The shareholders of Air-Cooled Exchangers selected Acquisition Advisors to represent them in recapitalization of their rapidly growing manufacturing business. Recapitalization is a restructuring of the right side of the balance sheet. New debt and equity capital are brought in, allowing shareholders to harvest cash while retaining a meaningful equity interest and continuing to manage the business.
After clearly establishing and ranking the client’s goals and objectives, Acquisition Advisors developed and executed a quiet, confidential and effective strategy that resulted in a transaction that met all of the client’s goals and objectives.
By way of history, Tom Self, a successful independent representative for Air-Cooled Exchangers (ACE), purchased the company in the fall of 2001. As the industry rebounded, various business improvement initiatives of his took hold and ACE grew rapidly. In 2006, Self shared with David L. Perkins, Jr. his desire to “take some chips off the table” and also retain ownership and operating control.
Acquisition Advisors quietly introduced the opportunity to select private-equity groups. Twenty-four offers were secured. Five firms were granted conference calls with Self, and four of them visited company headquarters. Buyer candidates were ranked according to their price, terms and financial stability. A deal was eventually closed with the lead buyer candidate, Clearview Capital. Terms well exceeded original targets and all of the seller’s original objectives were met.
No Deal Is Easy. Skill and Experience Are Needed.
ACE is an exceptional company and Tom Self is an exceptional manufacturing executive. He is also exceptionally busy, and deals require a lot of the owner’s time and energy. But Acquisition Advisors has the skill and know-how to minimize time drain. In this case, we minimized time demands on the client by screening candidates and restricting conference calls to just one per candidate (for a total of five) and site visits to one per candidate (for a total of four). Finally, by adhering to the plan and resisting the temptation to get heavily involved, Self served himself and his fellow shareholders well. The result was a maximized deal price, and the business did not suffer from any distractions.
Understand the AA process. Adhere to it. Let it work.
Acquisition Advisors works a process designed to maximize value derived by Acquisition Advisors’ clients. It works when clients adhere to it. It takes discipline. Most clients can and do. Some cannot and do not. Don’t let that be you. If you don’t buy into the Acquisition Advisors model, don’t hire us.
Self understood the AA process and adhered to it. The result was pure beauty. The business continued to perform exceptionally well, and strong operational performance through closing goes a long way toward thwarting any attempt the buyer may make to tweak the terms in its favor right before closing.
Acquisition Advisors did a tremendous job for us. We’re very excited about the deal and our new partnership with Clearview.
We worked with David in the acquisition of Air Cooled Exchangers (ACE), and were impressed with his work and insight. We hope to be able to look at more transactions together over the coming years.
Broken Arrow, Oklahoma
Old Greenwich, Connecticut