Middle-market private equity (PE) dealmaking in the United States didn’t lose its record momentum in the second quarter of 2021, some of which carried over into Q3, thanks to sustained economic recovery, ample debt, and plenty of available capital, according to data from Pitchbook. U.S. GDP grew at an annualized 6.5% in Q2 but slowed to 2% in Q3, mainly due to global supply chain issues. 

PE fundraising is also holding strong, with the 87 U.S. middle-market funds raised so far this year on course to set a new record. Additionally, the $68.4 billion in capital raised in 2021 is on track to be the second-highest annual total since 2010.

Most deal activities were put on hold for several months after March of 2020 and the onset of the COVID-19 pandemic, but 2021 and early 2022 may be the right time to sell. The following factors are affecting the viewpoint of sellers of privately-owned companies: 

• Some owners are now more heedful of another crisis and how it could affect their businesses. 
• Many owners no longer wish to sustain efforts and risks that come with their businesses. 
• Owners who worked remotely during the pandemic got accustomed to more flexible schedules and free time. 
• Numerous owners nearing retirement are worried about the possibility of higher corporate, personal income, capital gains, and dividend taxes. 
• Because wealth built up in private companies is not easily converted to cash, some owners have focused on the fact that after-tax proceeds from a sale will last for a long period of time.

So far this year, the largest share of PE deals has taken place in the lower to middle markets, with deals of less than $1 billion making up nearly 70% of all deals. 2021 remains on pace to easily surpass the prior annual record from 2019. At the end of the year, numbers are expected to be even more impressive as investors may hurry to close deals before the year comes to a close. 

According to the Golub Middle Market Index, U.S. middle-market companies registered 21% revenue growth in the third quarter of this year. In addition, direct lending funds account for most middle-market LBO financing and reached record fundraising levels in the second quarter. 

Add-ons increased as a share of PE deals. Middle-market firms looked to add mid-sized aggregators and sought out M&A deals to expand platforms, diversify the value chain, and embrace ESG principles. 

There was also robust exit activity in the middle market, as valuations were desirable and investor confidence was high. So far this year, the market hosted an estimated 430 exits with a combined value of $87.3 billion. Soaring valuations mean that many GPs meet their investment goals earlier than expected, driving many to cash in on investments ahead of schedule. 

Smaller, strategic exits are dwindling in the hospitality and travel sectors for expected reasons after the pandemic impacts. Middle-market sponsors are holding onto investments in these pandemic-stricken sectors. In the second quarter of 2021, there were almost zero exits of hotels, in-person dining, travel providers, or other related companies. 

Secondary buyouts are also following an upward trend. So far this year, SBOs account for nearly 62% of all middle-market exits. Buyout firms are taking advantage of limited partners’ healthy appetite for private market exposure as well as the record deal activity that enabled firms to fundraise at a very fast pace. While first-time funds and emerging managers put up positive numbers in 2021, some bigger LPs put less investment into large multi-strategy firms or shifted it to new products offered by those with whom they already had a relationship. 

Even amid all this positive activity, middle-market firms in the U.S. are still facing other challenges. While unemployment rates have improved from 2020, there is still a record number of unfilled jobs, causing major labor shortages in sectors such as manufacturing, healthcare, and hospitality. These circumstances are causing firms to focus more on deals that acquire key talent and automated technologies that help with employee management and retention. The sector of senior care has been hit particularly hard by labor shortages, which is likely to result in increased consolidation by home care platforms. Additionally, insurance brokerages, wealth management firms, and registered investment advisors (RIAs) all witnessed record M&A activity in the first half of this year. 

PE firms are also pursuing more intricate opportunities to expand lines of business, end-market exposures, and product value chains. Such game-changing add-on acquisitions can be especially effective for vertical software deals because complementary products can be woven into multi-capability platforms to create all-in-one solutions that are good for customer retention.

Deal activity is also being driven by environmental, sustainability, and governance (ESG) initiatives. ESG has moved into the forefront for businesses this year. Transactions in the renewables market represent middle-market opportunities to grow a platform into a sector leader because of the market’s highly fragmented nature. Firms in the middle market are also pursuing add-on acquisitions to better align their portfolio companies with sustainability initiatives, whether to meet changing consumer sentiment or lower capital costs by lowering carbon emissions.

Benchmark International is pleased to announce the acquisition of Northumberland-based Coastal Retreats to Norwich-based Original Cottages.

Benchmark International has been named as one of the 50 Best Workplaces of the Year 2021 by The Silicon Review. The list is handpicked from different areas and recognizes businesses that attract both talent and clientele and stand out with regards to unique and positive company culture.  

