Tag Archive for: AllstonAdvisoryGroup

COVID-19 Impact on M&A

COVID-19’s Impact on M&A

/in /by

Many merger and acquisition processes are on hold while buyers and sellers seek greater clarity on COVID-19’s health and economic effects. COVID-19’s impact on M&A continues to reshape transaction planning, buyer expectations, and deal execution. Although transaction activity has slowed, companies continue preparing for future opportunities as markets adjust to rapidly changing conditions.

Business owners considering a sale should expect the pandemic to influence nearly every stage of the acquisition process. Buyers, lenders, and advisors are reassessing risk, valuation, and transaction structures. As a result, successful transactions will require greater planning, flexibility, and collaboration than before.

Several areas now deserve increased attention.

Preparing for Sale. Business owners should determine whether now is the right time to pursue a transaction. They should also evaluate current valuations and consider whether buyers will recognize the company’s long-term value despite recent disruptions.

Timing. Transactions will likely require additional time to complete. Travel restrictions, remote work, lender requirements, and extended due diligence may delay the closing process.

Due Diligence. Buyers will conduct more extensive due diligence across financial, legal, operational, and commercial matters. They will closely examine force majeure provisions, supply chain risks, emergency preparedness, employee matters, and insurance coverage.

Acquisition Agreements. Buyers and sellers should expect increased negotiation over risk allocation. Acquisition agreements may include expanded representations and warranties, interim operating covenants, earn-outs, additional closing conditions, termination rights, and special indemnification provisions addressing COVID-19-related findings.

Financing. Buyers should confirm that attractive long-term financing remains available before committing to a transaction. Lenders may impose additional underwriting requirements or modify financing terms as market conditions evolve.

Business owners should work closely with experienced M&A advisors throughout this period. Professional guidance can help navigate market volatility, manage transaction risk, and position a company for a successful sale when conditions improve.

The Doomsday Ratio

/in /by

Is your company prepared to survive a doomsday scenario? Economic uncertainty can emerge quickly and challenge even well-managed businesses. Without meaningful financial measurements, business owners may struggle to understand how their companies are truly performing.

Financial ratios provide objective benchmarks for evaluating a company’s financial health. They convert information from the income statement and balance sheet into standardized measurements. Owners can compare those measurements over time, against competitors, or across the broader industry. These comparisons often reveal strengths, weaknesses, and trends that traditional financial statements may not immediately identify.

Liquidity ratios deserve special attention during periods of economic uncertainty. These ratios measure a company’s ability to satisfy short-term obligations without raising additional capital. Strong liquidity provides flexibility, supports daily operations, and helps businesses withstand unexpected disruptions.

Common liquidity ratios include the current ratio, quick ratio, days sales outstanding, and the Doomsday Ratio. Each ratio measures liquidity from a different perspective and provides valuable insight into financial stability.

The Doomsday Ratio offers the most conservative measure of liquidity. It assumes the worst possible operating environment and ignores every current asset except cash and cash equivalents. The ratio is calculated by dividing cash and cash equivalents by current liabilities. The result indicates whether available cash can satisfy short-term obligations without relying on receivables, inventory, or external financing.

The Doomsday Ratio becomes even more valuable when tracked over time. A declining ratio may signal increasing financial pressure before more serious problems develop. An improving ratio may indicate stronger cash management and greater financial resilience.

No single financial ratio tells the entire story. Business owners should evaluate multiple ratios together and consider industry benchmarks when assessing financial performance. An experienced M&A advisory team can help interpret these measurements, identify potential risks, and recommend strategies that strengthen financial performance before a crisis occurs.

Delta Services, LLC has been acquired by The State Group, Inc.

Delta Services, LLC has been acquired by The State Group, Inc.

/in /by

ABOUT THE TRANSACTION:

Delta Services, LLC (the “Company” or “Delta”) has been acquired by The State Group Inc.

