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Benchmark International Has Successfully Facilitated The Transaction Between A&B Concrete Coring Company Inc. And A-Core, Concrete Specialists

Benchmark International is pleased to announce the successful sale of A&B Concrete Coring Company (“A&B”) to A-Core Concrete Specialists (“A-Core”).  

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2024 Global Architecture, Engineering & Construction (AEC) Industry Report

The Global Architecture, Engineering & Construction (AEC) market was valued at $10.05 billion in 2023, with a forecasted compound annual growth rate of 10.3% to reach $24.36 billion by 2032.

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Benchmark International Successfully Facilitated The Transaction Between Kevco Builders, Inc. And A High-Net-Worth Individual

Benchmark International is pleased to announce the acquisition of Kevco Builders, Inc. And A High-Net-Worth Individual.

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Benchmark International Successfully Facilitated The Management Buyout Of United Wholesale Supply, Inc.

Benchmark International, a leading global M&A advisor to the middle market, proudly announces the successful management buyout of United Wholesale Supply, Inc., a prominent provider of cabinets and appliances in the Puget Sound region. This strategic transaction marks a new chapter in United Wholesale’s legacy, ensuring its continued growth and innovation under the stewardship of its dedicated leadership team.

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Benchmark International Facilitated The Transaction Between CFA, Inc. And Bowman Consulting Group Ltd.

Benchmark International is pleased to announce the transaction between CFA, Inc. and Bowman Consulting Group Ltd.

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Benchmark International Successfully Facilitated The Transaction Between Steck Manufacturing Company And Milton Industries

Benchmark International is pleased to announce the transaction between Steck Manufacturing and Milton Industries.

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Benchmark International Successfully Facilitated A Transaction Between CCDI, Inc. And Black Powder Holdings

Benchmark International has successfully facilitated a transaction between CCDI, Inc. (Cocoa Beach, Florida) and Black Powder Holdings DBA Black Powder Partners (North Carolina).

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2023 Electrical Contracting Industry Report

Electrical contractors are a vital component of the construction industry and support broader economies. These businesses employ many workers and generate billions of dollars annually by providing essential services that power societal infrastructure, including

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Benchmark International Successfully Facilitated The Transaction Between Appellation Construction Services And Whiteley Infrastructure Group

Benchmark International Facilitated the Transaction between Appellation Construction Services and Whiteley Infrastructure Group.

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Benchmark International Facilitated The Transaction Of ProCon LLC And Southwest Material Handling Inc.

Benchmark International successfully facilitated the sale of ProCon LLC, hereinafter referred to as ProCon, to Southwest Material Handling Inc. ProCon, headquartered in Las Cruces, New Mexico, is an award-winning exclusive dealer of JCB construction equipment and a provider of value-added service and parts. ProCon operates in the western region of the US, including Colorado, Arizona, New Mexico, Texas, and Nevada.

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Benchmark International Successfully Facilitated the Transaction Between K.L. Durham Construction, DBA Performance Equipment Service and Mid-State Restoration, Inc.

Benchmark International’s K.L. Durham Construction, dba Performance Equipment Service, a San Antonio, Texas-based company that is a leader in the provision of soil stabilization and milling support services to contractors with projects in Texas, has successfully sold to Mid-State Restoration headquartered in Lakeville, Minnesota.

Ready to explore your exit and growth options?

Performance Equipment Service serves contractors across the state of Texas, specializing in highways and city and county roads and projects for airport runways, automotive tire test tracks, and private work. The company has well over a decade of business under its belt and has emerged as the go-to contractor for milling and soil stabilization.

Midstate Companies has consistently evolved and expanded to become the industry leader in cutting-edge pavement recycling. The company provides quality transportation and pavement recycling services to its customers through environmentally safe practices. Midstate has always used cutting-edge technology/equipment coupled with industry-leading personnel to make their specialized services look easy.

Benchmark International proved value in finding a buyer 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 understood that our client was seeking an acquirer that would provide a succession plan for the company and take care of the employees. We are excited to see that our client’s business will carry on and prosper as a result of this transaction. On behalf of Benchmark International, we wish both companies continued success.”