A very important part of selling your business occurs after the business has been sold. The transition period, also known as the handover period, begins when the exiting owner remains with business for a period of time to assist the new owner with taking control of the company. The transition period should be carefully planned and thought through in order to ensure that it is well executed when the time comes. It can make a great deal of sense to begin working on these details early on in the sale process.

Benchmark International won three prestigious awards at the 20th Annual M&A Advisor Awards, presented by The M&A Advisor. The winners were announced at the Gala Ceremony live event held in New York City on November 17, 2021. The awards won by Benchmark International included:

 Investment Banking Firm of the Year

M&A Deal of the Year ($100MM to $250MM)

Professional Services (B2B) Deal of the Year

These awards are known as the Oscars of the M&A world, serving as the industry benchmark for dealmaking excellence, recognizing the leading M&A transactions, restructurings, deal financings, products/services, firms, and professionals. Benchmark International took top billing over other well-known firms such as Raymond James, Goldman Sachs, and KPMG.

Gregory Jackson, CEO of Benchmark International, stated, "We are immensely proud of our team for such honorable achievements. We will continue to pursue only the highest of standards for our clients and to maintain our role as a leader in the world of mergers and acquisitions."

"These awards speak volumes about how much Benchmark International has become game-changers in the middle market. Congratulations to every member of the Benchmark International family who works tirelessly to make sure we shine every day," said Steven Keane, Chairman.

Also weighing in is Dara Shareef, Managing Partner, who said, "This fantastic news is a true testament to the vision, talent, and commitment of everyone at Benchmark International who always goes above and beyond to look out for the best interests of our clients."

Clinton Johnston, Managing Director, also expressed his pride in a statement: "We are delighted with this recognition that demonstrates how highly regarded we are in the M&A space. Our team's hard work and impressive accomplishments deserve to be celebrated."

The M&A Advisor was founded in 1998 with a focus on mergers and acquisitions, and today is the leading organization that recognizes excellence and achievement among the world's leading dealmakers.

Benchmark International is delighted to announce the acquisition of Basingstoke-based Elkay Laboratory Products to Los Angeles-based Calibre Scientific.

Elkay Laboratory Products is a premier distributor of products including liquid handling, specimen collection, storage, biobanking, test tubes, caps and vials, filtration and centrifugation, multi-well plates, and calibration services to a range of domestic and international institutions and organisations. The company’s diversified customer base spans a variety of end markets including clinical, academic, industrial and environmental applications.

Calibre Scientific is a diversified global provider of life science reagents, tools, instruments, and other consumables to the lab research, diagnostics, industrial, and biopharmaceutical communities. Calibre Scientific owns a portfolio of twenty-one life science and diagnostic companies with its global reach extending to over 175 countries. Headquartered in Los Angeles, California, the company continues to expand its product offering and global footprint to laboratories across a wide array of verticals and geographies.

With this acquisition, Calibre Scientific further enhances its overall product offering in the laboratory supplies market and adds a scalable distribution operation to the portfolio.

Benchmark International was awarded Company Sales Specialists of the Year in the National Finance & Banking Awards by the Global Advisory Experts.

UpSlide has named Benchmark International among the 50 Most Powerful M&A Firms in the World.

Benchmark International was given the Acquisition Excellence Award by the esteemed publication Acquisition International.

Reps and warranties insurance is a policy secured for corporate transactions such as mergers and acquisitions. In recent years, the amount of this type of insurance sold has increased significantly. It covers the indemnification for certain breaches of the representations and warranties in transaction agreements, either partially or in full. Reps and warranties insurance usually doesn’t cover losses for breaches of covenants (other than pre-closing tax indemnification) or purchase price adjustments. 

Benchmark International is delighted to announce the sale of Doncaster-based Swedex UK to York-based Abracs Ltd.

Established in 2003, Swedex UK is a distributor of carbide tipped circular saw blades, sold to other distributors and sawmills throughout the UK. It has an exclusive supplier agreement with Swedex AB, which was founded in 1983 in Mjölby, Sweden, and is a manufacturer of circular saw blades.

Established in 1989, Abracs Ltd are one of the UK’s leading brands of abrasives and power tool accessories. The company holds the UK’s most extensive cross section of PTA products which enables it to cater for virtually all industrial markets. The acquisition of Swedex UK and its exclusive access to Swedex AB’s products will be an excellent addition to complement Abracs' existing product portfolio.

