Legacy has been acquired by Enertech
Technology Media & Communications
Case study
The Challenge
- The client was a family-owned, full-service Telecommunication Infrastructure and Wireless Services company serving the Pacific North-West market.
- The company was growing steadily and was desirous of a partial liquidity event for senior members of the family to secure their legacy and retirement as well as provide future growth capital.
- Their goal was to align with a partner who shared their vision and values and was a larger player in order to scale their critical relationships with the nation’s carriers (Verizon T-Mobile etc.).
The Solution
- The challenge Merit Investment Bank faced was to help the company re-orient and correct some revenue recognition issues, bring greater acuity to the financial reporting, as well as articulate how this company achieved outlier margins while growing steadily.
- The Merit Investment Bank team articulated the business model, validating the repeatability and sustainability of revenues and the high margin nature of that strategy yielding significant interest from both a strategic and financial buyer.
- After the recommendations were instituted, Merit Investment Bank leveraged its deep experience and buyer network, as well as utilizing a strategic auction process, to find a buyer synergistic to the seller’s business.
The Results
- By running a broad auction and leveraging deep industry expertise and relationships, our process yielded 12 IOI’s and a final sale above owners’ expectations to a Private Equity firm with two holdings in the space.
- Owners rolled some equity and are still shareholders in the larger entity.
- Within 1.5 years of the initial transaction, the seller recapitalized with the parent company for the “second bite of the apple”. Within 14 months of that event, the acquired entities were sold again to another up-market PE firm, enabling the sellers to receive a “third bite of the apple."
TESTIMONIALS
“
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.
Jeff Rubenstein
CEO at SmartProcure
acquired by Thompson Street
Get in touch
With offices throughout the United States and serving clients globally, Merit Investment Bank is ready when you are.
info@meritinvestmentbank.com
Phone
(253) 327-1490
Proud Partners
Merit Investment Bank is a proud partner of CDI Global, providing us with a strong international network. This partnership extends our reach, allowing us to source acquisition opportunities across the globe.
CDI Global is a leader in middle-market, cross-border transactions. Our international presence, industry expertise, and market command ensure our ability to help you reach your goals.