 

Schedule A Call

 

Americas: Sam Smoot at +1 (813) 898 2350 /Smoot@BenchmarkIntl.com

Europe: Michael Lawrie at +44 (0) 161 359 4400 Enquiries@BenchmarkIntl.com

Africa: Anthony McCardle at +27 21 300 2055 / McCardle@BenchmarkIntl.com 

 

ABOUT BENCHMARK INTERNATIONAL

Benchmark International’s global offices provide business owners in the middle market and lower middle market with creative, value-maximizing solutions for growing and exiting their businesses. To date, Benchmark International has handled engagements in excess of $8.25B across various industries worldwide. With decades of global M&A experience, Benchmark International’s deal teams, working from 14 offices across the world, have assisted thousands of owners with achieving their personal objectives and ensuring the continued growth of their businesses.

Website: http://www.benchmarkintl.com
Blog: http://blog.benchmarkcorporate.com

 

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Benchmark International Successfully Facilitated the Transaction Between Design Environments and Boston Trade Interior Solutions

Benchmark International is pleased to announce the transaction between Marietta, Georgia-based Design Environments, and Boston Trade Interior Solutions, with offices in Boston, Chicago, and San Francisco.

Design Environments is a nationally renowned interior design firm specializing in the interior architecture and merchandising of model homes, clubhouses, and amenity/sales facilities throughout the United States. The company was founded in 1991 by CEO Donna DeLuca, who has grown the firm into a national leader in delivering high-quality design services.

Regarding the transaction, Ms. DeLuca stated, “The whole Design Environments team is very excited about the opportunities this combination presents. We strongly believe that Boston Trade will make a great partner in our continued growth and expansion.”

 

Ready to explore your exit and growth options?

 

Acquirer Boston Trade is a national leader in renovation, conversion, and new-build projects for the hotel and hospitality industry. The company’s focus on design-forward interior environments that exceed their clients’ economic, aesthetic, and functional requirements aligns perfectly with Design Environments’ long track record of service excellence to similar client sets.

The acquisition is backed by Blackford Capital of Grand Rapids, Michigan, a leading private equity firm in the lower middle market with over $650 million in transaction value and 35 acquisitions at the time of the Design Environments acquisition.

Boston Trade CEO Greg Kadens remarked, “We are thrilled to add such a prestigious and well-respected company to our portfolio. Design Environments is so well run that we can immediately focus on the opportunities created by combining it with our hotel interior design and procurement business. Donna’s leadership throughout the years has brought the company to this point, and we look forward to continuing to work with her as we strive to provide industry-leading services and solutions to our clients.”

This transaction reflects the power of Benchmark’s International’s proprietary “Fingerprint” process, which focuses on each client's unique value proposition when going to market. Regarding the Design Environments transaction, Benchmark International Transaction Director William Sullivan stated, “Our client’s goals and values were highly aligned with the buyer we sourced for them. From the leadership tier of the acquiring firm to the fund partners backing the deal, a shared vision was clear from the start. We are very proud of the role that Benchmark International played in the process.”

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Benchmark International Successfully Facilitated the Transaction Between Vita Play Limited and Beds Construction Services Ltd

Benchmark International is pleased to announce the transaction between Winchester-based Vita Play and Bedfordshire-based Beds Construction.

Established in 2009, Vita Play provides turnkey solutions for children’s outdoor play spaces and environments, including fencing and street furniture, as well as specialist safety surfacing. Undertaking all work in-house, the company provides a complete service from design through to installation and maintenance. Operating from purpose-built facilities, the company primarily serve local authorities, schools, and private domestic clients across Hampshire and the surrounding counties.

Do you have an exit or growth strategy in place?

Private equity backed Beds Construction is an established business in the construction sector. It seeks to pursue synergistic bolt-on opportunities with well-established companies that have a turnover between £1m and £15m, a strong balance sheet and a long operating history.

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Benchmark International Successfully Facilitated the Transaction Between Sunbelt Waterproofing & Restoration and Northaven Capital Partners

Benchmark International’s client Sunbelt Waterproofing & Restoration, a Dallas-based commercial waterproofing, building restoration, and roofing company, has successfully obtained growth capital from Northaven Capital Partners in Dallas, Texas allowing the management team to pursue their growth plan.

Sunbelt Waterproofing & Restoration provides complete waterproofing services for commercial and independent contractor clients throughout Texas and parts of Oklahoma. It also includes restoration and maintenance services for commercial buildings and new construction projects. With over five decades of experience in solving unique structural and waterproofing problems, Sunbelt has proven it can provide outstanding and affordable quality solutions.