Speaking about working with Benchmark International, ex-Shareholder and Finance Director at Swedex UK, Carol Neal, commented: “Regarding the sale of our company, Benchmark were fantastic! Andrew helped us through the process, advised and assisted us through the maze of legislation and was on hand with any queries we had. Selling our company was never going to be easy, but I dread to think how much more difficult it would have been without Benchmark at our side. Benchmark kept us informed of all potential buyers and the best one with a good offer was found within a short period of time. From the first contact, through advertising and then on to completion everything went smoothly. I would definitely recommend Benchmark to assist you in the sale of your business or company.”

Deal fatigue is a condition that can arise during negotiations where involved parties begin to feel exhausted, discouraged, and frustrated in their attempt to reach an agreement. The negotiation process can sometimes be lengthy and demanding and requires players to spend valuable resources such as time, money, and energy. The inability to compromise in such negotiations not only depletes these resources but also can ultimately lead to a potential deal falling apart. Deal fatigue is a common obstacle in the world of mergers and acquisitions, one that both buyers and sellers alike have faced. From this, however, dealmakers around the globe have observed a few preventive measures that can be taken to ensure a successful transaction.

Benchmark International is delighted to exclusively reveal the location of its new European office and introduce Managing Director, Martin Franz.

Benchmark International is pleased to announce the transaction between Hemel-Hempstead-based H4 Aerospace (UK) (H4A) and Shannon-based Eirtech Aviation Services (Eirtech).

H4A is a UK CAA DOA, enabling it to undertake the engineering design and certification of modifications to commercial aircrafts, which range from main cabin reconfigurations with new seats and monuments, to cockpit avionic system upgrades. With its head office and main design office based in Hemel Hempstead, the company is within easy reach of all the main airports in and around the M25 area.

Since 2009, Eirtech has been providing a range of cost-effective professional aviation services and bespoke solution packages to airlines and airline leasing companies such as tailor-made engineering services, advanced composite repair services, and asset management solutions, ensuring regulatory compliance. Headquartered in Shannon, Ireland, the company also has engineering facilities in Dublin, Belfast, Great Britain, and Singapore.

The acquisition of H4A is in line with the continued global expansion plans of Eirtech and brings to the company both CAA P21 J approval and EASA P 21 J approval capability under one roof.

Benchmark International is pleased to announce the transaction between Nortech Solutions Group (Nortech) and Nijhuis Saur Industries (NSI).

Nortech is a multidiscipline engineering, design, and project management organisation, operating across multiple sectors including upstream and downstream oil & gas, petrochemical, chemical, energy, nuclear, water, and iron & steel.

NSI delivers solid and adaptive solutions for sustainable water use, energy, and resource recovery. With its headquarters in the Netherlands, NSI operates in 130 countries globally, employing over 350 specialists in Dubai, Canada, Colombia, Chile, Germany, Poland, Russia & CIS, Saudi Arabia, Singapore, the Netherlands, the UK, and the USA.

The deal will enable NSI to expand its engineering capabilities in the UK, Europe and the rest of the world, paving the way for further investment and growth.

Menno M. Holterman, President and CEO of NSI, commented: "Nortech adds a wealth of engineering and industry knowledge to the NSI group, which will support the group’s mission to ‘Stand For Water’. Nortech also has a specialist staffing recruitment division, which will help NSI to scale up its global workforce quickly to execute major projects like some of the recently won mega projects in the biofuel and refinery upgrading market in Europe and the Middle East.

Benchmark International is delighted to announce the transaction between East Kilbride-based Sixth Sense and Watford-based MCG.

Established in 2009, Sixth Sense is a national training provider of IT and digital apprenticeships, providing SVQ accredited courses to 140 learners through a direct contract with Skills Development Scotland.

MCG is a recruitment, consultancy and project-based solutions company within aerospace & aviation, construction, education, healthcare, and technology. The company works with, supplies and employs people both in the UK and internationally.

The acquisition is the third by MCG in 12 months, as part of a five-year growth strategy.

Grant Henderson, COO of MCG, said: “The acquisition of Sixth Sense fulfils both a business and personal ambition in increasing our training capability for our internal staff, as well as externally to our valued customers.”

The seller, Warnock Tanner & Associates, has been operating a successful IT services/management company for over 25 years.  WTA Consulting’s customers range in size from small local businesses to Fortune 500 businesses.  WTA specialized in Complete Consulting, Development & Implementation Services for Oracle Primavera.

Benchmark International was awarded Corporate Strategy of the Year in the M&A Advisor’s M&A Awards for our proprietary Fingerprint process.

The U.S. Senate recently passed the $1.2 trillion bipartisan infrastructure bill, titled the Infrastructure Investment and Jobs Act (IIJA), to improve the country’s roads, bridges, and utilities. The bill does face an uncertain future in the House of Representatives, where its support is more limited. Still, the Democratic Party could use the reconciliation process to get the bill passed into law. 

