Opportunities Submitted

Company NameFrog Creek Partners
Contact NameBrian Deurloo
Contact EmailEmail hidden; Javascript is required.
Contact Phone(307) 439-9570
Opportunity NameEnvironmental Technology Manufacturer Sale or License
Location of BusinessCasper WY
When was the business started?2016
What is the business most known for?Invention & Commercialization of the patented Gutter Bin stormwater filtration system
Who is/are owner/owners?Brian Deurloo (major), plus several angel investors
Why sell the business?

1. We need to clean up the rivers and oceans on a massive scale ASAP. Most are polluted from stormwater. The Gutter Bin idea is proven to work and needs the backing and drive from a firm with the right resources and network. The idea needs to grow faster than it currently is.
2. This business model might benefit from a different driver/leader other than the inventor, Brian Deurloo.The business and product are proven and ready for next level scaling.
3. I desire to spend more time refining the Gutter Bin design so that it is easier to manufacture, install, and clean. An exit will allow me to spend more time on the things I love about this business during the earn our and perhaps beyond.
4. I have many other invention ideas that I want to prototype and commercialize. In order to do this, I must first monetize the Gutter Bin.
5. The market is so huge, the product is just right, and the timing is excellent for a sale of the Gutter Bin product. Now is the perfect time to sell the Gutter Bin asset.

Are you looking to recapitalize the business by selling a majority stake to aggressively take the business to next level?All options are on the table. Recapitalization is one avenue I am open to.
Who will remain on the ownership level?Only Brian Deurloo from the current cap table, maybe a few more depending upon the deal.
Is the owner(s) planning to stay around? If so, what is their thinking?

Absolutely, I am fully committed to staying on board and actively supporting the acquirer in propelling our company, particularly the Gutter Bin ideal, to greater heights. From the outset, my vision has been to see a Gutter Bin on every corner in North America and Europe, driven by a passion to safeguard our rivers and oceans. I am deeply invested in the success of this endeavor and have numerous ideas to enhance the product's simplicity, affordability, and ease of installation and maintenance. With the transition of ownership, I will have more bandwidth to dedicate to these efforts, ensuring a seamless transition and fostering the continued growth and success of the Gutter Bin. I am eager and willing to collaborate with the acquiring party to make the Gutter Bin as smooth and successful as possible.

What is the maturity level of the business?Post Revenue and Profitable
EBITDA or Profit for same periodWe operated at a loss due to earlier fundraising - margins remain above 60%
Trailing 12 Month Revenue$566,387 (2/23-2-24)
Trailing 12 Month EBITA$379,896 (2/23-2/24)
Any significant debt on the business?$72,515 (EIDL, Auto and Other loan)
Why did the business start?

I started Frog Creek Partners because I have a huge pet peeve about cigarette butt litter. It's appalling to see approximately 4.3 trillion cigarette butts littered worldwide each year, causing immense harm to our environment. Scientific evidence shows that just one smoked cigarette butt in a liter of water can kill half of the fish in it…and nicotine is one of the strongest insecticides know to mankind. We are literally killing trillions of organisms per year with our pollution. This pollution, alongside other forms like tire treads, heavy metals, oil, and plastic, deeply concerns me. I wanted to take action to combat this issue, so I established Frog Creek Partners to support environmental technology innovation. My goal is to commercialize solutions like catch basin filter inserts, which I believe are an effective way to address environmental pollution and make a positive impact in the world.

Why did the business start?

I started Frog Creek Partners because I have a huge pet peeve about cigarette butt litter. It's appalling to see approximately 4.3 trillion cigarette butts littered worldwide each year, causing immense harm to our environment. Scientific evidence shows that just one smoked cigarette butt in a liter of water can kill half of the fish in it…and nicotine is one of the strongest insecticides know to mankind. We are literally killing trillions of organisms per year with our pollution. This pollution, alongside other forms like tire treads, heavy metals, oil, and plastic, deeply concerns me. I wanted to take action to combat this issue, so I established Frog Creek Partners to support environmental technology innovation. My goal is to commercialize solutions like catch basin filter inserts, which I believe are an effective way to address environmental pollution and make a positive impact in the world.

