flight school, one of our proteges was kind enough to reach out and say, hey. You know what? I hear you like things that fly. I got this very cool opportunity.

Maybe you wanna check it out.

And we have. So, this opportunity is in the propeller manufacturing space, and they do a lot of very cool work in aviation, airboats, EBTOLs, wind tunnels, and UAVs.

So at a glance, just to give you an idea of the size and the scope, I got some great feedback from Toby that this would be a great way to sort of orient us. Year over year, we’re now in roughly, three and a half million, climbing consistently in terms of revenue. The adjusted EBITDA, still climbing pretty consistently around about one million, with an enterprise value of three dot two, just to give you a bit of the size and scope. Sixteen employees and a pretty healthy balance of those who can still engineer and design and do the layups, as we look towards what a transition might look like. So I you folks know me from the last call. I’ve got a bit of a background in aviation, done some cool work there. But when I looked at this opportunity, I decided I really needed someone with the technical chops to understand where we might, you know, take and grow this, this particular deal.

And, through this group, I was kind enough to receive an introduction to now my good buddy, Ben DuBois. He’s got great chops. And if you guys haven’t seen this guy on the seller call, he is something fierce. It’s fantastic.

So we struck up a call with the seller. Saw a lot of cool opportunity here with the kind of, shop that is set up currently and also more importantly where we can expand it. The cool thing about this particular mix between myself and my partner, Ben, is, it it mimics the current setup from which the owner is looking to retire. It’s currently he and his wife.

They are looking to retire. He runs the technical engineering side, and, his wife runs the operations. And that’s sort of where we see this this good partnership working. I would be able to handle the operations, which is gonna speak to the growth opportunities we’ll review.

And then Ben has a really good idea of, you know, how we could expand the product lines.

So a bit of an overview on the opportunity here. The core business is the design and manufacturing of propeller product lines and other special projects based on a common design platform. Our customer base is experimental aviation, airboat owners, both commercial and recreational, wind machines, wind tunnels, aerospace, and r and d.

When we come to the sales and marketing aspect, this is pretty traditional. We see this, pretty frequently in our world. They go to trade shows. There’s event sponsorship, but there’s no consistent major marketing efforts at this point.

They rely on word-of-mouth and a strong reputation that have resulted in steady sales. In fact, that’s where this business was born. Right? So the owner, he’s an aficionado himself, couldn’t get the parts he wanted at by the time he needed them at the quality he expected.

So he endeavored to build this shop, and, he’s done quite well for himself to this point. Some of the competitive advantages, he’s got a proprietary product line. They design and manufacture all of their propellers in house, and the in house capabilities and business size make the company agile. We’ll talk a bit more about that as a growth opportunity.

When you’re looking at sort of the product mix breakdown, you can divide it into three sort of swim lanes. You’ve got wind tunnels, which account for thirty percent and an average order size at, forty thousand dollars. You’ve got aircraft with an average order size of roughly ten thousand dollars, and that’s about forty percent of what they do. And you’ve got airboats with a, average order size of roughly two thousand dollars, and that makes up the, complimentary, thirty percent.

And you can see a bit of the product breakdown at at the top as well. You’ve got the airboat, you’ve got the ground adjustable, and then you’ve got the v three fifty, wind tunnels, UAV, which is drones, and, some of the engineering services. That’s a bit about how they’re billing what they do today.

If you wanna take a look at the, larger market, the graph to the right, it’s probably more, prescient for this conversation.

This is the domestic market, through which, the company serves. The market overview is good for context. Right? So composites through which we’re, delivering our product line today in aerospace make up fifty percent of the global aerospace market in twenty eighteen, and that market is predicted to reach thirty billion by twenty twenty five. So we’ve seen a nice consistent growth. Nothing too crazy, but consistent is good.

Aircraft engine and parts manufacturing, that industry is worth roughly two hundred and eleven billion in the US and includes some of the household names that we know and love, Boeing, Lockheed Martin.

Propeller manufacturing, that’s, contextual because that really speaks to the kind of niche that this business is serving. Right? So you’ve got two major segments. You’ve got certified propellers, which are type rated, for your Cessnas, your Pipers.

It’s heavily regulated by the FAA. And then you’ve got non certified propellers. These are used in experimental aircraft or non flight applications. They’re not under FAA jurisdiction, which gives us a little bit more room to to play in our sandbox, essentially.

And this is really a cottage industry with only a few name brand, manufacturers. And that’s what we’re seeing on the right. Right? I’m receiving some feedback that this color story wasn’t really popping, so we put this deal in hot pink.

And you can see right to the left and right, there’s a couple opportunities to think about expansion. And then, for those of you familiar with the manufacturing industry, you’ll notice a couple of the larger, more household names there, within the same space that we’re playing when it comes to specifically, propeller manufacturing.

So where are we gonna take this? We had some great conversations with our seller to this point. Really cool work that we get to do here.

But to this point, our seller’s tired. Right? They’re working some long hours. He and his wife, he’s looking at an exit.

And with that, you know, sort of, you know, thinking about what he’s done at this point and where he would take it if he would, you know, if he had the resources, if he had the time, more importantly, and the energy to do that. And one of the interesting components is on the left. Right? We talked about this a bit at the beginning of the slide deck.

Yes. That plane is upside down. You are seen correctly, and that’s because we serve some of those folks who participate in acrobatic flight. Right?

So, among them are some pretty key influencers in the space, that use our product line, and we haven’t really capitalized on that opportunity to this point.

It gives us some good leg room for actual dedicated marketing efforts and some, pretty cool content generation if you ask me. An additional point is about the team leadership and expansion. I and this is sort of where, where I’ve got a lot of experience to bring to the table, both in operations in, aerospace and aviation manufacturing and both in just, you know, good old fashioned team leadership, which I’ve done throughout my life.

Talking with our, seller, he he really feels that with proper structured team leadership, you could actually do some pretty exceptional stuff, including bringing on a second shift. That along with a new product line or other growth opportunity to the right may be enough to see a a growth opportunity across the next two years of roughly seventy percent if we brought on a second shift before we make any, significant CapEx investments in the business. Right? Which is good for us to know if that’s all human capital we can bring in and expect to grow roughly around those ranges. It it sort of validates what Ben and I were thinking would be a pretty robust growth strategy for this, cottage shop down here with us in, California.

That notwithstanding, if we look at the growth year over year and we, leverage in a a growth rate of six point five from twenty twenty eight, we see a nice consistent growth trajectory. Again, this is without, any of the the growth strategies that we’re planning to implement once we move in. So if everything was held constant, we expect to see this grow, year over year, grow nicely and consistently into a five million dollar business. That six point five growth rate is factoring in the the multitude of industries in which we play. So that would be airboats, aircraft, and wind tunnels, and that’s sort of a a nice blended and consistent average for what we’re looking to get. So, a good consistent growth pattern even ahead of anything we wanna bring to the table.

With that, I’ll take us to the one sheet.

Alright. As we discussed a little bit about the business, propeller manufacturing is our niche. It’s a relatively cottage industry.

We, have five clearly defined product lines that we’re currently king catering to. Definitely some expansion to move out even far out from the, propeller manufacturing within the aircraft space. There’s a lot of runway here to consider what we might do in automotive, another area where I’ve got a lot of experience.

Locations in California, we’ve discussed some of the growth opportunities. One of the threats, of course, is these products can be reverse engineered, by some of our competitors and and sort of reproduced.

We’ve got the asking price at four dot five, and there is a bit of a delta between that and the enterprise value that we’ve reviewed, coming in at at roughly three dot two.

We do feel that Can you blow that one sheet up a smidge?

Yeah. Great feedback. Appreciate that, Jeshua. How’s that working for you?

A little bit more, please.

Yeah. You got it.

Maybe go full screen on it. That might be part of the problem.

Actually, it’s starting to cut off. Yeah. So I think you need to go full screen on that one sheet and then zoom back out.

There you go. How’s that working for you?

Just a hair more. We’re still cutting off.

There we go.

Yeah. That’s better.

And you’ll have to scroll up and down just a hair. It’s cutting off the bottom a little bit, but you can see the side’s good. There we go. Perfect.

Thank you.

Yeah. Right on. Appreciate you. Very cool. So as, we saw a little bit of this in just reviewing the initial slide of the scope of the deal, a nice consistent growth.

Definitely some room to to bump up the EBITDA to to reflect the kinda consistent growth we’ve seen in top line revenue across the bottom line as well. The MUD score at this time, so this is an interesting point. He is looking to retire, but he’s also tired of running the business. Right?

Like, there’s actually some room here to keep him on and just let him draw and start to feed into some of those new product lines if we were to step in and and, you know, handle some of the day to day operations. We’ve got a partner who’s very savvy in the kind of, you know, drawing that would be happening here and a lot of room to to bring some of these things to light. We do expect as, you know, the exit and the acquisition go on that, you know, something we see is you start to get a little taste of what that retired life has looked like. You’ll, eventually trend in that direction, and that’s another good point to bring up.

There’s a lot of room to educate our our seller here as to the different advantages of what we now know to be the primary means of of exiting, which is the annuity deal. And so that’s something we definitely wanna bring to the table in terms of an offer structure, especially if you’re looking to stay in the business to continue some of your drawing. We feel that there’s a lot of room to come in and say, hey. Over the next year, we’ve got a lot of cool growth opportunities.

We know where we’ve been and where we would take it. If you wanna stay on and draw, we think this is a compelling way for you to sort of be part of an earn out and also help us transition the business.

Upfront, the initial expectation, this is a broker deal. So they’re thinking more eighty five percent cash at close, and then seller note to handle the rest. Certainly something we can present in an offer structure to say, hey. If you want with the SBA, this is what it would look at like, but if you’re really looking towards some some tax efficiencies and and a little bit more of what you’re hoping for in the asking price, the annuity deal is what we are. And with that, happy to open up the floor to questions, and always appreciate the great feedback I get from this group.

Awesome. Nice presentation.

Thank you.

Anybody have, any questions to start? I mean, I can give you my thoughts. I think it’s a good deal. I love niche manufacturing spaces, personally, just because I feel like there’s generally not a a lot of competition that comes in, which is, in my view, other than execution risk, competition risk is always the second biggest risk to me.

So I I think the competition risk is relatively low. I think it’s, you know, the margins look like that of a manufacturing business. I would say the margins are tight, but generally margins are pretty tight, on most manufacturing businesses. And the price looks at a fair multiple.

I mean, do you have plans to grow it? Like, if you’re gonna buy it, what are you thinking about doing? You know, where are you gonna take the business? Are you gonna grow it?

Are you gonna roll it up? Are you gonna, you know, try and sell it? What what’s your plan?

Yeah. It’s sort of a a dual strategy as well. Alright? So we’ve got three swim lanes that we really know we can grow the business within.

Right? So there’s the marketing aspect, dedicated marketing, dedicated sales. There’s team structure, so we can build the team, put in the second shift, and potentially grow the top line revenue by seventy percent before any CapEx expenditures. And then there’s the idea of new product lines for which, Ben, myself, and, the owner on the right earn out schedule are really prepared to deliver against.

We also think that given the location, the more we move our seller to this, you know, nice, you know, ideal retired life, the more the network in the local community is gonna see what was done here. He’s really into the local community. So we feel there’s a good audience to continue growing and expanding the business ahead of an exit within probably, like, five years.

Hey, Donnie. Talk a little bit to the, add back and take backs adjustment?

Looks like you’ve got some take backs for twenty twenty two that pulls the EBITDA down, but there’s a good number of add backs in both twenty twenty and twenty twenty one.

Yeah. That was, essentially, something that they were doing for, their retirement play, up against, and we had to to take that back.

Hey, Jason. This is Jeremy.

Hey. I Jeremy.

I love this deal. So this this is where I started my m and a career in the the aerospace industry. So, with a company called TransDigm, and they we started acquiring companies like this, and, we IPO’d. We’re, like, fifty dollars a share price. Probably ten, twelve years ago, they’re now eight hundred dollars a share price now. So there’s a lot of opportunity, in m and a.

I think, you you know, the the one thing I would look at is really understanding, how much of the business is proprietary sole sourced, you know, products.

Because if that’s a majority of the business, a four, four and a half multiple on this type of business is is a steal.

You know, I I think that’s completely completely reasonable. I’d also wanna understand the, kind of the the breakout between commercial and government, what what those, what those percentages look like between the the two different, two different sectors.

But but, yeah, this is the exact type of business that we’re actually looking for in in Kings of Deals. So if you do need help, getting us across the finish line or financing or something like this, this would fit in with, you know, exactly what we’re what we’re looking to do in in Kings of Deals in the manufacturing sector. So let me know if if you need help or anything like that. So, definitely interested in talking.

I love this deal. Right? This is an absolutely amazing deal. It’s just, it’s just not worth four point five million.

I’m probably around the four and a half sorry, the three and a half million dollar mark. I I think Jeremy’s right. Four to four and a half times multiple of the average adjusted EBITDA less the three hundred and ninety thousand or whatever it is of, of working capital deficit. The good news is if you did go down the SBA route, you can raise that as an additional loan.

So I’m, yeah, I’m I’m I’m at around three point six million for this deal. What I would do, actually, is I’d this is a classic two offer deal structure for me. I’d I’d go in in the low threes on an SBA and maybe something, in the high fours, low fives on an annuity type deal structure. But looking at and I missed the start. I was driving, back from a meeting. The the MUD score doesn’t seem high enough for me to do an annuity deal.

That that’s very, very average MUD scores. And and whilst the, the, the lever score is is super high, that might help you.

But the the the problem, Jason, with a business like this is this is an absolutely great business.

Everyone’s gonna wanna buy this.

So I’d be extremely surprised if he did an annuity deal.

Someone loads of people are rolling up in this space. There’s loads of trade buyers in the market for this space.

Yeah. I’d be very surprised if he didn’t get something high threes, low fours on on an SBA type type deal, and the SBA would like they’d lap this up. You you could probably get this for a five percent equity payment.

Like, this this this is this is what the SBA would call like a best in class deal. It’s growing.

The margins are decent.

It you know, it’s doesn’t have a lot of working capital inside of it, but but that that’s okay.

You can raise for that.

Look at all the green. Look at all the ratios.

You know, it it’s it’s got doesn’t have a lot of customers. Right? But at the end of the day, like, if you look at the market, I I I think ten, you know, ten percent average customer, of revenue and only thirteen percent for the top one. Yeah. I’m not not overly worried about that. So I’m not overly worried about that. Just just check your number of customers, ten.

That seems low to me because if thirty four percent yeah. You’ve got concentration top ten customers, thirty four percent. So I’d be expecting, you know, fifty to a hundred customers. You might have missed a zero off that.

But I I I love this deal.

But I I think you’re gonna have to pay a decent valuation to get it.

Where are they where are they in the process, Jason?

As far as other offers on the table? Yeah.

Yeah. No other offers have been presented at this point from what I can tell in in speaking with the broker and the seller. We’re one of a few interested parties here, which is, to your point, surprising.

Yeah. Well, that tells you, though. Do you know what that do you know what that tells you?

It’s a really shit broker.

Right? If they were a real broker, and instead of listing the business on the website and just sitting back waiting for it to kind of happen, if if if they looked at this business and basically came up with the buyers list and thought, well, okay. Who are the who are the family offices and PE funds doing roll ups in this space? Let’s go talk to those guys.

Who are the corporates within fifty to a hundred miles of this location that are, I I would say, probably ten to fifteen million or higher revenue, may maybe something less than fifty.

Like, literally should be out there hitting these guys up. You could create a buyer list for this business that’s probably gonna have at least fifty to sixty names on it. Like, you’d get ten offers. Like, if I if I was the broker on this deal, I could get more than four and a half million dollars for it. I’m telling you right now. Great. Fucking great business.

Really good business.

Good job.

Thank you.

Alrighty. So I’m a I’m a big, big green light on this. But, yep.

Sorry to hijack, Kyle and Jeremy.

I’ll let I’ll let you guys run the first deal. I wanna run the second one with Rick Nolan because it’s linked to something we were doing on the advanced track. And then, unfortunately, at five o’clock, I have a sell call, and then I have another one at five thirty. So I’m gonna miss the last one, but we’ll have David Jewell go last because I literally reviewed this deal yesterday.

So I don’t need to be on that. So, I had a one on one with him, on this. So, alright. Kyle, Jeremy, I’ll let I’ll let you handle q and a and everything for for this, but I love it.

Perfect. Let’s see. Who we got up here? John, you got your hand up. What’s up?

Yeah. I noticed the inventory looks low at three thousand five hundred dollars only.

Yeah.

So So, Jason, I think John’s asking the inventory only shows thirty five hundred dollars, which is, you know, probably low for for manufacturing companies.

So have you looked into that at all?

Yeah. I’m I’m checking in on that number. I’ve got a call set with the, seller later today as well.

They they probably so they make propellers. Right?

Yep.

So they they probably because they’re probably custom it’s it’s probably a custom thing. Right? And, you know, and an Andrew Lam has just typed in the chat exactly what I was gonna say, but I’m gonna give him credit.

They’ve probably got just in time manufacturing. So they’re making this stuff bespoke to me.

But they’re probably getting the stuff in and turning these things out quite quickly. I’m guessing this type of business has got quite a short manufacturing cycle, which is this isn’t the business where, you know, they’ll they’ll make a bunch of these and they’ll put them on a shelf in a warehouse and wait for the customer to kinda call them off. But the these are all gonna be very, very bespoke.

Yep.

Yep. And that’s why your AR that’s why your AR is really small as well because this is b to b, obviously.

You know? Yeah. Individuals like us don’t buy propellers unless you’re on a plane.

But, you know, so so this is a b two b. And and if you look at the accounts receivables, it’s less than sixty grand on three point six million dollars of revenues. So it’s five point seven days. Right? So Mhmm. This is minute this is this is, you know, defense department contracts, airplane manufacturers, boat manufacturers.

They ain’t paying you in six days. They’re paying you in sixty days or maybe longer. Right? So, so this is all bespoke stuff, and I’d be very surprised if they didn’t take at least some of the payment upfront. Do you have prepayments on the balance sheet? One of the things I’d look for in the balance sheet, and, Jeremy, I’ll let you speak to this, is there might be a prepayment number.

And what you wanna make sure is they haven’t spent that cash because there’s not a lot of cash in this business, and then you’ve gotta fulfill all of those orders because they’ve already spent the money.

Yep. Here’s my here’s my big question for you as well linked to this. Right? Where’s all the cash gone?

They’ve generated two and a half million bucks almost in EBITDA over the past over the past three years, and they’ve only got three hundred grand in the bank. Where’s all where’s all the money gone? If are they taking, like, massive distributions every year? Is that what they’re doing?

That’s a great question. I’ll have to follow-up on, our call this afternoon.

Yeah.

Yeah. Okay. So and then here’s the other thing linked to this. You know what you’ve made you’ve made an adjustment here for the working capital.

So what we have the way this one sheet is designed, it’s, it it’s averaging across every industry. Right? Because there isn’t a one sheet for every sector. It’s averaging across every industry that really in a deal, you wanna have two months revenue in in networking capital.

So cash plus inventory plus AR, SAP. Right? Now in some industries, you don’t need that much. And then when you’ve got businesses like this where I know for a fact because they have little to no inventory and they have little to no AR, these guys, the these guys are basically making to order.

They’re probably getting cash flow upfront to fund, like, the the bill of materials.

A business like this doesn’t need two months of working capital. Keep that up your sleeve for your negotiation.

But if you end up doing this deal and, you know, the the four hundred grand of deficit of working capital isn’t factored in, I wouldn’t worry about it. I don’t think this is a business model that needs a lot of working capital. It’s like looking at an ecom business. Right? I mean, you only look at an ecom or a business like DealMaker, for those of you that are investors now or will be soon to be investors in this business.

Like, we we need pretty much zero working capital. Right? Because when everybody buys the program or everybody buys an ecom product, they’re paying for it, like, when they buy it. So with your merchant cash account through your bank, like Stripe or whatever or PayPal, you’re you’re getting all of that money within twenty four hours, and then you’re paying for the product on terms. You’re paying your employees twice a month, and then you’ve got other vendors and suppliers.

So in a business like ours and then in, like, an ecom business, you’ve always got a positive cash conversion cycle. In a in a b to b where you’re you’ve got AR and you’ve got AP and you’ve got all these different things, if if you’re not collecting the cash in from the customer faster than what you’re paying out for everything else, you have a negative cash conversion cycle. And the more you grow a business like that, the more working capital you have to have in the tank to be able to go to that speed.

Whereas if you’ve got a business with a positive cash conversion cycle, you don’t need additional working capital necessarily to actually hit the afterburners and scale. So that that’s what I would be focusing on, for sure. And, yeah, Jeremy, I would love to partner on this deal for Cody. Oh my god.

Like, good find.

Yeah. Absolutely. I love this business.

You know what makes me so proud? Jeremy, do you know what makes me so proud about Protege?

I’m thinking finding these deals beyond.

That is what makes me super proud. The Jason and your last deal was awesome, by the way.

You’re finding, like, I mean, incredibly good deals. This is what the this is what a really good deal should look like. And even though it’s a broker deal, I gotta tell you, I don’t think the valuation’s, like, crazy. It’s not. Mhmm. Four and a half times multiple on on a million bucks of current year EBITDA in in aerospace.

That’s not bad.

And Right. The the reason I said, you know, four and a half is still if this stuff is sole source, that means a lot of this a lot of these parts, you have to go through the FFA or FAA to to get approved, and that process can take up to three years. So if it’s a sole source product product and nobody else is doing it, you’ve basically got a monopoly on the market with what you can do. Nobody else is gonna come in and and replace you. And if they do it, it it cost a ton of money to to do that. So that’s the that’s the key to these types of businesses, and people will overpay for them because of that.

And it’s proprietary. Right? And and look at what they do. It’s composites.

Right? Within ten years, composites will be eighty, ninety percent of this industry. Right? Yeah. And this is a sole source company.

What an incredible deal. Can I can I upgrade my score from Greenlight seventy five? I’m gonna upgrade it. This is an amazing business.

So, yeah, Jason, if you wanna do this on your own or with other projects, I will applaud you from the Zoom every week. But if if if this gets big boyish pants and you wanna partner, man, we got capital. We we can do this with you, like, in a heartbeat.

Amazing. I really appreciate that.

Deal. Good job. Any other questions, guys? Let’s hit the chat. Who else has got a question on this stuff?

Maybe Toby’s in this space. Toby, you wanna give us your comments?

Yeah. Toby. What what a great deal, man. You know, you’d buy this, wouldn’t you?

I would.

I was I was the, the nine one one coach for this, deal review, and I loved it from the beginning.

I I actually when he started the presentation, I said, you know, I could smell the fiberglass as you talk about this because I’ve been to one of these facilities.

And, I I think there’s prime opportunity to buy those other two to roll this up with those other twos that are about the same size as him, and, and then to go after one of the bigger ones and to own half that market.

I I I do remember it was all non defense, so they’re not they’re not making anything through the, through the military, and so they can expand in that direction.

And, also, with all of the talk about the the the jets and flying cars that we’re gonna have, they’re all gonna need propellers just like the ones these guys make.

Mhmm.

So all those start up businesses are are gonna consume a lot of product whether they, whether they actually get to market or not.

Yep. Yep. Okay. I love it.

That’s a big thing.

Couple of questions I’ll just hit real quick.

Question from, Dave Evans. Would you look to expand this into other countries? I absolutely think you could. Australia’s nuts for carbon.

You know, UK, you know, if you if you head up some of the UK, companies in this space, I think this is definitely a good thing. Dave, you mentioned Airbus in Europe. I’ve not I’ve never seen a propeller on an a three eighty. Might be wrong. I’m kidding you. But, yeah, there’s there’s loads of European and British companies I think would be a great market for this. I’m guessing, though, the way I would do that is I’d acquire a company in that location.

Or if you didn’t wanna do that, I’d license this out to them, because, obviously, these things are gonna be crazy expensive to to ship. What where’s the, where’s this manufactured? Where where’s the where’s the site?

Yeah. We’re down to Southern California.

Oh, right. Okay. Yeah. Yeah. So you wouldn’t fly these things from Southern California, and it’s too expensive. It takes too long to kinda ship them. So Right.

You’re you’re fine moving around the US, Canada, maybe into South America. But I think if you if you wanna penetrate Australia and Europe, I I would just have a facility over there.

I’d I’d call Garland and have him go and find one of these guys in in Germany, because, you know, Germany is the best engineering Mhmm.

Tree in the in Europe, in in my opinion.

So that would be really, really cool. And then there was a question on the numbers from, let me go back through Rodney.

Rodney’s asking, should we be doing the trailing twelve months or just the last three, four years? So that’s a really good question.

So, obviously, you want you want y minus two and y minus one numbers. Of course, you do. Right? If you’ve got full year twenty twenty numbers, which you should have this time of year, but then what you should always be looking at, Rodney, is either a trailing twelve months number or interim financials.

So, you know, we’re we’re towards the end of October now. So any business that you’re looking at should have numbers through till the end of, September. So that’s three, four quarters.

And then what you can do is you can just gross those up. Right? So you’ll take twelve nines of those numbers. But then if you have monthly management information, if you’ve got monthly numbers for last year and you’ve got monthly numbers for this year, and you know roughly what the growth is across all the other different months, you can adjust the the kind of forecast, you know, on on that basis.

And you’ll know what the margins are so you can calculate with with a fairly high level of accuracy what the EBITDA is gonna be as well. Right? Obviously, depreciation, amortization doesn’t really get baked into the books until, you know, the full year end, but, you know, you’ll be able to spot spot the trends. So that’s that’s how I would do that.

And then I don’t think we’ve got any other questions.

But, but, yeah, get your get your votes in, guys.

Really good deal. Good luck. Reach out if you need more help or reach out if you wanna if you want a funding partner for this. But, man, the SBA is gonna, like, be all over this. Like a cheap like a rat up a drain pipe, as we say in the UK. We’re all over this deal. This is a phenomenal, phenomenal business.

Hey, guys. I’m Carl Allen. I’m the founder of DealMaker World Society. I’ve done tens of billions of dollars of deals over the last thirty plus years.

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