The bill includes:

• $73 billion for electric grid and power infrastructure
• $66 billion for passenger and freight rail
• $65 billion for broadband investments
• $55 billion for water systems and infrastructure
• $50 billion for Western water storage 
• $39 billion for public transit 
• $25 billion for airports
• $21 billion for environmental remediation projects 
• $17 billion for ports and waterways
• $15 billion for electric vehicles
• $11 billion for road safety

So, what might this all mean for M&A? 

Benchmark International is pleased to announce that Associate Director, Jack Redwood, has been shortlisted by the Thames Valley Deal Awards in the category of Young Dealmaker of the Year.

The leading event in the region’s corporate finance calendar, the awards bring together corporate finance advisers, lawyers, bankers, private equity investors, accountants, and funding specialists.

The Young Dealmaker of the Year award will be presented to the person who has had the most significant impact on completion of deals within the region and, over the qualifying period, Jack led and completed a list of impressive list of deals. Deals included the sale of Suttons Seeds to BVG Group-owned Thompson & Morgan, the transaction between RivaNet to NPIF-backed Intec Business Solutions, and the sale of Adelante Software to Aquiline Capital Partners-backed ClearCourse Partnership.

Benchmark International is delighted to announce the transaction between Cambridgeshire-based KeCo and Brussels-based Sabert Europe.

KeCo is a fast-growing UK manufacturer and provider of sustainable foodservice packaging made from paperboard and bagasse. The company has its own trademarked StrEAT® range, as well as owning Karrott, a unique AR app offering customers the opportunity to integrate digital and active marketing within packaging.

A subsidiary of US-based Sabert Corporation, Sabert Europe offers high-quality and sustainable solutions for delivery, takeaway and catering. The acquisition enables Sabert to enter the UK market and increase renewable material manufacturing.

Every business owner should be keeping up with the top sales trends being used to boost companies’ bottom lines in today’s tech-driven economy. So what does the future hold? Use these sales trends insights to make sure you’re doing every last thing you can to take your business to the next level.

Social Selling
Over the last decade, selling has evolved immensely. More than 90% of consumers do online research before buying something these days. And that’s why social selling is becoming so integral to the sales process. Social media connects you with consumers already interested in what you do, so you already have the upper hand by simply having them as an audience. You are also able to build better relationships with them, which will translate to higher customer retention rates.

And don’t forget about the power of referrals. 70% of companies have reported that referrals convert faster than any other type of lead. If your consumers are happy with what you are doing, they will be more likely to recommend you to their friends and family—something that social media makes it easy to do in just a click or two.

Social selling also comes with a few other added benefits. It increases your brand visibility by actively engaging with people online, and it also keeps your brand top of mind. This means you get higher-quality leads. And with high-quality leads, you can expect to see higher sales numbers.

Value-Based Selling
Customers are savvier than ever. They can see through gimmicks. Simply shoving deals in their faces doesn’t work so well anymore, especially in the B2B sector. This is where value-based selling comes in.

Data shows that 87% of high-growth companies use the value-based approach, and with good reason. By focusing more effort on showing customers the direct benefits or personal value they can enjoy from using their products or services, you’re more likely to close more deals.

Artificial Intelligence (AI)
AI adoption for sales teams is projected to be at 139% for the next three years. This is because business leaders are realizing how it can make a massive impact on sales numbers by helping with processes and tasks. Did you know that AI is capable of performing 40% of sales tasks?

AI can help you gather valuable data on customers that you can use to craft marketing strategies to increase your sales. It can also provide value by offering suggestions to customers based on their recent transactions. But that’s not all. AI can also predict trends in your sector to help you stay ahead of the game, boost productivity by automating menial tasks, identify leads with a higher chance of conversion, and improve customer satisfaction.

Personalized Customer Experience
When you give your customers a more personalized experience, they are more likely to do business with you. Research shows that nearly half of all buyers will make an impulse purchase after getting a personalized shopping experience. Because most customers appreciate a level of personalization, they are willing to give you their personal information or create online profiles. And this is really half the battle when it comes to building a solid customer base. Additionally, when customers feel more engaged on your website or app, they are more likely to do business with you. As long as you can offer them convenience, speed, helpfulness, and friendly service, getting personal can take you a long way.

Outsource Sales
80% of logistics leaders have reported that the matter of outsourcing is no longer a yes or no question—it’s just a question of how much needs to be outsourced. The global outsourcing market is projected to grow to $82.2 billion by 2022.

By outsourcing, you will have a dedicated sales team that is laser-focused on identifying leads, reaches different segments through different platforms, and converts potential customers. Meanwhile, your company saves money and gets the sales expertise needed for the job while you focus more on your business. Outsourcing can also help small businesses with scalability issues. If your company experiences rapid growth, an outsourced sales team is ready to handle it.

