Featured Case Study

From Regional Manufacturer to $165M Platform Exit

How a founder-led business was transitioned into an institutional platform—driving EBITDA from $8.5M to $19.5M and creating ~$90M in total founder liquidity.

Initial Value
$61.2M
Platform Exit
$165.7M
EBITDA Growth
2.3×
Founder Liquidity
~$90M

The Founder's Transition

David Harrison began his journey as a machinist operating two manual machines in a small rented workshop. Thirty years later, the company he built had become a thriving precision manufacturing business producing $8.5M in EBITDA.

It was successful by any measure. But when evaluated through the institutional lens, significant opportunities for transition emerged. The business had reached a plateau where scaling further required institutional capital, scalable systems, and strategic clarity.

The Initial Transaction (The Foundation)

The business was initially acquired by a private equity firm to serve as a platform entity capable of supporting aggressive bolt-on expansion.

Acquisition Multiple
7.2× EBITDA
Total Enterprise Value
$61,200,000

Post-Transaction Ownership

  • Private Equity Firm~70%
  • David Harrison (Rollover Equity: $12M)~30%

The Value Creation Engine (Years 1–5)

Following the acquisition, the company ceased operating as a standalone regional manufacturer and executed a disciplined platform expansion strategy. The goal was to build scale, expand capabilities, and drastically increase market reach.

Bolt-on Acquisitions

Three precision manufacturing businesses acquired at an average multiple of 5.5× EBITDA.

+$7.5M EBITDA

Organic Growth

Strategic realignment and aggressive market expansion drove significant organic top-line scaling.

+$2.0M EBITDA

Synergies

Consolidation of systems, unified leadership, and joint-purchasing power created massive efficiencies.

+$1.5M EBITDA

The Platform Exit

After five years of disciplined execution, total EBITDA had expanded from $8.5M to ~$19.5M. The company had transitioned from a strong regional player into a dominant national platform. It was then sold to a much larger private equity firm specializing in scaled industrial manufacturing assets.

Exit Multiple: 8.5× EBITDA

Creating a final enterprise value of approximately $165,750,000.

Because David retained ~30% ownership through his initial $12M rollover equity investment, his stake grew aggressively alongside the platform. Upon the final sale, his rollover equity alone was valued at ~$37,000,000.

Combined with the cash proceeds from the original transaction, David's total financial outcome approached ~$85M – $90M, cementing an extraordinary generational wealth creation event.

Institutional Lessons Learned

This transaction illustrates several principles central to capturing true institutional value.

1

Platform Investments Create Scale

Institutional investors seek companies capable of supporting acquisition strategies that expand revenue, capabilities, and market reach.

2

Multiple Arbitrage Creates Value

Bolt-on acquisitions purchased at lower multiples (e.g., 5.5×) significantly increase the overall value of a scaled platform business when it exits at a higher multiple (e.g., 8.5×).

3

Rollover Equity Aligns Incentives

By retaining ownership in the new capital structure, founders remain completely aligned with investors and participate immensely in the institutional value creation.

4

Institutionalization Increases Valuation

Professional management, scalable systems, and strategic clarity consistently transition founder-led businesses into highly sought-after, institutional-quality assets.

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