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AcquiScope · Investment report · Northgate Facilities Services Ltd · Confidential
Investment report
Northgate Facilities Services Ltd, company number 09912345. Facilities management, Watford. Prepared 23 August 2026 for the mandate holder.
Analysis and modelling, not regulated investment advice. Not an audit, a legal opinion or a survey.
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AcquiScope · Investment report · Northgate Facilities Services Ltd · Confidential
1. Recommendation
Attractive only below £1,740,000. The business is sound and the price is not. Three filed years show revenue growing at 9.92% a year and reported EBITDA at 15.28%, with margin widening in each year. After testing the seller's adjustments and deducting the cost of replacing the owner's operational role, platform normalised EBITDA is £585,200 on revenue of £4,120,000, a margin of 14.20%.
At the selected multiple of 3.4× the enterprise value is £1,989,680 and the equity value after the bridge is £1,597,680. The maximum the platform supports is £1,740,000, set by the 1.5× debt service cover floor rather than by the 25% return hurdle. At the asking price of £1,850,000 year-one cover is 1.37× and the structure does not fund.
Next best action
- Obtain the contract expiry ladder and a written statement of the owner's duties. Both are free to request and both change the analysis.
- Open at £1,380,000 with the two challenged add-backs itemised in writing.
- Hold £1,740,000 as the ceiling.
- Test whether the seller will take £500,000 as a vendor note rather than £260,000. If so the maximum rises to £1,917,000 and the asking price becomes fundable.
Page 2 of 6
AcquiScope · Investment report · Northgate Facilities Services Ltd · Confidential
2. Trading and quality of earnings
| £000 | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 3,410 | 3,780 | 4,120 |
| Reported EBITDA | 392 | 455 | 521 |
| Margin | 11.5% | 12.0% | 12.6% |
The seller presents adjusted EBITDA of £673,700 from six adjustments. Four are accepted in full. The family salary add-back is reduced from £28,000 to £22,500 and the exceptional legal cost from £22,000 to £11,000, together £16,500. A further £72,000 is deducted for the cost of replacing the owner's operational role, which the seller does not deduct. Platform normalised EBITDA is £585,200.
| Bridge | £ |
|---|---|
| Reported EBITDA | 521,000 |
| Seller adjustments, net | 152,700 |
| Seller adjusted | 673,700 |
| Adjustments challenged | −16,500 |
| Owner replacement cost | −72,000 |
| Platform normalised | 585,200 |
Footnotes. Filed accounts to 31 March 2025, Companies House, retrieved 22 August 2026 V. Seller adjustments from the management pack supplied 18 August 2026 S. Owner replacement cost is a platform assessment C.
Page 3 of 6
AcquiScope · Investment report · Northgate Facilities Services Ltd · Confidential
3. Revenue quality, score and screening
| Measure | Value | Assessment |
|---|---|---|
| Contracted and repeat revenue | 68% | Above the 60% preference M |
| Cash conversion | 63.2% | FCF £369,910 over normalised EBITDA C |
| Largest customer | 18.4% | Warning band, below the 25% refusal M |
| Top five customers | 46.1% | Top ten 61.7% M |
| Debtor days | 55.6 | Creditor days 44.2 C |
| Maintenance capex | £62,520 | 10.7% of normalised EBITDA C |
| Owner dependency | Moderate | Priced at £72,000 rather than ignored C |
The acquisition quality score is 72 of 100, in the good band, across eleven weighted components. Twelve of fourteen mandate tests pass. One fails, the asking price against the platform maximum. One is overridden with a recorded reason, owner independence, which is a preference rather than a requirement. Distressed detection found no signal across the eight implemented checks, and three further checks are not implemented.
Page 4 of 6
AcquiScope · Investment report · Northgate Facilities Services Ltd · Confidential
4. Valuation, funding and downside
| Item | £ |
|---|---|
| Enterprise value at 3.4× | 1,989,680 |
| Net equity bridge | −392,000 |
| Equity value | 1,597,680 |
| Opening offer | 1,380,000 |
| Target price | 1,560,000 |
| Maximum price | 1,740,000 |
| Asking price | 1,850,000 |
At the target price the structure is equity £420,000, senior debt £780,000 over six years at 9.5% amortising, a vendor note of £260,000 at 6% interest only with principal on exit, and deferred consideration of £100,000 at month 24. Year-one debt service is £219,700 against cash available of £390,825, a cover of 1.78× C. Base case equity IRR 65.3%, money multiple 7.4×, payback 2.6 years F. Downside IRR 51.2% F. The return figures depend on the platform forecast and on an assumed year-five exit at the entry multiple. They frame the exit and test debt capacity. They are not a prediction and they do not pass or fail any screening test.
Seven stress scenarios were run. Three breach the cover floor: EBITDA down 20% at 1.44×, loss of the largest customer at 1.40×, and a working capital shock moving debtor days from 55.6 to 70.6 at 1.01×. None breaches the return hurdle, because the return is set by the entry multiple and no operating shock changes it. Reverse stress puts the 1.5× floor at EBITDA of £490,200, a fall of 16.2%.
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AcquiScope · Investment report · Northgate Facilities Services Ltd · Confidential
5. What we do not know
| Gap | Requested | Effect if supplied |
|---|---|---|
| Contract expiry ladder | 18 Aug 2026 | Dates the 68% recurring share and the concentration risk |
| Owner's operational duties, written | 18 Aug 2026 | Confirms or moves the £72,000 replacement cost, worth £245,000 of enterprise value at 3.4× |
| Current-year management accounts | 19 Aug 2026 | Filed data ends 31 March 2025, roughly seventeen months old |
| Dilapidations position, leased depot | 19 Aug 2026 | Replaces a £35,000 platform estimate with a surveyed figure |
Basis of preparation
Provenance keys: V verified from filed or registered data, S seller supplied and untested, B broker supplied and untested, M management information and untested, C calculated by the platform, A operator assumption, F forecast.
No comparable transaction data has been ingested and none is asserted. No public_web source contributed to this report. Forecasts are used only to test debt capacity and to frame the exit. They do not pass or fail any screening test and do not contribute to the quality score.
AcquiScope produces analysis and modelling, not regulated investment advice. This report describes an invented business and is shown to demonstrate the generated output format.
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