Customer Relationship Marketing (CRM)
91% of companies in North America have a functional CRM solution integrated into their system. And guess what else? 65% of sales reps using mobile CRM have a higher chance of meeting their quotas. CRM makes it easy for reps to see all the data they need in a centralized system. Because it also stores customer data, CRM can suggest products depending on their past purchases. It can also improve your relationships with your customers by giving you a complete understanding of their needs and preferences.

Omnichannel Sales
Selling today is all about unifying your sales channels and creating a single commerce experience. This gives customers the freedom to choose how they want to buy your product while expecting the same level of service no matter which they choose. 73% of shoppers look at different channels when searching for a product, such as websites, social media, and physical stores. By being visible across channels, your company has a better chance of being chosen by a customer. Omnichannel sales also make the buying experience more convenient. In fact, businesses using omnichannel sales retain 89% of their customers. Yet, 55% of companies do not have an omnichannel strategy in place. It’s simple. Get ahead of the competition by nailing down your omnichannel sales structure.

Target Millennials
Millennials live through technology. In the U.S. alone, 82.2 million Millennials use the Internet, spending about $600 billion every year. They are the most likely customer segment to try new technological features that you offer. And 68% of Millennials prefer a more integrated shopping experience. This is why having that omnichannel sales strategy is so important. Offer them a seamless shopping experience that focuses on technology.

Don’t Forget Generation Z
Generation Z now makes up 32% of the global population, and they have a collective $45 billion in spending power. They represent a huge chunk of the consumer population, and they are spending more and more. Gen Z-ers are digitally entrenched, with an affinity for content from sites like YouTube and Instagram. You should use these preferences to your advantage. And the best part of securing their brand loyalty is that they are poised to be customers for the coming decades because they have just recently come of age. That’s a massive sales opportunity you don’t want to overlook.

Benchmark International was named Leading Mergers & Acquisitions Advisor of the Year by Acquisition International’s ACQ Awards.

Benchmark International is pleased to announce the acquisition of Sheffield-based Systems Assurance by Warrington-based CloudCoCo.

Systems Assurance is a Microsoft Gold B2B reseller of IT hardware, software, and solutions, working with SME and public sector clients through its portfolio of cloud subscriptions and migration services. In the year ending 31 December 2020 the company generated revenue of £6.09m and an adjusted EBITDA of £209k.

CloudCoco is an AIM-listed provider of IT and communications services to businesses and public sector organisations. The acquisition of Systems Assurance marks part of CloudCoco’s buy and build strategy.

Chris Wheater, director at Systems Assurance, said this about working with Benchmark International: “There are many companies out there offering to find a buyer and help sell your company. So it's a big step to finally pick one, sign up and pay your money. I’m happy to report that Benchmark provided a great service and did what they said they would. We recently completed our sale and I would have no hesitation in recommending them. James Robinson and Roger Forshaw were supportive every step of the way and their experience and calm heads are just what is needed especially in the latter stages. A great service all round.”

We love to hear positive feedback from our clients, and we often share past client experiences with other parties. We showcase how Benchmark went above and beyond for sellers to get a deal across the line, or how value was added to a specific transaction. However, if you are considering hiring an M&A firm to represent you in a sale, isn’t it just as important to hear how buyers perceive the firm?

Benchmark International prides itself on a strong reputation within the lower middle market. Our company’s reputation spans vendors, clients, prospective clients, and buyers. Our team recently attended a conference where we had the opportunity to mingle with some of the most active investors within the lower middle market. The feedback we received from the buyers was highly encouraging and continues to reinforce our position as the best M&A sell-side representative in the industry. 

So, what are buyers saying about Benchmark International?

