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ETC Case Study
ETC Case Study

Transaction Description:

ETC is a middle-market provider of tolling solutions to government and governing agencies. As a top 5 tolling service provider with proprietary and current technology, the Company was seeking to increase market share with an industry leading platform. Merit Investment Bank put together a joint team to market them to over 300 prospective strategic and private equity buyers.

Case Study

The Challenge

Owned by an international conglomerate based in the EU, the company was hamstrung by the inability to get approval to bid on new projects to drive topline revenue. Lacking the ability to bid on new work, the company would be forced to simply ride the revenue from existing contracts and ultimately be absorbed by a competitor. Customer concentration issues with very large government contracts made many buyers balk at a transaction The tolling services market requires bonds to guarantee projects. However, the non-US owner was unrealistically uncomfortable guaranteeing new bonds and therefore wouldn’t allow new projects to be bid due to the fear of failing on delivery. The deal needed to close during the midst of 1st wave of the COVID pandemic.

The Solution

Merit Investment Bank put together a joint team of accomplished deal makers and experienced technology operators. Using our broad-auction process, Merit Investment Bank marketed to over 300 prospective strategic and private equity buyers. Over 100 of the recipients signed NDAs to get more information about the company. The deal was completed by July of 2020, less than three (3) months after signing the LOI. This transaction was accomplished through the leadership and coordination of Merit Investment Bank, CDI Global, and the Company to manage a smooth and timely process.

The Results

Ultimately, management was able to accomplish their objective of partnering with a new, proactive owner in the business where they are no longer hamstrung in bidding new projects, and the previous owner was able to remove the guarantees from their balance sheet. The Company is on track toward achieving their goals of 50% growth in 2021 and 2022.

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"The team at Merit Investment Bank works hard and puts in a lot of time and energy. And because of that, they're talking to people with a lot more sincerity than just putting out a deck. They went deeper and not only understood our strategy, but they understood how to pitch the right strategy to the folks on the other end of the transaction. They explained our business so a potential suitor understood how it could be integrated into their business.

Merit Investment Bank thought of a more strategic transaction and they built a better story. It's what's created more offers and what made the offers higher."

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Tom Fleck

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Chris Noorda

“I greatly appreciated Merit Investment Bank’s expertise and guidance throughout this process and appreciated, even more, their attention to the intangible things that were important to me and my company beyond just getting a deal done.”

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Marco Allegretti

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Private Equity / M&A Executive, Atlantia; SpA Managing Director, McKinsey & Co

Bill Adams

"I wanted to work with an Investment Banking firm that was going to be able to understand our business, get to know me and my team, and then not only help us secure the investor, but help us find the right investor because they understood what we really needed. We got that and more with Merit Investment Bank. Their strategic guidance, patience, and diligence were critical in getting this transaction finished, and was the difference maker in this process.”

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Howard Perea

"We are thrilled with the outcome Merit Investment Bank delivered for our family through the sale of the business. With their guidance, we were able to unlock significant shareholder liquidity while positioning the employees of the company for continued success within a growing platform.”

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D. Roberts

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Dave Carr

"Unlike many investment banks I've worked with during my career, Merit Investment Bank was attentive at all stages of our transaction, which really made a difference in achieving a great outcome."

CPA, Interim CFO

Mike Olson

“Through the broad auction, Merit Investment Bank got us another 75% above the offers that originally came in. We still have a piece of the company and I’m still able to run it. I feel good that our key employees are going to be secure in the future. It’s a win-win for everybody.”

Keith Jackson

"The team at Merit Investment Bank have provided invaluable assistance in stabilizing and growing my company. They’ve helped with both short-term challenges and long-term planning. Their experience running multiple businesses like mine and vast network of contacts have brought value to my company and to me personally. If you want help taking your business to the next level, I highly recommend Merit Investment Bank."

Owner of Industrial Revolution, Inc.

Carl Peterson

"As a business/transactional attorney, I have had the opportunity to work with many investment bankers in the M&A arena. The Merit Investment Bank team is, without question, the best in the local middle-market space. They make clients feel comfortable by both listening to and provide thoughtful advice for legal counsel. Most importantly, they are able to negotiate a great deal.

Quite refreshingly, Merit Investment Bank puts the needs of the client above closing a deal – something very rare in the M&A world. I give my highest possible recommendation to the Merit Investment Bank team."

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Gary Goeldner

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Walt Maas,

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