DELTA SERVICES, LLC:

The Company launched in 2004 and operates from Louisville, Kentucky. Delta Services functions as a privately owned, bonded, and fully insured electrical contractor. The team delivers electrical construction, communication systems, fire and security systems, safety services, utility distribution, and PLC controls. Delta operates across Kentucky, Southern Indiana and surrounding states. The Company employs over 230 union electricians and 35 additional staff members.

THE STATE GROUP, INC.:

The State Group launched in 1961 and operates from Toronto, Canada. The company provides comprehensive electrical and mechanical trade services to Fortune 100 clients. It serves the power generation, automotive, oil and gas, communications, metals and transportation industries. The State Group is backed by New York-based private equity firm, Blue Wolf Capital Partners LLC, and Vancouver-based private equity firm, Yellow Point Equity Partners. The company operates 18 offices throughout the United States and Canada. Additionally, it employs over 800 professionals and skilled trades people across eleven crafts. These teams complete nearly 2,000 projects each year. They repair, maintain and construct critical infrastructure. The team prioritizes safety and delivers consistent, high-quality execution.

“Our successful sale to State Group is a testament to our team’s collective effort to be the best in providing high quality, value added electrical solutions for our customers and to our commitment to the local communities we serve,” said Kevin Waldron, President of Delta Services. “We’re excited to join State Group as we begin the next chapter of Delta Services’ growth and success.”

“The addition of Delta Services provides an exciting opportunity to partner with a company aligned with our own values in prioritizing quality of service, not price,” said Thomas Santoni, President and CEO of The State Group. “Delta Services has a strong brand built on a foundation of nearly 40 years of high quality service. We are proud to welcome Kevin and the entire Delta team into the State Group family as we grow our existing business in Louisville and expand our footprint into greater Kentucky and Southern Indiana.

Allston Advisory Group served as the exclusive financial advisor to Delta Services, LLC, and conducted a confidential, competitive sale process that included both strategic and financial buyers.

ABOUT ALLSTON ADVISORY GROUP:

Allston Advisory Group is an experienced M&A advisory firm providing mergers & acquisitions, business valuations, and exit strategies, to lower middle market companies. The firm has an established track record of serving corporate clients across a broad spectrum of industries throughout the United States. Allston Advisory Group has the experience, professional fortitude, and quality of work that enable the firm to consistently deliver high-level results to its clients.

For additional information on this transaction, please contact one of our advisors.

NEWS SOURCES: 

Business Wire

EC&M

Crunchbase

Bloomberg

Comstock Brothers Electric Company, LLC has been acquired by The State Group, Inc.

/in /by

ABOUT THE TRANSACTION:

Comstock Brothers Electric Company, LLC (the “Company” or “Comstock”) has been acquired by The State Group Inc.

COMSTOCK BROTHERS ELECTRIC COMPANY, LLC:

The Company launched in 1999 and operates from Louisville, Kentucky. Comstock functions as a privately owned, bonded, and fully licensed electrical contractor. The team delivers power distribution, electrical construction, process controls, conveyors, and package handling solutions. Additionally, Comstock serves automotive clients and provides design-build and electrical testing services. Comstock Brothers Electric Company creates value through responsive service, strong diagnostic capabilities, and reliable execution. The team meets critical deadlines and consistently “Exceeds Energy Expectations.”

THE STATE GROUP, INC.:

The State Group launched in 1961 and operates from Toronto, Canada. The company provides comprehensive electrical and mechanical trade services to Fortune 100 clients. It serves the power generation, automotive, oil and gas, communications, metals and transportation industries. The State Group is backed by New York-based private equity firm, Blue Wolf Capital Partners LLC, and Vancouver-based private equity firm, Yellow Point Equity Partners. The company operates 18 offices throughout the United States and Canada. Additionally, it employs over 800 professionals and skilled trades people across eleven crafts. These teams complete nearly 2,000 projects each year. They repair, maintain and construct critical infrastructure. The team prioritizes safety and delivers consistent, high-quality execution.

Allston Advisory Group served as the exclusive financial advisor to the Comstock Brothers Electric Company, LLC, and conducted a confidential, competitive sale process that included both strategic and private equity buyers.