Northaven Capital Partners is an operationally focused firm investing in lower middle market companies with strong potential for growth. They focus on collaborative partnerships with experienced, driven, and ethical management teams to build alignment and drive value. Their principals have deep experience as operators across various industries from early-stage to multi-billion-dollar enterprises. Northaven Capital has a long-term investment horizon to support meaningful, long-term growth.

 

Ready to explore your exit and growth options?

 

Benchmark International proved its value in finding a partner 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 excited to watch our client continue to grow their business with a new partner. Our client has obtained growth capital allowing the management team to grow and provide a great working environment for its employees. On behalf of Benchmark International, we are excited to see continued success for both companies now and in the future.”

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Benchmark International Completes the Sale of Restek-UK Limited to an EOT

Benchmark International is pleased to announce the sale of Ripley-based specialist maintenance company, Restek, to an Employee Ownership Trust, joining the growing number of employee-owned businesses across the UK, as it announced its 14 permanent team members would be taking a stake in the business.

Founded in 2013, Restek provides a range of services including concrete structural repairs, composite strengthening, ground remediation and geotechnical solutions through the use of innovative materials, specialist products and techniques.

With an increase in revenue of more than 500 per cent in the past five years, the business has quickly grown to be a market leader in ground engineering, having worked with numerous local authorities and blue-chip companies including Network Rail, Barclays and Highways England.

Tim Knight, managing director and founder of the business, had engaged Benchmark International to consider the future options for the company. Having considered and rejected a number of offers that were on the table from a range of parties, Benchmark International suggested an Employee Ownership Trust (EOT) to acquire 100 per cent of the shares on behalf of the company’s employees, which was seen as an attractive alternative to Mr Knight. Benchmark International worked with Napthens Solicitors to structure the transaction appropriately.

Ready to explore your exit and growth options?

Commenting on the transaction, Mr Knight said: “Since incorporating the business, I always had the intention of stepping away, and following consultation with Benchmark and Napthens, I decided that employee ownership was the best fit. Growing revenue every single year, Restek has now been involved with a catalogue of exciting, high-profile schemes, quickly cementing ourselves as a leaders in our field.

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Benchmark International Successfully Facilitated the Transaction Between Carolina Marine Structures, Inc. and United Infrastructure Holdings, Inc.

Benchmark International is pleased to announce the transaction between Carolina Marine Structures, Inc. (“CMS”) and United Infrastructure Holdings, Inc. (UIH).

CMS is a leading provider of commercial waterfront construction services. The company specializes in construction related to boat ramps, bridges, dredging, shoreline restoration, and wetland creation. CMS resides in Powells Point, North Carolina and is centrally located for its preferred service areas of coastal North Carolina and Virginia.

 

Ready to explore your exit and growth options?

 

UIH focuses on providing a wide array of infrastructure services across the United States, from marine construction to engineering services. With this transaction, they are positioned for continued expansion nationwide.

Senior Deal Associate Nick Woodyard at Benchmark International commented, “The entire team here is glad to have facilitated the successful transaction between Carolina Marine Structures and United Infrastructure Holdings. It was great getting to a conclusion where both parties were excited to begin the next phase of their new adventure. This deal represents a platform opportunity for UIH to build an enterprise of future growth in the industry. We wish the teams continued success.”

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Benchmark International Successfully Facilitated the Transaction Between Hagan Heating & Air Conditioning, LLC and NearU HVAC Services

Benchmark International has successfully facilitated the acquisition of Hagan Heating & Air Conditioning, LLC (Hagan) by an affiliate of NearU HVAC Services. Hagan is a leading recurring maintenance, installation, repair, and service company specializing in residential and commercial heating, cooling, air quality control, and dehumidifying services. Hagan was founded by Paul Hagan and has been in operation for over 30 years. In addition to traditional HVAC systems, Hagan also services boilers, gas furnaces, and heat pumps.

The decision to sell Hagan was made after careful consideration. According to Mr. Hagan, “The thought of selling our 33-year-old HVAC business to actually listing it was overwhelming. After much research it was certain that we would need help. We narrowed down brokers and chose Benchmark International. The personal and professional attention we received exceeded our expectations. All members of the team provided the knowledge and expertise needed to get us from listing to closing with confidence, despite this occurring during the COVID pandemic, March-September 2020.”

