# Leslie Tam / UrbanMop — Strategic Context
Source: Discord #research conversation, March 20 2026

## Who is Leslie Tam?
- CEO of UrbanMop (Ottawa-based cleaning company)
- Executing a roll-up play: acquire/partner with 10 cleaning companies doing ~$300K, grow each to ~$1M
- Has Simon (ex-Scrubby #1 sales guy) and VP of Marketing who rode Scrubby from $3M to $12M
- ~7 years in business, projecting $3M for 2026
- Tried Toronto market and pulled back — couldn't crack it
- Now approaching NMC as acquisition target

## The Offer (Path A - Cash Exit)
- $210K at signing
- $52.5K over 24 months
- ~$262K at Year 2
- Total: ~$524K
- 70% of NMC at signing (valued at $375K = 3.0x EBITDA)
- Mike keeps 30%, bought out at Year 2

## Harvey's Analysis
- Leslie used 3.0x EBITDA. NMC profile (83% recurring, 10yr brand, Toronto) is worth 4x-5x
- At fair multiples: $500K-$625K vs Leslie's $375K implied
- Leslie wants Toronto — that's NMC's leverage. He failed there organically.
- NMC is a cornerstone asset, not just another acquisition

## 4 Paths Discussed

### Path 1: Independent Growth + Sell Later
- Borrow $150K, fund $6K/mo marketing, grow to $1.5M revenue
- Sell at 4.5x = $900K. Net after debt: ~$735K in 2-3 years. Keep 100%.

### Path 2: Leslie's Deal (reject or renegotiate)
- Underpaying by $125K-$250K. Lose control immediately.
- Only makes sense if you can't grow independently.

### Path 3: Capital Partner (minority stake)
- Partner puts $150K for 15% equity + brings marketing execution
- Grow to $1.5M, sell at 4.5x = $900K. Mike's 85% = $765K
- WINNER if partner brings more than just money (marketing machine)

### Path 4: Franchising
- 12-18 months to systemize + $40-60K legal costs
- First royalty checks year 2-3, significant passive income year 4-5
- Wrong answer if Mike wants fast returns. Right answer long-term.

## Mike's Key Insight
- "$5-10M is life-changing money. $900K is not."
- This reframes everything toward bigger plays (franchise, platform, roll-up)

## Creative Options with Leslie (without selling)
1. Marketing services / rev-share agreement — access his team without giving equity
2. Strategic partnership — Leslie handles Ottawa/smaller markets, NMC keeps Toronto
3. Use Leslie's interest as market validation for raising capital independently

## Decision Status
- Mike is NOT selling to Leslie at current terms
- Exploring franchise vs. independent growth vs. capital partner
- Leslie conversation parked but relationship maintained