Legacy has been acquired by Enertech

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."