How was the acquisition of Wallaby Windows and Koala Insulation by the company that owns Bumble Roofing funded?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE 7 – BUSINESS ACQUISITIONS (Continued)
Wallaby Windows and Koala Insulation
On April 13, 2023, the Company acquired the assets of Wallaby, Wallaby-Melbourne, and Koala (collectively referred to as "Wallaby and Koala") for the purpose of adding window, door, and insulation brands to the existing portfolio.
After net working capital adjustments, the purchase price of Wallaby and Koala was approximately $93,203,000 which includes a $233,000 earnout provision subject to Wallaby and Koala maintaining certain system wide revenue thresholds and other metrics. The acquisition was funded by capital contributions from Empower consisting of units of ownership interest in BCAT valued at approximately
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 FDD, the acquisition of Wallaby Windows and Koala Insulation, brands related to window, door, and insulation services, was completed on April 13, 2023, by the company that owns Bumble Roofing. The total purchase price for these assets, after net working capital adjustments, amounted to approximately $93,203,000. This figure includes a $233,000 earnout provision.
The acquisition was financed through a combination of methods. Empower, contributed capital in the form of ownership units in BCAT, valued at approximately $55,000,000. Additionally, Empower secured debt financing of approximately $24,500,000. The remaining portion of the acquisition cost was covered by cash.
For a prospective Bumble Roofing franchisee, this information provides insight into the financial strategies and resources of the parent company, OLB Holdco, and its equity partner Empower. Understanding how acquisitions are funded can give franchisees confidence in the financial stability and growth strategy of the overall organization. The use of a combination of equity, debt, and cash indicates a diversified approach to financing, which may reduce risk. The earnout provision also suggests that the acquired companies have performance-based incentives to maintain revenue thresholds, potentially benefiting the entire franchise system.