ABOUT ALLSTON ADVISORY GROUP:

Allston Advisory Group is an experienced M&A advisory firm providing mergers & acquisitions, business valuations, and exit strategies, to lower middle market companies. The firm has an established track record of serving corporate clients across a broad spectrum of industries throughout the United States. Allston Advisory Group has the experience, professional fortitude, and quality of work that enable the firm to consistently deliver high-level results to its clients.

For additional information on this deal, please contact one of our advisors.

Express Waste Removal and Recycling has been Acquired by a Private Investment Group

/in /by

ABOUT THE DEAL:

Express Waste Removal and Recycling (“the “Company” or “Sellers”) has been acquired by a private investment group (the “Buyer”).

Headquartered in Ellettsville, Indiana, Express Waste Removal and Recycling has provided dependable, cost-effective waste collection and recycling services to residential and commercial customers throughout Bloomington, Ellettsville, and the surrounding Monroe County area for more than a decade. Throughout its history, the Company established a reputation for exceptional customer service, reliable operations, and disciplined route density. These strengths supported consistent growth and created a scalable operating platform that attracted buyer interest.

The acquisition positions the Company for continued growth while providing the Sellers with a successful ownership transition. Furthermore, the transaction allows the Buyer to expand its presence in an attractive market through an established business with a loyal customer base and an experienced operating platform.

Allston Advisory Group served as the exclusive financial advisor to Express Waste Removal and Recycling throughout the transaction. The engagement included a business valuation, transaction planning, buyer identification, coordination of due diligence, negotiation support, and management of a confidential sale process. By creating a competitive marketplace among qualified buyers, Allston helped position the Company to achieve the Sellers’ liquidity objectives while maintaining strict confidentiality throughout the transaction.

The successful completion of this transaction reflects the importance of careful planning, disciplined execution, and effective collaboration among the Sellers, Buyer, and professional advisors. Allston Advisory Group is proud to have represented Express Waste Removal and Recycling during this important milestone.

ABOUT ALLSTON ADVISORY GROUP, LLC:

Allston Advisory Group is an experienced mergers and acquisitions advisory firm serving lower middle market businesses throughout the United States. The firm provides sell-side advisory, business valuations, and exit planning services across diverse industries. Allston combines transaction expertise with personalized client service to help business owners maximize value and achieve successful outcomes.

For additional information on this transaction, please contact one of our advisors.

PEDIA RESEARCH, LLC HAS BEEN ACQUIRED BY QUALMEDICA RESEARCH, LLC

/in /by

ABOUT THE TRANSACTION:

Pedia Research, LLC (“Pedia” or the “Company”) has been acquired by Qualmedica Research, LLC (“Qualmedica” or the “Buyer”).

Headquartered in Evansville, Indiana, Pedia Research, LLC has conducted clinical research for pharmaceutical and healthcare organizations for more than twenty years. The Company operates with a focused mission of “Improving Health Through Research.”

Pedia’s multidisciplinary team includes physicians, scientists, nurses, study coordinators, and administrative specialists. Together, they conduct clinical studies involving infants, children, adolescents, and adults. These studies help evaluate the safety and efficacy of new and improved pharmaceutical and healthcare products.

Throughout its history, Pedia has provided important clinical research data to pharmaceutical companies developing treatments for various diseases and conditions. Additionally, the Company advances medical knowledge through published research findings and contributions to scientific literature. Pedia has also developed innovative approaches to participant recruitment and clinical trial execution. These capabilities have strengthened the Company’s relationships with sponsors and supported its commitment to efficient, high-quality clinical research.

Qualmedica Research, LLC is a multi-site clinical research organization with more than twenty years of experience conducting pharmaceutical research. The company partners with physicians and sponsors to advance safe, effective, and meaningful therapeutics for patients. Furthermore, Qualmedica conducts Phase II, III, and IV clinical trials across a broad range of therapeutic areas. Its customer base includes more than 100 pharmaceutical companies and contract research organizations.

