Commercial Landscaping Maintenance Platform

Strata is a team of commercial landscaping veterans with over 50 years of experience that have joined forces to acquire well-run maintenance companies in the West and Southwest U.S. Strata currently has two companies under LOI and is expecting one more by the end of November. These three opportunities alone represent $30 million in revenue and over $6 million in EBITDA, with an additional pipeline of more than $60 million being actively worked. All of these deals are proprietary and not currently marketed or represented by brokers. The average acquisition multiple thus far is 5x EBITDA and future bolt-on acquisitions should be in the 3-4x range. Commercial maintenance companies sell for 10-12x once they reach $10+ million in EBITDA. The founders are seeking an equity partner that believes like they do that commercial landscaping maintenance is a proven cash-flow business that’s also ripe for both automation and electrification over the next 3-5 years. Many communities and states are banning gas-powered equipment for both pollution and noise reasons. Electric equipment is also lower maintenance and provides a sales and marketing benefit. However, it’s not cost-effective to make the transition all at once so Strata has developed and previously executed a detailed plan for managing this transition. One part of that plan includes not only electrification of equipment but the automation of a portion of the mowing.