How did business get to where it is at?

The journey of our business to its current position is a testament to vision, persistence, teamwork, exceptional customer service, and a sprinkle of luck. Along the way, we've had some pivotal moments, including well-timed large sales with major players like Microsoft, the town of Vail Colorado, and Meijer Superstores in the Great Lakes region, etc. Additionally, we've undertaken numerous smaller projects across Colorado, California, Wyoming, Arkansas, Virginia, and Canada, contributing to our growth and presence in the market. Support from my family, friends, and investors has been instrumental in propelling us forward. With $2.2 million raised and 33% of the company sold, their belief in our vision has been invaluable. One crucial factor in our success is the quality of our product. It not only works exceptionally well but also boasts an attractive design and ease of service. With the largest overflow on the market and our proprietary custom storm drain covers, our product stands out among competitors. The confidence people have in our product has led to repeat sales, and our blade and razor model ensures ongoing business. In essence, our journey to where we are today has been fueled by a clear vision, unwavering perseverance, and a product that resonates with our customers.

Aggregations or Organic growth?

Organic growth has been the cornerstone of our company's expansion. We've experienced significant increases in sales by tapping into various markets, ranging from military and municipalities to federal government agencies, data centers, superstores, dentists, and even community-minded individuals. Additionally, we've continuously developed new products tailored to the diverse types of storm drains in the market. Our adjustable frame, which offers unparalleled versatility, has set us apart as an industry leader. Furthermore, our commitment to ongoing product improvement ensures that we stay ahead of the curve, meeting the evolving needs of our customers. This organic growth has not only strengthened our customer relationships but also fostered brand loyalty, as it reflects our dedication to delivering innovative solutions driven by our own efforts and ingenuity.

Any tailwinds or headwinds facing business/sector?

Tailwinds: At no other time in human history has there been such a profound understanding of our impact on the environment and the planet as a whole. This heightened awareness has catalyzed a massive movement in environmental, social, and governance (ESG) initiatives, as well as extended producer responsibility (EPR) laws. Governments and corporations are increasingly compelled to take action to protect the environment, with new laws being passed annually to safeguard water quality and quantity and limit pollution. These tailwinds create a conducive environment for businesses like ours that offer solutions to environmental challenges. There are also states like California and others who pass laws that require municipalities to be 100% trash capture by the year 2024. California has started many environmental initiatives adopted by other states like Clean Air Act, renewable energy mandates, Cap & Trade, single use plastic bans, etc. Other states are also aggressively pursuing clean water initiatives like Maryland, Oregon, Washington, Minnesota, and New York.

Headwinds: Despite the momentum behind environmental protection efforts, one of the main headwinds facing our business sector is the lazy acceptance of the status quo. Many individuals and organizations may choose to do nothing, opting for inertia because it's easier than dedicating resources to protecting their communities and the future of the planet. Overcoming this inertia and inspiring action will require ongoing education, advocacy, and innovative solutions to address environmental challenges effectively.

Sector insights from owner and what the opportunity going forward with new owner might look like?

As the founder, I believe there are significant sector insights that can guide the future direction of our company, particularly with a new owner at the helm. Firstly, it's crucial to identify the ideal customer for our refined company. Historically, we've been fortunate in securing sales opportunistically and strategically, but there's immense untapped potential waiting for a firm that truly understands the value proposition of the Gutter Bin system. This entails not only recognizing the product's potential but also committing to assembling a strong management team, allocating sufficient resources, and investing the necessary time to drive its success. Looking ahead, the stormwater filtration sector presents a promising opportunity for growth. The industry is expanding rapidly, driven by factors such as increasing environmental regulations, the implementation of "rain taxes" to fund stormwater infrastructure, and substantial government spending on water infrastructure projects. Additionally, the stormwater filtration industry remains highly fragmented, indicating ample room for innovation and consolidation. With the right strategic vision and execution, I firmly believe that our company could achieve significant growth, potentially reaching a valuation of $100 million or perhaps surpassing the billion-dollar mark within the next few years. The combination of a compelling product offering, a growing market, and a commitment to innovation positions us well for success in the stormwater industry's evolving landscape.