The acquisition brings together two experienced clinical research organizations with complementary capabilities and a shared commitment to advancing patient health. Moreover, the transaction provides Pedia with additional resources and infrastructure to support its continued development.

Allston Advisory Group served as the exclusive financial advisor to Pedia Research, LLC throughout the transaction process. Allston performed an Analysis of Value and developed a confidential marketing strategy for the Company. Additionally, Allston identified prospective buyers and managed a competitive sale process on behalf of the Sellers. As the transaction progressed, Allston coordinated buyer communications, assisted with due diligence, and supported negotiations through closing. These efforts helped maintain transaction momentum while allowing Pedia’s leadership to remain focused on the business.

ABOUT ALLSTON ADVISORY GROUP, LLC:

Allston Advisory Group is an independent mergers and acquisitions advisory firm serving lower middle market businesses throughout the United States. The firm provides sell-side advisory, business valuations, and exit planning services to privately held companies across diverse industries. Allston combines practical transaction experience with a disciplined and confidential approach to mergers and acquisitions. The firm works closely with business owners to understand their objectives and manage each stage of the transaction process.

For additional information about this transaction, please contact one of our advisors.

Independent Stave Company

KENTUCKY BOURBON BARREL HAS BEEN ACQUIRED BY INDEPENDENT STAVE COMPANY

/in /by

ABOUT THE TRANSACTION:

Kentucky Bourbon Barrel (“KBB” or the “Company”) has been acquired by Independent Stave Company (“ISC” or the “Buyer”).

Headquartered in Louisville, Kentucky, KBB operates at the center of one of the world’s most important bourbon markets. The family-owned company supplies high-quality, ready-for-filling used barrels to distilleries, wineries, and breweries worldwide.

KBB has built a reputation around the quality and diversity of its used bourbon and whiskey barrels. Previously filled barrels can impart distinctive aromas, flavors, and characteristics to spirits, wine, and beer. As a result, these barrels provide producers with additional opportunities to develop unique products and flavor profiles.

Independent Stave Company is a family-owned cooperage serving customers in more than 40 countries. The Boswell family founded ISC in 1912, establishing a business centered on cooperage craftmanship, innovation, and customer service. Today, ISC produces new oak barrels and other cooperage products for the spirits, wine, and brewing industries. The acquisition of KBB expands ISC’s ability to provide customers with sought-after previously filled barrels. Furthermore, the combination broadens access to barrels that previously aged bourbon, whiskey, and other distinctive liquids. These barrels can provide unique characteristics for customers developing new or differentiated products.

Tim Ratliff, President and co-owner of KBB, expressed enthusiasm about partnering with an organization sharing the Company’s vision and founding principles. He also emphasized KBB’s continued commitment to quality, service, product availability, and a diverse barrel portfolio. The transaction brings together two family-owned companies with complementary capabilities and strong positions within the cooperage and barrel industries. Additionally, Independent Stave Company provides KBB with resources and industry experience to support future opportunities while maintaining its commitment to customers.

Allston Advisory Group served as the exclusive financial advisor to Kentucky Bourbon Barrel and its owners. Allston performed an Analysis of Value and developed a confidential marketing strategy for the Company. Additionally, Allston identified prospective buyers, managed negotiations, assisted with due diligence, and facilitated the transaction through closing. Consequently, the transaction provided liquidity to KBB’s owners while establishing a strategic partnership with an experienced industry leader. The transaction structure also incorporated a stock exchange designed to address the Sellers’ objectives. Importantly, the combination provided KBB’s employees and customers with continuity under an established, well-capitalized new owner.

ABOUT ALLSTON ADVISORY GROUP:

Allston Advisory Group is an independent mergers and acquisitions advisory firm serving lower middle market companies throughout the United States. The firm provides sell-side advisory, business valuations, and exit strategies, to privately held companies across diverse industries. Allston works closely with business owners to understand their financial, strategic, and personal objectives before entering the market. The firm then manages a confidential and disciplined transaction process from initial preparation through closing.

