Case Study · Buy-Side
Electrical Contracting Acquisition: $6.6M Deal with Creative Equity Structure
A financial professional based in Texas sought an absentee-ownership opportunity where he could focus on operations and finances. LCG sourced a $2.4M EBITDA family-owned electrical contracting company in South Carolina, structured a creative CEO equity rollover to retain leadership continuity, and raised $1M in investor capital — allowing the buyer to close with no money out of pocket. The business is on pace for over $4M EBITDA in 2025 and projecting $8M+ by 2028.
The Challenge
Acquiring a Business from 1,000 Miles Away
The buyer came from the financial space and lived in Texas. He was searching for an opportunity where he could be an absentee owner, focusing on operations and finances rather than day-to-day management. The target was a family-owned electrical contracting business in South Carolina — the parents (owners) were retiring, but the current CEO (their son) was staying on. The business was producing $2.4M in EBITDA, but the buyer didn't have the funds needed to close, requiring $1M from the lending partner to get the deal done.
The Solution
CEO Rollover and Full Capital Raise
LCG structured a creative deal featuring a CEO rollover of 15% equity, with an incentive of another 7% in earned equity — reducing risk to the buyer by keeping proven leadership in place with skin in the game. LCG raised the full $1M on the client's behalf through its investor network. The investment structure allowed the buyer to close with no money out of pocket, a $200,000 annual salary, and investors owning 20% of the business. On a preferred return structure, 80% of all distributions went to paying back investors until they were made whole.
The Results
Explosive Growth Under New Ownership
The deal closed in approximately 4 months, from first engagement in July 2024 to closing in November 2024. The buyer cash-flowed over $350,000 in Year 1 and is on pace for over $500,000 in Year 2. The business is tracking to over $4M in EBITDA for 2025 and projecting over $8M in EBITDA by 2028 — which would value the business at approximately $45M. Investors received their full investment back in less than 1 year.
By the Numbers
Deal outcomes that speak for themselves.
From a stalled search to a closed deal and a growing business — in less time than most searchers spend reviewing CIMs.
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