Regarding their choice of suiters, Mr. Hagan added, “At Hagan, we have worked hard and honestly to always do right by our customers and employees. We chose to transition our brand to NearU because of our confidence in NearU’s vision for the HVAC industry.”

Ready to explore your exit and growth options?

NearU is a technician and customer-centric provider of residential and light commercial HVAC services. Hagan marks the fourth HVAC business in the NearU portfolio. Ashish Achlerkar, NearU’s Founder, Chairman and CEO stated, “Our portfolio in upstate South Carolina now boasts two strong and strategically-combined local brands: Carolina Heating Services in Greenville and Hagan Heating and Air in Anderson. We welcome the customers and employees of Hagan to the rapidly growing NearU family.”

Regarding the transaction, Senior Associate Nick Woodyard at Benchmark International stated, “We are excited to see the Hagan team begin this next chapter in the company’s legacy. It was an absolute pleasure working with Paul and Les Hagan and we’re excited to have facilitated a successful transaction.”

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Benchmark International Successfully Facilitated the Transaction Between Hall Building Products, Inc. and Reddi Industries, Inc.

Benchmark International is pleased to announce the acquisition between Hall Building Products, Inc. and Reddi Industries, Inc.

Hall Building Products provides an array of building supplies to commercial and residential works, primarily servicing customers in Oklahoma and the northern Texas region.

Reddi Industries is a Wichita, Kansas based home and commercial services company that added Hall Building Products to its growing business portfolio and geographical reach.

Ready to explore your exit and growth options?

Zack Stevens, co-owner of Reddi Industries, Inc. stated “Oliver with Benchmark recently helped us with a multi-state business acquisition. Throughout the entire process, Oliver did a great job keeping the deal moving and communicating with us on updates. There are obstacles in every acquisition we have completed and this one was no exception. Oliver helped us work through those to the finish line. I’d highly recommend Oliver and Benchmark.”

Benchmark International Transaction Director Anthony Hernandez noted, “The Benchmark International team is delighted to have facilitated the sale of Hall Building Products, Inc. to Reddi Industries, Inc. Reddi Industries, a family-owned and operated professional home and commercial services company, proved to be the perfect buyer for Hall Building Products, Inc. The Benchmark International team did an excellent job bringing Reddi Industries to the table to execute a swift transaction with the seller.”

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Benchmark International Successfully Facilitated the Transaction Between Suntech Electrical Contractors, Inc. and Investors Stanoy Tassev & Rocco Reffie

Suntech Electrical Contractors, Inc. (Suntech), a Florida company that engaged Benchmark International to market and facilitate the transaction of the business with investors Stanoy Tassev and Rocco Reffie.

Suntech was founded in 2003 by Tom Czajkowski. Suntech is a full-service electrical contractor specializing in large commercial projects. The company provides hardwire electrical services and improves electrical efficiency for a wide variety of industries. Suntech also provides electrical code compliance services.

Regarding Benchmark International’s services, Mr. Czajkowski shared, “From the initial meeting with Benchmark [International] and through the entire process of preparing all the documentation, keeping me informed of progress, reviewing the letters of intent and the final closing, I was confident I was receiving excellent advice and guidance. Thank you to the Benchmark [International] team.”

Ready to explore your exit and growth options?

According to updated state filings, officers of the company are now Mr. Tassev as President and Treasurer, Mr. Czajkowski as Vice President, and Mr. Reffie as Secretary. With backgrounds in electric power and services, the Suntech investment provides Mr. Tassev and Mr. Reffie expansion in the electrical contracting space.

Nick Woodyard, Transaction Associate at Benchmark International was engaged throughout the transaction, from client on boarding all the way through to the successful closing. Nick commented, “The Suntech team was very focused. They moved quickly throughout the process, which led to a timely closing. We wish both parties all the best in their new partnership.”

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Benchmark International Facilitated the Transaction Between Catastrophe Cleaning & Restoration Co, Inc. and Interstate Restoration

Catastrophe Cleaning & Restoration Co, Inc. (“CATCO”) has been acquired by Interstate Restoration. CATCO is a 50-person company that has operated for over 35 years providing highly-skilled restoration and remediation expertise to residential, commercial, public, and industrial customers.

Former owner Michael Hammack will continue as President as he helps transition the firm.

Michael Hammack, President of CATCO commented, “Benchmark International and Robert West were very professional, knowledgeable, extraordinarily helpful, and extremely encouraging during the sales process.  Robert and his team ran a focused and competitive process resulting in a great cultural fit and financial outcome.  CATCO looks forward to many years of success under the ownership of FirstService | Interstate Restoration.”

