Entry Plan
Two Staged Platform Closings
Q4 2026Platform 1 Targeted Close
Q1 2027Platform 2 Targeted Close
~$585MCombined EV at IOI Terms
~8.7xBlended Entry Multiple
Platform 1 · Close Q4 2026
Century-Old Creditors-Rights Firm
- ~$105M revenue · ~$27M adj. EBITDA (~22% PF margin)
- IOI: $245M EV at ~9.0x adj. EBITDA
- Blue-chip financial-institution clients, ~25-year avg. tenure
- 6-target add-on pipeline identified
Platform 2 · Close Q1 2027
National Mortgage-Default & Recovery Platform
- ~$250M revenue · ~$40M EBITDA (~16% margin, 2026E organic)
- IOI: $320–360M EV at 8.0–9.0x (model uses $340M midpoint)
- Mortgage servicers, GSEs, banks & credit unions; diversified client base
- Contributes nine months of FY2027 (end of Q1 close)
Platform Financials
High-Level P&L
Platform 1 · Century-Old Creditors-Rights Firm
Reported P&L — FY2023 through TTM April 2026 ($M)
| USD $M | FY23 | FY24 | FY25 | TTM Apr-26 |
|---|---|---|---|---|
| Revenue (net) | 64.6 | 77.1 | 99.2 | 105.2 |
| Operating expenses | (64.6) | (78.6) | (99.0) | (102.7) |
| Net income | (0.0) | (1.5) | 0.2 | 2.5 |
| + D&A, interest, taxes | 0.9 | 1.0 | 1.4 | 1.4 |
| + Shareholder distributions | 3.3 | 7.7 | 14.2 | 14.2 |
| Reported EBITDA | 4.1 | 7.2 | 15.8 | 18.1 |
| margin % | 6.4% | 9.4% | 15.9% | 17.2% |
| + Mgmt / diligence / pro forma adj. | 7.4 | 7.5 | 9.0 | 9.0 |
| PF Adjusted EBITDA | 11.5 | 14.7 | 24.8 | 27.1 |
| PF margin % (on adj. revenue) | 14.4% | 15.9% | 21.4% | 22.1% |
Per company management presentation and third-party quality-of-earnings analysis (reviewed financial statements; adjustments comprise management, due-diligence, and pro forma items incl. pre-acquisition EBITDA of pipeline add-ons). PF margin computed on pro forma adjusted revenue of $122.5M TTM.
Platform 2 · National Mortgage-Default & Recovery Platform
Reported P&L — FY2023 through April 2026 Interim ($M)
| USD $M | FY23 (aud.) | FY24 (aud.) | FY25 (unaud.) | 4M Jan–Apr '26 | 2026 Run-Rate³ |
|---|---|---|---|---|---|
| Revenue (as reported)¹ | 100.0 | 101.6 | 179.2 | 75.9 | ~228 |
| of which fee revenue | 100.0 | 101.6 | 142.5 | 59.3 | ~178 |
| Personnel (salaries & benefits) | (56.3) | (62.0) | (81.4) | (32.8) | (~98) |
| Other direct & operating expenses | (27.4) | (27.6) | (76.7) | (33.1) | (~99) |
| Net income | 15.0 | 10.7 | 19.3 | 9.6 | ~29 |
| EBITDA² | 18.8 | 13.7 | 24.4 | 12.6 | ~38 |
| margin % | 18.8% | 13.5% | 13.6% | 16.6% | 16.6% |
¹ FY25 and interim statements gross up reimbursable cost revenue into the top line; audited FY23–24 report fee income only — top lines are not directly comparable. ² FY23–24 calculated (operating income + D&A); FY25 and interim as reported by the company. ³ Four-month interim annualized; consistent with management's indicated 2026 run-rate of ~$40M EBITDA. Full 2026 financials pending; QofE in process.
Deal identities blinded pending definitive agreements. Platform figures per data-room financial statements; subject to due diligence and definitive documentation.
Assumptions
Key Model Drivers
7%
+5.0 pts
3.5x
8.73x
10x
Add-On Schedule
Build your own add-on plan — any number of acquisitions, in any year, at any size and multiple. Each closes July 1 of its year at a ~20% EBITDA margin, then ramps to its platform’s margin over 12 months; practice type sets the margin path and receivables profile. Funding (net of the 30% seller rollover): re-lever to the leverage cap on pro forma EBITDA, then balance-sheet cash above 3 months of operating expenses, then sponsor equity.
Fixed Assumptions
- Platform closes: Q4 2026 and Q1 2027 (second platform contributes nine months of FY27); exit December 31, 2031
- Sellers roll 30% of equity consideration (non-cash): platforms at post-transaction equity value, add-ons at a 10x pre-money mark on trailing 3-month run-rate EBITDA
- Debt: 10% rate, 5%/yr amortization paid quarterly, year-end excess-cash sweep above a 3-month-opex minimum
- Working capital: 365-day consumer / 90-day mortgage receivables (delivered at close inside the purchase price); 30-day payables; capex 1% of revenue
- Taxes 26% (C-corp, monthly); transaction costs 3% of EV; $5M operating cash funded at each platform close
- MOIC/IRR are gross, on total invested equity (sponsor cash + rollover) — same engine as the downloadable Excel model
Platform Build
Revenue & EBITDA Build
—FY31 Revenue
—FY31 EBITDA
—FY31 Margin
—EBITDA CAGR (FY27–31)
Combined Platform · FY2027–FY2031
Revenue & EBITDA ($M)
Deleveraging
Net Debt ($M)
Returns
Exit December 2031
—
Gross MOIC · FY31 Exit
—Gross IRR
—Equity at Exit
Entry EV (combined + fees)—
Total Equity Invested—
Exit EBITDA (FY31)—
Exit EV—
Less: Net Debt at Exit—
Equity Value at Exit—
Sponsor Cash (PS + Nexus) MOIC / IRR—
Illustrative gross returns before fund-level fees, carry, and expenses. Anchored to submitted IOI terms on the two creditors-rights platforms; both remain subject to due diligence and definitive documentation.