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SALE & CAPITAL RESTRUCTURE OF EQUIPMENT MAINTENANCE COMPANY |
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Saturday, 25 April 2009 07:20 |
- Capital Restructure ATMR – an equipment maintenance company
- ATMR, employs approximately 100 staff, and specialises in electric motor, gearbox, transformer and pump repairs to the mining services, energy, rail and defence sectors.
- The Shareholders / Management (same parties) of ATMR wished to pursue an aggressive growth strategy including both organic and acquisitive growth initiatives.
- The vendors decided that they would prefer to seek a financial partner to assist with this next stage of growth. The shareholders sought to ‘take some money off the table’ and find a party that would fund the capital required for growth.
- IFL worked with the business to:
- Capture and document their business plan;
- Develop a financial model of the business and an information memorandum describing the business and its growth potential;
- Identify likely bidders from trade & private equity (competitive issues limited the target list);
- Manage the sale process, including co ordination of legal and accounting advisors & due diligence.
- A competitive sale process was run for ‘up to 100%’ of the equity of the company with both trade and private equity buyers submitting bids. A competitive sale process was run for ‘up to 100%’ of the equity of the company with both trade and private equity buyers submitting bids.
- The vendors selected HMG (Heavy Maintenance Group), a roll-up vehicle established by mid-market private equity investor, RMB Capital Partners. The strategy being pursued by HMG was consistent with the ATMR strategy – but was 12 months further down the track.
- ATMR shareholders received a combination of a cash payment on completion and substantial equity in the HMG vehicle.
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