07.01.15

Sell-Side Services for a Middle Market Private Equity Firm

Go Back | Share This | Print

Business Issue:

Riveron’s private equity client has strong relationships with its private and institutional investors, and quickly obtains capital on a deal-by-deal basis for acquisitions and recapitalizations. This particular client focuses its investment efforts on opportunities such as bankruptcies, turnarounds, and other challenging situations (e.g. labor issues, environmental challenges, carve-outs, etc.). Typically, the firm buys companies in industrial, heavy manufacturing, and related service industries, and believes it can generate high returns on invested capital by buying distressed assets, partnering with experienced operators, and building large businesses through reinvestment of intellectual and equity capital for both organic and acquisition growth.

Our client began with an agreement to purchase several homebuilding product distribution centers from a large multi-national conglomerate, and a plan to sell the newly formed business through a public transaction. The deal leader contacted us to assist with the acquisition, carve-out, and initial public offering preparation.

Riveron Approach:

We began our engagement by providing financial due diligence and analysis in evaluating the assets targeted for acquisition. Evaluation of the assets proved challenging, because no stand-alone financial records were maintained for the distribution centers, either individually or as a group. However, we were able to assist our client by evaluating the quality of assets and margins of the business, and modeling pro forma business expenses of the go-forward entity. Ultimately, we assisted our client by gathering data, providing consultation regarding back office processes, and recommending steps that enabled our client to recreate historical financial records for previously unaudited operations. We successfully led the business through a stand-alone financial statement audit by a Big Four firm, and supported preparation of all other necessary documentation needed for an S-1 filing.

Benefit to Our Client:

Given our experience with carve-outs, post-transaction audit support, and initial public offerings, we were able to assist our client with a multitude of steps toward the S-1 filing. By completing a project that was deemed impossible due to the challenging business circumstances, unavailability of stand-alone records, and aggressive timelines, we were commended by our client and earned a long-term, loyal business relationship.

Go Back | Share This | Print

More Case Studies

How to pick a solid advisory team to help with a sale

03.20.17

How to pick a solid advisory team to help with a sale

If you’re on an executive team preparing for sale, you are…

ERP System Implementation for a Multi-National Medical Devices Company

08.22.16

ERP System Implementation for a Multi-National Medical Devices Company

Business Issue Due to an aging and ineffective ERP, the com…