• Benchmark International has the best deal flow within the market. This means that buyers recognize the quality opportunities that our firm represents. They also recognize us for having the most sectors and diversified listings in the space. When a buyer is looking for a unique opportunity or a quality business, they know to call Benchmark International.
• The Benchmark International team does a great job of following up. Our deal team always strives to close the loop on the buyer’s level of interest, gather market feedback, or push the buyer forward with the process. There is no other firm in the industry that provides clients with the deal expertise and team size that Benchmark International offers. This allows our team to pick up the phone and discuss your deal with a potential buyer. Buyers have often shared that, in other cases, once they receive a Confidential Information Memorandum, they rarely hear back from the sell-side representative. But our team chases buyers during every part of the process, including trying to get a decision on a buyer’s level of interest on a Teaser, trying to gather a buyer profile and Non-Disclosure Agreement, gathering feedback from the Confidential Information Memorandum, feedback after conference calls and meetings, and so on.
• The quality of the information in your Confidential Information Memorandum exceeds other firms. When our clients go through our Benchmark 360 process, our team puts on their buyer hats and asks the tough questions. We want to ensure that the business for sale is presented in the best light, that our team fully understands the offering, and that the seller has the opportunity to think through how their company is positioned for market. Putting on our buyer hats allows us to anticipate the questions and information a buyer will find important for their decision-making process.
• The Benchmark International team is always professional. We understand that emotions can sometimes get the best of people. It does not matter which side of the table you are on, when you want a deal to go forward and the deal has hit a hurdle, we know it can be frustrating. The good news is that our deal team has seen a lot of hurdles and usually has the tools and options to overcome any issues if all parties want to work through them. One thing the Benchmark International team prides itself on is always being professional, even during hard conversations. Oftentimes, we all want the same outcome—a successful deal completion—and Benchmark International needs to take the emotions out of the conversation and ensure that everyone keeps their eye on the ball in order to move the deal forward.

The lower middle market is a tough market. Our deal experts not only have the experience to hold the seller’s hand throughout the process, but also stand up to the largest buyers within the market. Our reputation provides our clients the opportunity to have their Teaser reviewed by buyers that many cannot get in front of, let alone have long-term relationships with that allows our phone calls to be answered. This is critically important because having an M&A firm with a strong buyer reputation will help a seller maximize results once they go to market.

Benchmark International facilitated the Transaction between North Country Family Practice, P.A., located in Southlake, a suburb of the Dallas-Fort Worth, Texas market, and an undisclosed buyer.

Endevis operates three divisions, including professional contract staffing, direct professional placement, and recruitment process outsourcing across the United States. The leadership team alone now has over 150 years of combined experience in the recruiting business. Endevis’ industry reputation, experienced leadership, and passion for helping clients made them a prime target for acquirers.

Job.com is becoming an industry force in the staffing space.  They are reinventing the way employers attract, hire, and retain the right teams. Job.com uses advanced data science to put people back in control of their own success and unifying the staffing supply chain so companies can reduce the time and cost to hire the appropriate candidates and uphold great retain rates.  By joining Job.com, endevis will grow rapidly, reaching more clients and candidates and continuing to revolutionize the recruitment industry. 

Transaction Director Matthew Kekelis commented regarding the deal completion, “I truly believe that there was no better match for endevis than Job.com.  Their professionalism and attention to detail throughout the acquisition process were outstanding.  We wish the best for all moving forward in this exciting new chapter.”

Benchmark International’s client X Caliber Container, LLC, a Texas-based steel shipping and cargo containers provider, has successfully sold to LongWater Opportunities in Dallas, Texas.

X Caliber Container provides steel storage containers for a large and well-diversified customer base on a national scale with various products that overlap into several varied markets within the steel container industry. X Caliber Container then provides custom fabrication at both of its Texas-based facilities, including Firework Stands, Workshops, Mobile Chemical Labs, and Emergency Response units.

X Caliber Container co-owner Brent Isom commented, “I have been extremely pleased with each phase of the process, and the people are what has made it a great experience. The Benchmark [International] Team are at the tip of the top of the best companies that ever existed.”

LongWater Opportunities is an operationally-focused private investment firm headquartered in Dallas, Texas, with an office in Fargo, ND, that targets control buyout equity investments in lower middle market US-based manufacturing and specialty distribution companies. LongWater Opportunities believes in mutually aligned interests and investing patient capital in building successful American manufacturing businesses with long-term, sustainable competitive advantages.

Benchmark International proved value in finding a buyer with experience in the industry through its proprietary multi-medium marketing strategies. The market uncovered several interested buyers, but the ultimate buyer provided the right cultural fit for the sellers.

Transaction Director Amy Alonso commented, “We are thrilled to see that our client’s legacy and vision will remain and grow through this transaction. We understood that our client sought an acquirer who would take the company to the next level while also providing a great work environment for their employees. On behalf of Benchmark International, we wish both companies all the best in the future.”

Our Benchmark International team is proud to have released our latest exclusive publication of The Mark, Vol. XX.

This new version titled “RANKED #1,” features a slew of helpful information to enlighten you as a business owner, answer important questions you might have, and apprise you of the latest and greatest updates in M&A and the busy Benchmark world.