Ready to explore your exit and growth options?

Interstate Restoration is an emergency response and general restoration contractor founded in 1998.  With more than 50 locations spread across the US and Canada, they have a proven record of providing rapid disaster response in every corner of North America. Interstate is a subsidiary of FirstService Corporation (NASDAQ: FSV), a Canadian public property services company generating over $2B in annual revenue.

Tyrus O'Neill, Managing Partner at Benchmark International stated, “This was one of the more rewarding client relationships I have had the opportunity to build over my time with Benchmark International.  Our team being intimately involved with Michael and his company through marketing, deal negotiation, and financial due diligence afforded us the opportunity to stitch together a deal that made tremendous sense for the client in both a cultural and financial context.  He was able to monetize the great business he has built while also handing the keys over to an organization in Interstate that will genuinely carry on the legacy of CATCO as it continues to grow its presence.” 

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2019 Outlook for the Construction Industry

The outlook for the global construction market for the year of 2019 remains positive, with an expected five-percent sector-wide growth in revenue. Robust economies, low interest rates, and increased infrastructure spending are key factors behind the increased confidence. The world’s fastest growing market is the Asia Pacific region, due to growing investments in China and India’s construction sectors. In North America and Europe, growth is being driven by new technologies in already strong construction markets. Also, a number of South American and Middle Eastern countries may see their markets recover in the coming year and have the potential for growth in the future.

M&A Momentum

Mergers and acquisitions for the construction industry are poised to follow the vigorous deal activity of 2018. Construction tech startups raised $1.27 billion in venture funding in the first three quarters of 2018 alone. Public companies were seeking growth. There was increased interest in individual sectors such as energy. Private equity firms were actively buying and selling. Another significant factor was a need for ownership changes due to a growing retirement-age population. These trends are predicted to continue throughout 2019.

Tech Startups

Construction technology startups are expected to continue to have a considerable impact this year. This industry segment has seen more than $10 billion in funding over the past 10 years, with most of the money coming from early-stage venture capital deals. As these tech companies evolve, bigger firms are making full acquisitions. One strategic reason behind these large acquisitions is for companies to procure more talent in a more efficient manner, which in turn is anticipated to drive business growth.

Smart Cities

Society is seeing a heightened focus on infrastructure upgrades and the creation of smart cities. In 2016, smart-city tech spending reached $80 billion globally. By 2021, spending is expected to grow to $135 billion. Smart cities use Internet sensors and other technologies to connect elements across a city to gather data and enhance the lives of its residents. Partnerships between private and public companies are helping governments incorporate new technologies in an increasingly urbanized world. The advent of smart cities was initially seen in Europe, and now the U.S. has begun to integrate technology into urban infrastructure.

Offsite Construction

The quickly growing modular construction market is projected to reach $157 billion by 2023. The capability to build taller modular buildings is reaching new heights, with some buildings stacking up to almost 20 stories. This offsite type of construction is addressing certain industry needs, such as the need for skilled labor, the need for affordable housing, and the need to complete projects more quickly.

Connected Construction

A rapidly emerging trend that many investors are watching closely is connected construction. Companies are incorporating technology into construction sites to save time and money. Bluetooth connectivity is driving the emergence of new worksite tools that can be tracked, monitored, and even deactivated. Mesh networks are enabling sites to be fully connected to wireless networks in order to streamline processes around obstacles in the way of man-hours, status updates, supply deliveries, blueprint consultations, and more.

These emerging technologies have prompted several recent acquisitions, just to name a few.

  • Autodesk Inc. purchased construction productivity software company PlanGrid for $875 million.
  • Autodesk also spent $275 million to buy BuildingConnected, a networking platform of more than 700,000 construction professionals.
  • Trimble bought construction software company Viewpoint from Bain Capital for $1.2 billion.   

Enlist Our Expertise

If you are interested in buying, selling, creating a growth strategy, or even devising an exit plan for your business, contact Benchmark International to get the expertise that is proven to make successful deals happen around the world every day.

 

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Benchmark International successfully facilitated the sale of Landtec Services, LLC., to RW Construction Services LLC DBA ERW Site Solutions (ERW)

Benchmark International has successfully facilitated the sale of Landtec Services, LLC., to RW Construction Services LLC DBA ERW Site Solutions (ERW).