What is the unique story of business -- how is it different then their competition –what makes them better/worse?

The unique story of our business revolves around the Gutter Bin, a revolutionary concept designed to revolutionize stormwater management. From its inception, our vision has been to integrate the Gutter Bin seamlessly into existing waste collection systems, much like traditional trash and recycling bins. Our goal is for Gutter Bins to become a ubiquitous sight on street corners across not just America, but also in regions around the world including Europe and Asia. What sets us apart is the simplicity and efficiency of our product. It's easy to manufacture, install, and maintain, making widespread adoption feasible within the next decade. But what truly distinguishes us from the competition is our forward-thinking approach. We've engineered the most adjustable, scalable, and modular catch basin filter insert globally. While others in the industry have settled for incremental improvements, we've dared to dream big and design for scalability from the outset. Our competitors' shortcomings are evident in their designs, lacking the foresight and innovation that drives our product forward. Our unique combination of vision, innovation, and practicality positions us to not only outperform the competition but also to make a significant impact on both the environment and our bottom line. We're not just in the business of making money; we're in the business of transforming stormwater management and leaving a cleaner, healthier planet for future generations.

Provide any additional notes, information or data that supports this opportunity

In closing, the value proposition of the Gutter Bin business extends beyond conventional metrics like revenue and profit margins. While we've demonstrated profitability, the true value lies in its disruptive potential within the waste management and stormwater management sectors. With a product that stands as the market leader and operates within an industry set for substantial growth, the Gutter Bin represents a pivotal innovation poised to reshape the landscape of stormwater management. Overnight, a national waste management company can expand its total addressable market by approximately 20% by incorporating our solution. Our product holds the key to unlocking a billion-dollar growing market, and we're uniquely positioned to capitalize on it at a scale that no one else can match.

The versatility of the Gutter Bin model opens up numerous revenue streams, offering various ways to monetize our innovative solution. From capturing pollution and earning fees based on the pounds collected, to generating revenue through service and installation fees, there's a multitude of avenues to profitability. Additionally, opportunities abound in data management, filter bag replacements, stormwater credits, EPR credits, ESG credits, LID credits, Gutter Bin sales, financing options, and more.

Over the past eight years, we've successfully served a diverse range of customers, including cities, corporations, waste management companies, military installations, chain stores, industrial sites, zoos, theme parks, dentists, billionaires, and even individual homeowners. This breadth of experience underscores the widespread applicability and market demand for our product.

I'm confident that our innovative approach, coupled with our proven track record and diverse revenue streams, will continue to drive success and growth in this dynamic industry. With the Gutter Bin leading the way, we're poised to make a lasting impact on the environment while delivering value to our customers and stakeholders.

The business model of Frog Creek Partners boasts numerous strong synergies across various sectors, including waste management, regulatory compliance, environmental conservation, water infrastructure, public-private partnerships, and goodwill. Our model aligns seamlessly with ESG and EPR initiatives as well as Corporate Social Responsibility (CSR) initiatives, thereby positioning us as a key player in the sustainability landscape.

With its resilience akin to a trash collection model, our business is nearly recession-proof, offering stability and growth potential even in challenging economic times. Frog Creek Partners holds five patents and several trademarks on the Gutter Bin system and the Mundus Bag water filter, with the potential for numerous additional patents for downstream service products. Anyone who adopts the Gutter Bin stormwater filtration system will have the opportunity to work with me to patent various devices associated with Bin cleaning and servicing, further enhancing the value of our offering.

This represents a rare and unparalleled opportunity to participate in a highly lucrative and dynamic environmental innovation venture. I want to express my gratitude for your time and attention in learning about our mission. Together, we can make a meaningful difference in protecting our planet for future generations...and make a pile of money. Call me.

Thank you,
Brian Deurloo
President & Founder
307-439-9570
brian@frogcreek.partners
https://frogcreek.partners/
LinkedIn: https://www.linkedin.com/in/brian-deurloo-008a2414/

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Date CreatedMarch 1, 2024
Date UpdatedMarch 1, 2024