In this volume, some of the insightful topics you will find covered include:

• The Current State of Commercial Real Estate
• Can It Be “Too Early” to Put My Business on the Market?
• Be Wary of EBITDAC
• Why Lower Middle Market Companies are Attractive to Buyers
• Should I Sell to an SBIC?
• The Myth Behind Multiples
• Understanding Financial Due Diligence to Prepare for a Successful Close
• What is an Employee Ownership Trust?
• The Critical Focus of Cybersecurity in M&A Deals
  
  

And there’s a reason the volume is titled, “RANKED #1.” It highlights our prestigious recognition by Pitchbook as 2020’s #1 Sell-Side Exclusive, Privately-Owned M&A Advisors in the world, as well as the remarkable award-winning accomplishments of our team leadership.

This is just some of the unique content you can enjoy in this new edition. You will also find reports updating you on Benchmark’s European expansion and new headquarters, our latest featured opportunities, and some of our completed transactions.

We hope you will find it helpful and continue coming back for more.

Decentralized finance, also known as DeFi, makes financial products available to anyone on a decentralized blockchain network. Through this relatively new software system, all parties can interact directly through applications, eliminating a need for middlemen such as banks or institutions to facilitate transactions. It also eliminates a need for proof of identification or age requirements that banks typically require. There is no need for anyone to know anyone else’s identity. Everything occurs over a public blockchain, using smart contracts, which are bits of code that execute specified actions once certain criteria have been met. It’s based on mutual trust and strict privacy.

Now that you have found the perfect business for you to acquire, the question is, how do you finance the transaction? Most buyers will use a mix of debt and equity, but if you are a first-time acquirer, you may need help on where to go for the debt piece of the equation.

If you have never acquired another business before, the process of securing a loan for the acquisition might be challenging. Here are some things to consider when looking at your debt options.

Upon your initial conversation with a banker, be prepared to discuss your intent regarding the acquisition and your plans for the business’s future. You should also be ready to discuss your background and its relation to the company you are buying. In addition, you will want to understand the bank’s commercial loan options and which might be best for your goals. For example, you might need a traditional commercial loan or an SBA loan, depending on the acquisition size and details. While there are alternative financing options available, they could be much more costly.

Most financial institutions will underwrite the business and the borrower. If you own a similar business, they might underwrite both businesses as if they are one. Be prepared with documentation regarding your credit history, tax returns for all related entities (potentially including your personal tax returns), collateral options, and industry experience. The financial institution might request a balance sheet, profit and loss statement, projections, etc., for the business you are considering purchasing.

Lenders will provide you with their initial terms. Be sure to compare interest rates, fees, and other terms closely. Some terms you may want to consider are prepayment penalties and covenants that might affect the business. If there is real estate involved in the purchase, you will want to ask questions about the bank’s need for appraisals and various phases for the property.

After considering your options, you will then need to apply for the loan. Each financial institution will have its specific application and underwriting process. Depending on the loan size and the bank, the loan request may need to go to a special loan committee that meets periodically. This could add time to the approval process. You might want to discuss debt options with a bank with which you have a current relationship, as they will know you best given your existing history. If you have already received a loan from the bank, it could make the transaction process easier, which will make for a much better experience for you and the seller of the business you are looking to acquire.

  Author
  Kendall Stafford
  Managing Partner
  Benchmark International

  T: +1 (512) 347 2000
  E: Stafford@benchmarkintl.com 

Benchmark International is pleased to announce the successful transaction between The Colography Group, Inc. and Halstatt Legacy Partners.

Benchmark International was named Best for Corporate Growth and Expansion in Corporate America by TheM&A Advisor’s M&A Awards.

The recent cyberattack on the Colonial Pipeline in the U.S. is a glaring reminder of the vulnerabilities that all industries face, as well as the costly repercussions that can be a result of such a situation. Colonial Pipeline Co. paid the hacker group $5 million to have the company released from the ransomware to restore service to the critical pipeline. This actually turned out to be a wasted $5 million. For that high price, the hackers provided the company with a decrypting tool to restore its disabled computer network. But this tool was too slow, and Colonial ended up using its own backups to restore the system.

Benchmark International is pleased to announce the transaction between our client, a prominent industrial services firm, and Crete Mechanical Group (“CMG”).

Crete Mechanical Group (“CMG”) is a multi-site owner, operator, and business partner to mechanical service businesses in the United States. CMG partners with entrepreneurs and owners of HVAC, electrical, plumbing, controls, and other mechanical services companies to help them grow revenue, increase profitability, and transition ownership.

Our client is a leading industrial services firm providing electrical, mechanical, automation, fabrication, rigging, and maintenance services to various industries. The company has established an outstanding reputation in providing superior customer service within its regional market.

Senior Transaction Associate Sunny Yang Garten at Benchmark International added, “It was a pleasure to represent our client, a leading industrial services firm, in this transaction with Crete Mechanical Group. Our client was seeking a partner that shared their vision and offered the right deal structure, and Crete Mechanical Group was aligned with our client’s growth strategy. On behalf of Benchmark International, we wish both companies continued success.”

