Invitation

Accredited investors:

I wanted to invite you to learn about a unique business acquisition opportunity I’m intending to invest in.

Note: This is a fully passive investment opportunity and I will be a passive investor, not management. 

The acquisition target is a bioremediation company based in North Carolina. According to the sponsors:

• The company has a proven, proprietary technology and a 20-year history spanning 40+ projects across 16 states.

• The sponsors of the deal have a strong track record with multiple successful acquisitions and investments under their belt across niche environmental services, restoration, and more. 

Quick summary:

• Equity Target Raise: $2.5MM

• Target Annual Cash-on-Cash Return: ~50% average

• Target Investor MOIC: 9.84x

• Structure: 15% common equity at a ~$16.7M post-money valuation

• Target Payback Period: 3 years

• Target Investment Period: 8 years

• Capital Distributions: Annual

• Target Close: Feb 3, 2025

• Minimum Investment: $50K

Note: While I have investigated this investment, you should not rely on my investigation and must do your own. The information provided here is true to the best of my knowledge but I have no duty to further update this information. I’ve decided this investment is appropriate for me, but it may not be for you. You should consult with your own advisors and legal counsel.

Here’s why I’m investing in this deal:

• There’s a large amount of contaminated land (1M+ properties) that’s too costly to remediate traditionally, leaving prime real estate undeveloped. As cities grow and need more land, cost-effective ways to clean up contaminated sites will become increasingly in demand.

• Based on my ongoing investigation to date, the acquisition target has developed a unique proven proprietary technology that allows them to remediate these properties at 2-10x less than conventional methods. Impressively, this technology has never failed to achieve a site’s mandate in its 20-year history spanning 40+ projects, remediating 260K tons of soil across 16 states.

• I believe the demand for more cost-effective bioremediation is evident in the strong pipeline supporting this investment of a potential $11.4M in project revenue that could generate $4.2M in distributable income at a 37.3% margin.

• The sponsors have already developed relationships with a number of city and county officials who have large lists of potential additional properties that require remediation and could quickly be added to the pipeline.

• I believe that the fact that the founder of the company being acquired (a retired chemist) is maintaining 40% equity in the business post-closing is a great sign of his faith in the future of the business and the sponsors' capabilities.

• In my opinion, the sponsors who are seeking to acquire control of the business have a strong track record with multiple successful acquisitions and investments under their belt.

• I’m excited about the sponsors’ plan to shift the business from a subcontractor to an owned real estate model where they will acquire, remediate, and resell “shovel-ready” property. Not only can this reduce time and cost, it has the potential to generate more profit for the business.

I’ve gotten permission from the sponsors to share with the SMB Deal Hunter community the link to the data room provided to me. You must be an accredited investor to participate. 

If you’re interested in learning more, request an invite to look at the data room:

Note: While I have investigated this investment, you should not rely on my investigation and must do your own. The information provided here is true to the best of my knowledge but I have no duty to further update this information. I’ve decided this investment is appropriate for me, but it may not be for you. You should consult with your own advisors and legal counsel.

Thanks,

Helen Guo

P.S. I’ll also be inviting those who have requested more information above to a private webinar where I’ll be interviewing the sponsors of this deal with an opportunity for Q&A on Wednesday, Jan 22.