Landtec Services, LLC., is an Austin, Texas-based business that provides commercial landscaping services to the Central Texas market. It provides a turn-key solution that includes the installation of landscape, irrigation, hardscape and retaining walls, and property maintenance.

ERW Site Solutions (ERW) specializes in building retaining walls and providing job site services such as fine grading, hardscapes, monuments, job site cleanup, and slope protection & erosion control. ERW offers unmatched quality of service at prices other subcontractors can rarely beat while utilizing state of the art equipment and technology.

 

Ready to explore your exit and growth options?

 

In reference to the transaction, Brandon Parish, Managing Member and Partner of Landtec Services LLC., explained his experience with Benchmark International, “I was recommended to Benchmark International by a fellow peer in the industry. He spoke highly of Benchmark’s team. My experience with Benchmark far surpassed any expectations. I truly felt like they understood what my goals were and they were relentless in their approach to get a deal done. Larry Quinn, Partner of Landtec Services, LLC., mentioned that “Benchmark International team knew from the beginning that we had unique goals; they carefully crafted a strategy that would allow Brandon and I to achieve them.”

Transaction Director, Luis Vinals, added, “Brandon and Larry were excellent to work with. Benchmark International’s Austin team enjoyed working with Brandon and Larry and found a deal that was ideal for them. This deal reflects Benchmark’s dynamic market position and negotiation prowess as both of our clients had naturally opposing goals. Brandon was looking for a transition and growth deal with a value added acquirer. On the other hand, Larry, wanted a shorter transition period for his eventual exit. The Austin team did a formidable job at negotiating a deal that would fit both of these objectives. From day one, our clients collaborated with us which paved the way for our proven model to forge a deal that would meet their needs.

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Benchmark International Facilitated the Transaction of T.J. Baehr, Inc., D.B.A. Ground Hog Foundation Drilling to a Private Investor

Benchmark International has successfully facilitated the sale of T.J. Baehr, Inc., D.B.A. Ground Hog Foundation Drilling, to a private investor in Houston, Texas.

Since 1989, Ground Hog Foundation Drilling has been a specialty contractor that delivers foundation drilling and excavation services for commercial and industrial construction projects in the Houston market. The buyer, Guillermo G. is a private investor living in Houston, Texas with years of experience as a project manger for the energy sector. The buyer’s strong relationship with the seller, engineering background, and interest in specialized services and project management were factors that motivated the buyer to purchase his first business, Ground Hog Foundation Drilling.

 

Ready to explore your exit and growth options?

 

In reference to the transaction, Tom Baehr, President of Ground Hog Foundation Drilling, explained his experience with Benchmark International, “I was previously engaged with another brokerage firm and later decided to engage Benchmark International for their extensive market reach and successful track record. I found that Benchmark International immediately understood the excavation drilling market and was able to introduce numerous buyers into the mix. Not only did the Benchmark International team bring forth and negotiate an offer that satisfied my expectations but also a buyer that I know will facilitate the continued growth of Ground Hog Foundation Drilling for many years to come. I highly recommend using Benchmark International for your M&A needs.”

Guillermo G., acquiror of Ground Hog Foundation Drilling, described his experience with Benchmark International, “ I enjoyed working with Benchmark International. I felt that they truly cared about the deal and their constant communication allowed us to work through negotiations and ultimately helped me achieve my objective of business ownership”.

William Van Buren, Senior Associate at Benchmark International’s Austin office added, “Benchmark International’s Austin team very much enjoyed working with our client Tom Baehr, President of Ground Hog Foundation Drilling. The team found Tom to be very collaborative throughout the entire sales process and we were thrilled that he found the right buyer that will continue the business’ trajectory for long-term success. The team truly showcased its knowledge in the marketing of asset heavy businesses such as Ground Hog Foundation Drilling to broad marketplace and facilitated the flow of communications across several parties. Having both a client and a buyer such as Tom and Guillermo that are open to collaborating and communicating paved the way for the deal to come to fruition even when faced with uncontrollable challenges such as inclement weather that caused projects to be delayed. Ultimately, the teams on both the seller and buyer side did an incredible job at facilitating a successful business transaction.”

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Top 10 Industries for Private Equity Investment Revealed

A study by Private Equity Info has identified the top 10 industries that private equity firms have been acquiring during 2018. Below is a breakdown of the industries along with why they have been so popular with private equity firms.

