BlackRain · Internal
Pre-Meeting Credit & Value Memorandum · Internal

Creative Exteriors, LLC

Prepared by BlackRain Automations · 2026-08-03 · Facts = SBA/registry/public web · Estimates labeled

1 · Snapshot

BusinessLandscape design-build + maintenance/lawn care — Vernon, CT
Headcount45 (SBA loan record — fact)
OwnershipChanged Aug 11, 2025 — SBA 7(a) $2,574,000, First Internet Bank (fact)
Est. revenue~$5.0M (45 × $110–140k/head, trade norm)
Est. EBITDA~$750k at 15% · SDE ~$850–900k (est.)

2 · Capital structure & credit today

$2.57M SBA at ~10.5% variable, 10-year amortization → ~$414k/yr of service (~$34.5k/mo). Implied purchase ~$2.8–3.0M (~3.3x SDE, Main Street norm).

1.8x
DSCR today
~$300k
Owner equity today

Read: healthy coverage, but half the cash flow works for the bank. Today he owns a job with upside; the bank owns the company.

3 · Pro forma at 2x — $10.0M

Today (est.)At $10M
Revenue$5.0M$10.0M
EBITDA15% · $750k18–20% · $1.8–2.0M
Debt service$414k$414k — the note doesn't grow
DSCR1.8x~4.5x
Free cash after bank~$340k~$1.5M/yr

4 · The bridge — where +$5M comes from

LeverΔ Revenue (est.)Mechanism
Leak capture+$0.4–0.6MUnanswered calls/leads captured by machines
Quote velocity+$1.0–1.3MSame-hour estimates → +10–15 pts win rate
Maintenance-base mining+$0.7–0.9MExisting clients → projects, systematically
Radius & reputation+$0.9–1.2MReview velocity + local search, +1 town all directions
Price / mix+$0.6–0.9MBigger hardscape tickets, design-fee discipline
Referral engine+$0.5–0.8MWeekly client photo updates → systematized word of mouth

Timeline honesty: 3-year double = 26% CAGR vs industry ~5%. Aggressive but attainable for the systematized local leader; 4 years is comfortable.

5 · Valuation & equity build — the slide that matters

TodayAt $10M
EBITDA$750k$1.8–2.0M
Multiple~3.3x SDE4.5–5.5x EBITDA (size + documented systems)
Enterprise value~$2.8M$8–11M
Net debt~$2.5M~$2.0M
Owner equity~$0.3M$6–9M
~20–30x
His cash-on-cash if he put ~$290k down
"Doubling revenue isn't 2x the company — it's ~20x your equity, because the multiple expands and the note stands still."

6 · Credit view

At 4.5x coverage he can refinance, extend, or borrow for acquisition #2 — the playbook repeats. Doubling once makes him a platform, not a landscaper. The SOPs and the Monday Brief inside the Works are precisely what lenders and future buyers underwrite.

7 · Risks — name them first

Labor — the binding constraint. Mitigant: revenue-per-crew-hour mix + SOP onboarding.
Season concentration — the maintenance base is the smoother.
Key-man (him) — systems cut it, and cutting it raises the exit multiple.
Rate risk on the variable note — growth is the hedge, not austerity.

8 · Three lines for the room

"You're at about 1.8 times coverage — comfortable, but half your cash flow works for the bank. Double the top line and it's 4.5 — the bank starts working for you."
"The note doesn't grow with the revenue. The value does."
"Everything on that bridge is a system, not a hire. That's what the hundred days installs."

9 · The 10x view — $50M, and who's already done it

Reality check: $50M residential design-build = national-champion scale. When PE bought Mariani (Dec 2020) at ~$60M, that was the LARGEST residential design-build firm in America. The $100M+ names (BrightView $2.7B, TruGreen $1.7B) are commercial maintenance — a different business. Nobody grows premium residential to $50M in one town. The road is the roll-up — and Mariani proved it: 26 acquisitions in 5 years, 4,750 employees, 13 states, a $740M credit facility raised to buy firms exactly like this one.

PhaseYearsRevenueThe move
1 · The Fortress1–3$5M → $12MOrganic, via the machines. Undisputed premium firm of Hartford/Tolland at 18–20% EBITDA (~$2.2M). Mandatory: no roll-up on a broken chassis.
2 · First deals3–5$12M → $25MBuy 2–3 neighboring $3–6M firms (aging owners, no succession, ~3–3.5x earnings) via SBA/seller notes/cash flow. Integration = the software. Every acquired firm plugs into the Brain/SOPs/Monday Brief in 90 days — most roll-ups die on integration; his is a machine.
3 · The Platform5–8$25M → $50MPE partner or credit facility; branch New England (CT/MA/RI = hundreds of $2–8M targets). He becomes what CI Capital shopped for.

Endgame: $50M at 12–15% EBITDA = $6–7.5M, platform multiples 7–9x+ → EV $45–65M. Even at 50% ownership post-dilution: $20–30M to the man who put ~$290k down in Vernon.

"There's a PE firm in Chicago with $740 million raised to buy companies exactly like yours. You can meet them as one of the 26 they swallow — or as the platform they pay platform price for. The hundred days is how you become the second one."

10 · The acquisition playbook — what to buy, where, in what order

The mechanic: multiple arbitrage. A $2M firm sells at ~3x its earnings (small, owner-tied). Inside a $12M systematized platform, the same earnings are worth 5–7x. Buy at 3, instantly worth 5+. That's the whole religion.

OrderTarget typeWhy
1Maintenance / lawn-care books (400–2,000 accounts, owner 55–65, no succession)Recurring cash services debt through winter; every account = a future patio lead for the goldmine machine
2Tree serviceHigh tickets, storm demand, insurance scales better inside a platform; cross-sells both ways
3Irrigation + lighting tuck-ins ($500k–1.5M)Cheap; converts every design-build job into a bigger in-house ticket
4Wealth-corridor design-build peerThe Phase-2 capstone — CE one county over, owner aging out

The town map, in order: 1) Glastonbury / South Windsor / Manchester (adjacent) · 2) Farmington Valley — Avon, Simsbury, West Hartford, Farmington (the crown-jewel second territory) · 3) the shoreline — Guilford, Madison, Old Saybrook · 4) Longmeadow/Wilbraham MA · Fairfield County = Phase 3, not yet.

Financing, with the hard constraint: SBA 7(a) caps at ~$5M per borrower incl. affiliates — he's used $2.57M → ~$2.4M headroom = one or two deals, not a campaign. Deal #1: remaining SBA + 20–30% seller note. Deals #2–3: conventional debt on proven platform cash flow. Phase 3: credit facility or PE. Seller notes are the weapon — retiring owners here care about legacy and crews almost as much as price.

Worked example (deal #1): $2.5M maintenance-heavy target, SDE $450k, price 2.8x = $1.26M ($800k bank + $300k seller note + $160k cash). Synergies +$150k, cross-sell +10% → ~$600k EBITDA added, worth ~$3M at platform 5x. ~$1.7M of equity manufactured in one deal. Three of these = Phase 2 complete.

90-day integration (why this roll-up won't die like most): wk 1 — phones into the machine, book into the Client Brain · mo 1 — same-hour quoting, SOPs, one Monday Brief for both companies · mo 2–3 — cross-sell the acquired base, brand keep-then-fold, seller stays consulting (his note depends on it). Integration isn't a war room — it's plugging into machines that already run.

Every deal needs someone to find the targets, write this memo about them, structure the notes, and integrate the systems. That's BlackRain — origination at close, integration retainers after. The Works is the audition.