Case Studies
Case Study One:
Brandon consulted with an east coast service and replacement HVAC and Plumbing business that also operated a profitable fuel oil delivery business as a major portion of their work mix. The business was a second generation business and was owned equally by three siblings. Brandon assisted his clients in valuing, negotiating and structuring the transaction. The business was sold to a Private Equity investor. One sibling was able to retire immediately and two siblings transitioned out of the business after a short transitional period. The structure of the transaction included a bonus one-year earnout, which was paid to Brandon’s client when the Company reached earnout goals one year after the original close of the transaction.
Case Study Two:
Brandon consulted with a mid-west service and replacement HVAC business and guided his client in the sale to a Private Equity investor. The owner of the business previously had conversations with one potential investor and was offered what would have been one-quarter of what Brandon was able to negotiate. Prior to engaging with Brandon, the owner had conversations without representation and could have potentially sold himself significantly short. The business owner was thoughtful enough to seek professional assistance, which ultimately contributed millions of additional dollars to his family’s retirement. Under Brandon’s guidance, the client and his family received multiple offers, all which significantly exceeded the original offer.
Case Study Three:
Brandon consulted with a business owner of a residential service and replacement HVAC business in Texas. The owner was determined to sell the successful business to his manager and asked Brandon to value and structure the transaction as well as source SBA financing (Live Oak Bank) for the buyer. In addition, Brandon introduced an attorney from his network to the seller who was able to complete all legal aspects of the transaction for the seller. The buyer was financially savvy and was able to purchase the business with personal funds used as a down payment and the remainder from SBA funding. Brandon and the business owner communicated for over 24 months prior to actually engaging in the sale to the manager, as the business continued to grow and prosper. The actual transaction time was a short six months. The business owner retired immediately post-transaction as planned.
Case Study Four:
Brandon assisted a large and profitable residential service and replacement HVAC and plumbing business sell to the right Private Equity partner. The business was a second generation business. The father (part owner) had retired several years prior. One sibling managed the business. Brandon assisted the family find the right partner for the business by conducting multiple on-site visits with several Private Equity investors. Brandon negotiated the transaction so that his client could economically go with the Private Equity investor that he felt the most comfortable with. To negotiate the economics, Brandon diligently worked on both the structuring (to avoid client taxes) as well as overall purchase price. Brandon’s client felt comfortable enough with the Private Equity investor and rolled a part of his proceeds back into the new entity. The client continues to manage his now former family’s business and enjoys the partnership with the Private Equity partner.
Case Study Five:
Brandon consulted with a business owner of a residential service and replacement HVAC business in California. The owner was determined to sell the successful business, but had a desire to continue to work in the business. Brandon presented the business to multiple Private Equity investors and found the right fit for his client. Originally intending to take all cash at close, Brandon’s client agreed to rolling over 30% of the proceeds into the new entity. A year and a half after the close, the Private Equity inventory recapitalized and Brandon’s client received a significant upside to the 30% from the roll over. Brandon’s clients was very satisfied with the 70% cash at close and extremely satisfied with the upside received for the 30% rollover. He remains employed and runs the business to this day.
Case Study Six:
Brandon consulted with an Arizona based service and replacement HVAC business and guided his client in the sale to a Private Equity investor. The business was owned equally by a father and son. The father was retired and not active in the business. The son managed the business. The plan was to sell the business to a Private Equity investor enabling the father to be fully retired. The son planned to stay active in the business post sale and remains active. Brandon assisted his clients in valuing and structuring the transaction as well as finding the right Private Equity partner for his client. Many potential investors were considered prior to moving forward to a letter of intent and then to a successful close of the transaction.