For additional information on this transaction, please contact one of our advisors.

NEWS SOURCES: 

BRASCH CONSTRUCTORS, INC. HAS BEEN ACQUIRED BY A.L. POST, INC.

/in /by

ABOUT THE DEAL:

Brasch Constructors, Inc. (“Brasch” or the “Company”) has been acquired by A.L. Post, Inc. (“A.L. Post” or the “Buyer”).

Established in 1989 and headquartered in Louisville, Kentucky, Brasch is an experienced commercial construction company serving clients across multiple industries. The Company provides construction services ranging from site evaluation and preconstruction planning to new construction and design-build projects. Throughout its history, Brasch has developed extensive experience managing both large and small construction projects. The Company’s capabilities allow it to coordinate complex projects from initial planning through completion.

Established in 2001, A.L. Post, Inc. specializes in the engineering, design, and construction of commercial and industrial facilities. The company is also headquartered in Louisville, Kentucky. A.L. Post has completed projects across numerous states and serves clients with diverse construction requirements. Its portfolio includes historic, medical, dental, faith-based, commercial, and industrial projects. Furthermore, A.L. Post brings engineering, design, and construction capabilities together within an integrated approach to project delivery. These capabilities complement Brasch’s established construction experience and presence in the Louisville market.

The acquisition combines two Louisville-based construction companies with complementary experience and capabilities. Moreover, the transaction creates opportunities to leverage their combined resources, industry knowledge, and construction expertise.

Allston Advisory Group served as the exclusive financial advisor to Brasch Constructors, Inc. and its owner. Allston performed a valuation assessment and helped prepare the Company for the transaction process. Additionally, Allston developed and managed a confidential sale process on behalf of the sellers. The firm coordinated communications between the parties and assisted the sellers throughout the negotiations. As the transaction progressed, Allston assisted with due diligence and worked alongside the seller’s other professional advisors. The firm also helped address transaction issues and maintain momentum through closing. The successful transaction provided Brasch’s owners with an exit while transitioning the Company to an experienced industry buyer. Importantly, the combination positioned the business within an established construction organization with complementary capabilities and resources.

ABOUT ALLSTON ADVISORY GROUP:

Allston Advisory Group is an independent mergers and acquisitions advisory firm serving lower middle market companies throughout the United States. The firm provides sell-side advisory, business valuations, and exit planning services to privately held companies across diverse industries. Allston works closely with business owners to understand their objectives and prepare their companies for the transaction process. The firm then manages a disciplined and confidential sale process from initial preparation through closing.

For additional information on this transaction, please contact one of our advisors.

U.S. NUT AND BOLTS HAS BEEN ACQUIRED BY BOLTS & NUTS CORP

/in /by

ABOUT THE TRANSACTION:

U.S. Nut and Bolts (the “Company”) has been acquired by Bolts & Nuts Corporation (“Bolts & Nuts” or the “Buyer”).

Headquartered in Louisville, Kentucky, U.S. Nut and Bolts operated as a full service distributor of fasteners and related products. For nearly ten years, the Company has served customers throughout the commercial, industrial and manufacturing sectors.

U.S. Nut and Bolts developed its business by providing customers with reliable access to essential fastener products. Additionally, its Louisville location provided an established presence within an important manufacturing and distribution market.

Bolts & Nuts began operations in Chattanooga, TN, in 1979 as a regional fastener distributor. Over time, the company expanded its capabilities, geographic reach, and customer base beyond its original regional footprint.

The acquisition of U.S. Nut and Bolts represented another step in the Buyer’s continued expansion. Furthermore, the Louisville location complemented its existing operations and facility in Danville, Kentucky. Through the acquisition, Bolts & Nuts strengthened its ability to serve manufacturers and original equipment manufacturers throughout the region. The transaction also expanded its presence across Kentucky, southern Indiana, and Ohio.

