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Rapidly Growing, Multi-Location Equipment Rental Company

Machinery

Client Number

62798

EBITDA

$6,600,000

Revenue

$24,000,000

Region

Southern U.S.

Contact Details

Andre Farahmandi

(972) 232-1140

afarahmandi@generational.com

The Company provides a diverse array of equipment rentals for large fairs and festivals, private and corporate events, construction and oil and gas projects, waste removal, and disaster relief as well as many related services. The event and equipment rental portfolio includes six main categories, port-o-lets, trailers and fencing, event rentals (tents, tables, chairs, etc.), construction heavy equipment rentals (generators, light towers, etc.), sanitation (roll off dumpsters) and disaster relief (portable toilets, cooking, shower, bathroom laundry trailers, etc.). The Company’s diversity is a major strength as it allows the Company to shift it’s focus as needed to keep utilization high and allow for the best pricing. BUSINESS HIGHLIGHTS Diversified Customer Base: Historically no single customer accounted for more than 12% of revenue. In 2020, there was a significant increase in disaster relief leading to two customers accounting for more than 12% of sales, but these customers are expected to return to normal levels in 2021. Strong Customer Relationships: Generates a significant portion of revenue through repeat business (78% of customers had multiple orders in 2020) from its existing customer base. Strong relationships with clients and the Company’s reputation for quality service are a driving factor of the Company’s repeat business. Additionally, the Company has multi- year MSAs with most key customers. Strong Historical Sales and Earnings Growth: Sales grew from approximately $22.3M in 2018 to $52.5M in 2020, a compound annual growth rate of 53.4%. EBITDA grew at a 68% compound annual growth rate and margins improved from 22.7% of sales to 27.3% over the same period. The Company’s market and equipment diversity allowed the business to not only survive Covid and its effects but thrive through it.

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