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Sold To Global Dominion Access, S.A.

The Company led the design and construction of hundreds of the most sophisticated chimney and stack projects around the globe including five of the tallest 20 chimneys in the world.  The company provides engineering and contracting services for the design, construction and maintenance of tall structures, primarily for the power industry including steel stacks, concrete chimneys, combustion turbine exhaust systems, silos and cooling towers throughout the world.

What made the business attractive to buyers?

  • Recognized leader in chimney industry over 30 years
  • Worldwide relationships with power producers in both renewable and traditional energy
  • World renowned team of engineers, project managers and field personnel
  • In depth understanding of requirements for international tall structure building

Challenges:

  • Self funded owner competing against multi-national companies
  • Decreasing opportunities for US based work

Why did the Owner want to sell?

In his early 60s, the owner wanted to decrease the risk to him and his family in having most of his net worth tied to the business.  At the same time, he saw an opportunity to partner with a deep pocketed investor who could fund large international projects that the company was well positioned to construct.

Beacon’s Role and Results:

Beacon Equity Advisors assisted with the valuation, marketing, deal negotiations and due diligence necessary to bring about a deal with a publically traded company based in Spain and projects and entities on all five major continents.

The Process:

Beacon marketed the business for approximately nine months to identify private equity firms with the industry knowledge and strategic buyers with strong financials throughout the world.

Beacon worked closely with approximately 50 buyers who showed interest after reviewing the Profile.

Beacon worked with the seller to narrow the field to 10 interested buyers who submitted an indication of interest letter (IOI).

Two buyer groups were invited to company headquarters for a meeting with management over two days.

Beacon worked with the seller’s CPA and attorneys to negotiate with the public company’s CFO, based in Spain, and attorneys to complete a deal that provided the seller with cash, the elimination of personal risk associated with bank debt and an additional earnings opportunities in the form of an employment contract and earn out from the recapitalized company.

The buyer was chosen based on the quality of their deal structure as well as their access to the capital necessary for the company to compete for large chimney projects with long completion times and significant profitability.