Randy Crowdis, CEO of U.S. Nuts and Bolts, said, “In combining with Bolts & Nuts, our team acquires the advantages of global scale while marrying up with a company whose core values are focused on delivering value to our four key stakeholders: customers, team members, community, and suppliers.”

Allston Advisory Group served as the exclusive financial advisor to U.S. Nut and Bolts and its owner. Allston performed an Analysis of Value and prepared a comprehensive Confidential Information Memorandum. Additionally, Allston developed and managed a confidential sale process designed to identify qualified prospective buyers. The firm coordinated buyer communications, assisted with negotiations, and supported the seller throughout due diligence.

Allston also worked alongside the seller’s other professional advisors as the transaction progressed toward closing. Ultimately, the transaction provided liquidity to the owner while transitioning the Company to an established, high-growth, and well-capitalized strategic buyer.

ABOUT ALLSTON ADVISORY GROUP:

Allston Advisory Group is an independent mergers and acquisitions advisory firm serving lower middle market businesses through the United States. The firm provides sell-side advisory, business valuations, and exit planning services to privately held companies across diverse industries. Allston works closely with business owners to understand their objectives and prepare their companies for the transaction process. The firm then manages a disciplined and confidential sale process from initial preparation through closing.

For additional information on this transaction, please contact one of our advisors.

NEWS SOURCES:

Private Capital Markets: Is Now the Time to Sell?

/in /by

The private capital markets are experiencing strong transaction activity, favorable valuations, and significant demand for quality middle market companies. For business owners considering an exit, current conditions deserve careful attention. Robert T. Slee, an investment banker and influential author, examines private market cycles in Private Capital Markets: Valuation, Capitalization, and Transfer of Private Business Interests. Slee’s research suggests that U.S. private markets operate within approximately ten-year transfer cycles.

According to this framework, the market currently favors sellers. Strong earnings, available financing, and significant buyer demand continue to support attractive valuations for quality businesses. However, favorable market conditions rarely continue indefinitely. Slee’s market-cycle analysis suggests this seller’s market may begin weakening toward the end of 2017. Thereafter, the market could enter a period of uncertainty through approximately 2020. The framework anticipates a buyer’s market following that neutral period. Under this scenario, weaker conditions could continue through approximately 2023 before the cycle begins strengthening again.

Meanwhile, several factors continue supporting today’s active M&A environment.

Private equity groups maintain substantial capital (“dry powder”) available for acquisitions and continue pursuing quality companies. In particular, they seek businesses with sustainable cash flows, strong management teams, defensible market positions, and meaningful growth opportunities. At the same time, strategic buyers continue using acquisitions to supplement organic growth. Acquisitions may provide immediate access to customers, geographic markets, products, technologies, employees, and other strategic capabilities. Demographic trends create another important consideration within the private capital markets. A significant population of middle market business owners are approaching traditional retirement age. Consequently, more owners may pursue liquidity and succession strategies during the coming years.

An increasing supply of businesses for sale could eventually affect market dynamics. More sellers competing for buyer attention may place pressure on valuations, particularly if economic conditions or financing markets weaken. For business owners, these trends reinforce the importance of early exit planning. Preparing a company for sale may require several years of deliberate work. Owners should strengthen earnings, develop management, diversify customers, improve financial reporting, and address identifiable business risks. They should also establish realistic valuation expectations and clearly define their personal and financial objectives.

No business owner can perfectly predict the next market cycle. Nevertheless, understanding conditions within the private capital markets will help owners make informed decisions about timing. For owners considering an exit within the next several years, 2016 provides an important opportunity to evaluate their alternatives. Early preparation creates flexibility and positions owners to act while market conditions remain favorable. Whether it’s selling to a private equity group, a strategic, or watching your “baby” flourish, Allston Advisory Group has the experience to assist you with the desired transaction for your business.

Allston Advisory Group is an experienced boutique M&A advisory firm providing a variety of services to lower middle market companies. See our footer for contact information.

(502) 742-2933
[email protected]
P.O. Box 21266, Louisville, KY 40221

Our Newsletter

Follow us: