Owners of oil-field services company (3-D seismic) sought to aggressively grow the company from ~$16mm in revenue and ~$4mm in EBITDA in a volatile and competitive market. Necessary equipment to scale was valued at double the balance sheet of the company.
A two-company approach was developed, raising funds for both to accomplish growth strategy:
Company 1 doubled revenue in the following 36 months and increased EBITDA ~350%. Debt of both companies was retired and equipment purchased back into operating company for depreciation purposes. Investor realized 20+% IRR and retains 25% equity of organization while founder and management team were able to take distributions in excess of $2mm collectively.