The COVID-19 pandemic is critically affecting the world's economies when businesses were already adapting to volatility and uncertainty as a way of life. With the economic outlook and threats of all kinds continuing to test even the most influential organizations, companies face various challenges as they work to find growth and stay competitive. One of the most beneficial ways of growing an existing company is through mergers and acquisitions (M&A).

Few firms throughout the world reach the top without conducting at least a few M&A transactions. The most well-known firms employ professional teams whose only role is to seek out attractive potential acquisitions tells its own story. When implemented well, an active M&A strategy can be a highly productive process for any company. M&A always has and always will be a long-term game. We are now in an environment where more and more business owners feel comfortable taking some calculated risks and driving forward an M&A agenda to build the company's future.

Private equity (PE) expects to see record-level fundraising this year. Even amidst the ongoing COVID-19 pandemic, analysts predict that the PE industry will raise an anticipated—and unprecedented—$330 billion in total capital in 2021. According to a survey performed by Ernst & Young, 49% of global companies plan to acquire in the next 12 months actively, and the majority are looking for assets internationally rather than domestically. A healthy fundraising and active acquisition environment coupled with the existing $1 trillion in disposable capital means excellent news for those looking to grow their business. Interest rates are low, equity markets are high, and investors demand, value, and reward growth. With numerous potential international acquirers with strong balance sheets and strong liquidity, our advice to companies is to look for logical strategic targets, be proactive, and focus on long-term value creation.

The U.S. and the U.K. remain primary centers of global M&A. The U.S. consistently holds the top spot for both domestic and for international M&A. The U.K. regularly ranks in the top three. If you are thinking of growing your business internationally, it is worth noting that M&A is regulated in all countries worldwide and has many advantages. Below are four key benefits of merging with or acquiring another company internationally.

Benchmark International is incredibly proud to be the main Jersey sponsor for Montverde Academy. Benchmark International aligns itself with partners that have the best-in-class programs. Montverde International Academy is a coeducational, independent school that serves grades Pre-K3-12. The academy strives to increase knowledge and to develop character through a nurturing and diverse community. In addition, Montverde International Academy is home to an athletic training Mecca, developing the world's best athletes. Their state-in-the-art facilities include an athletic complex that spreads over 33 acres, an Olympic-sized aquatic center, a 44 square foot indoor athletic center, a world-class equestrian center, and many more. The Montverde International Futbol club (MIFC) finished their season with a number 1 ranking and was crowned the 2019-2020 National Champions!

The Athletic Department believes that through athletic opportunity, they have the unique ability to build a solid foundation of young adults based on character, knowledge, and community. With similar beliefs as one another, Benchmark International is excited to help support the Montverde International Academy.

You can learn more about Montverde International Academy and their athletics here - Montverde Academy Athletics 

Benchmark International’s client Yuni Beauty, LLC, a California-based all-natural wellness and beauty brand, has strategically partnered with Rechemtex, LLC in Dallas, Texas.

Yuni Beauty offers clean, natural beauty products for the body, skin and hair, and aromatherapy items. All products are created with non-toxic, vegan, quality ingredients and sustainable packaging. The company’s target market is busy, urban, active individuals that prioritize clean beauty, wellness, health, and stress relief.

Rechemtex is a Texas Domestic Limited-Liability Company.

Benchmark International proved value in finding a strategic partner for Yuni Beauty with experience in the industry through its proprietary multi-medium marketing strategies. In addition, Benchmark International incorporated several campaigns with local, regional, and national associations.

Transaction Director Amy Alonso commented, “We are thrilled that our client can step away from the business knowing that his legacy will be carried on and the company will continue to grow. It was a pleasure to represent Yuni Beauty in this partnership, and on behalf of Benchmark International, we wish both parties all the best in the future.”

Benchmark International is delighted to announce the majority sale of Irish fire-protection systems company, Writech, to Waterland.

Established in 1981 by Thomas and Mary Wright, Writech provides fire protection system design, installation, manufacture, commissioning, and services across a range of sectors including logistics, data centres, life sciences, office, retail, and food & beverage.

Sons Ted and Alan Wright took over the business in 2008, now generating more than €20m in revenue. Writech will use Waterland’s investment to expedite expansion plans in Europe and the UK, as well as increase output at its Mullingar centre, creating over 30 jobs.


Waterland is a Dutch-based private equity house, headed by Laura Dillon in Ireland. The investment group has €8bn in assets under management across Belgium, the Netherlands, the UK, Germany, France, Denmark, Poland, and Switzerland.