Extensive Investment Banking Transaction Experience
Our Work
Selected Transactions . . . A track record of results.
Case Study: Private Equity Firm Acquisition
Oilfield service equipment manufacturer
We act as a business development arm for many of our private equity firm clients. With a solid understanding of their investment criteria, we research, identify, and advise clients on strategic portfolio acquisitions. For example, we uncovered a Texas-based equipment manufacturer (“Targetco”) for one of the largest private equity firms in the world (“PE Firm”) that had expressed interest in the oilfield services industry. Targetco was owned by a 74 year-old owner with no succession plan in place. As part of our engagement, we:
- Performed a valuation of Targetco;
- Negotiated letter of intent on the PE Firm’s behalf with the Targetco’s owner that provided them with exclusivity;
- Collaborated with the PE Firm’s legal, accounting, and environmental advisers in conducting due diligence;
- Advised the PE Firm negotiating the final documentation necessary to close the transaction; and we
- Co-invested a portion of our fee with the PE Firm in the transaction.
The transaction was completed in seven months. In the following year, Targetco acquired its largest adjacent competitor, resulting in a multi-state, multi-plant entity which peaked at $250 million in revenues and $70 million in EBITDA. We:
- Served as financial advisor to the portfolio company on the business acquisition; and
- Rendered a fairness opinion to the minority shareholders on the acquisition of the competitor.
- Co-invested a portion of our fee with the PE Firm in the transaction.
Case Study: Corporate Realignment
Integrated marketing services provider
By putting clients first, TXCCA professionals become trusted advisors on multiple acquisitions for a single client. For example, we were engaged by a multi-billion dollar, world-class provider of integrated services for face-to-face marketing (“Corporation”) to advise it on the potential acquisition of a smaller company that was in a complimentary business line (“Compco”). We were engaged to:
- Prepare a preliminary valuation of Compco, which included projected results affected by various economic and business scenarios;
- Provide input to the letter of intent negotiated between the Corporation and Compco;
- Coordinate due diligence by the Corporation’s legal, accounting, and tax advisers;
- Offer guidance to senior management as they made presentations to the Corporation’s Board of Directors concerning the acquisition; and
- Work closely with the Corporation’s management and advisors in negotiating the documentation necessary to close the transaction.
The transaction was completed in a speedy four months. Post closing, we provided feedback on certain disputed transaction issues that were negotiated between the Corporation and Compco.
Since the initial transaction, the Corporation has engaged us as its financial advisor on other additional strategic acquisitions.
Case Study: Non-Core Business Divestiture
Process technology company
When a business or subsidiary is no longer considered to be part of a company’s core strategy, we will assist in completing that sale to another company. For example, a client in the building products industry (“Parent”) decided to sell its energy-related subsidiary (“Subsidiary”) to focus management’s time on, and invest additional capital in, its core building products business. The Parent engaged us to:
- Formulate a preliminary valuation of the Subsidiary;
- Draft, with Subsidiary management’s help, an offering memorandum describing the business and prospects of Subsidiary;
- Identify and contact worldwide potential buyers;
- Evaluate offers presented to the Parent by potential buyers;
- Select, with Parent’s input, potential buyers to be allowed to conduct in-depth due diligence;
- Work with Subsidiary management to make presentations to potential buyers; and
- Work closely with management of the Parent and its other advisors in selecting a final potential buyer and negotiating the closing documentation.
Case Study: Financing Growth
Materials handling manufacturer
At strategic points in the economic cycle it becomes advantageous to add debt, refinance it on more favorable terms and/or raise other capital to fund business expansion. For example, a manufacturer that designs and implements state-of the art material handling, packaging, and manufacturing automation (“Company”), engaged us to:
- Identify potential lenders and investors to fund senior and mezzanine debt to refinance a portion of the debt it incurred in an acquisition and for working capital purposes;
- Contact a short list of potential lenders;
- Handle the receipt of several preliminary term sheets;
- Recommend selection of the lender(s) with the most attractive term sheet(s);
- Manage the flow of information to the selected lender(s); and
- Assist Company management and its attorneys in negotiating the documentation necessary to close the transaction.
Shortly thereafter, we were engaged to help the Company raise additional capital to finance the working capital necessary to accomplish a spinoff of certain assets of the Company.