1. Manufacturing

Manufacturing features on the list, in part, as a result of advancements in manufacturing. With automation, processes are made more efficient in many different sectors such as technology, aerospace, automobile and medical devices, making manufacturing companies an attractive prospect for private equity firms as they can utilise the technology in their portfolio companies and it is a good investment.

Watermill Group is a prime example of a private equity firm acquiring manufacturing companies. It currently has three manufacturing companies in its portfolio and within the past year acquired Andaray (Holdings) Limited and its subsidiary Cooper & Turner.

Commenting on this, Steve Karol, Managing Partner at Watermill Group said, “We are bullish on manufacturing in North America. Advanced manufacturing is creating a lot of new opportunities in many different sectors for many different companies.”

 2. Software

Similar to manufacturing, the software industry is popular with private equity firms as it can be utilised within other sectors for their advancement.

Software can be utilised in all manner of sectors and is proving particularly popular in retail as it can detect changes in customer attitude. While a valuable asset to have, it is incredibly difficult for other sectors to replicate what the software can do, therefore lends itself as an add-on to other companies.

Proof of this is within European M&A. Within the last year, software M&A activity set a new record for the number of transactions conducted and one of the main drivers for this growth was private equity, with statistics from Mergermarket showing that there were $11.2 billion of private equity deals conducted out of the $24.7 billion overall total for 2017.

Interested in private equity investment?

 3. Technology

Once again, private equity is investing as technology is a useful asset to be used to improve portfolio companies.

What has been interesting over the past year is how private equity firms, themselves, have started to utilise technology for their own benefit, not just for the benefit of portfolio companies. For example, artificial intelligence systems are now being used to screen investment opportunities. This phenomenon is not expected to slow down either, as a survey by Coller Capital shows three quarters of investors believe their private equity programmes could be improved by the use of external data sources such as third party software and cloud applications to the digital marketplace.

 

 4. Healthcare

There is an interest in healthcare from private equity given the fact that this is a growth sector because of the ageing population and the fact that the system is fragmented and needs to be consolidated. Recent acquisitions in this industry include that of Envision Healthcare by KKR in June 2018.

It’s particularly good news for healthcare companies in the UK, as private equity firms have been increasingly active in this market, believing the sector will fare well throughout Brexit.

 

5. Data

Data, in a similar way to technology, has been popular with private equity firms because of both acquiring the assets for their portfolio companies and because data can be used within the transactions themselves.

The use of data and analytics in private equity is gaining momentum as it can be used to identify issues at a quicker rate and focus the due diligence process, enabling both the buyer and seller to close a deal faster. It is important that a deal can be closed quickly for private equity firms, as record amount of dry powder available means that there is a lot more competition in the market.

 

 6. Oil & Gas

As the oil & gas industry has strengthened in 2018 with a rise in commodity prices, costs and emerging technology the market is forecast to accelerate, with an expected global value of $2,627.4bn by the end of 2022, compared to $1,977.3bn in 2017.

This could make the industry an attractive prospect to private equity buyers although, that being said, oil & gas has always been a popular industry for private equity investment as it is a commodity that is always in demand, it produces a steady cash flow, there are high barriers to entry into the market, and it attracts strong profits.

 

7. Medical

While the medical industry has some crossover with healthcare, there is more of a focus on the area of medical devices, particularly within manufacturing and research. As innovative new drugs and devices are continually coming to market this is attractive for private equity. A recent acquisition in this sphere includes Mérieux Développement and Gimv’s acquisition of Stiplastics Healthcaring.

Feel like it's a good time to sell?

8. Construction/10. Engineering

While construction and engineering appeared in eighth and tenth places respectively, there has been an increased presence of private equity firms in the combined engineering and construction industry. While last year saw an increase in private equity exits, there was also an increase in acquisition activity.

One notable transaction in 2017 was that of Warburg Pincus’ acquisition of Service Logic. This acquisition is a key example of why private equity interest has increased as Service Logic is a HVAC and mechanical services provider, an area which private equity firms are eager to enter because of the recurring revenues available. There has been even more interest in recent years as the aftermarket is growing as a result of a need for it within the construction industry.

 

 9. Transportation & Logistics

Private equity in the transportation & logistics industry has emerged as a large player since the 2008 financial crisis as it worked at consolidating a fragmented market and financing expansion. In 2014, there was a shift to publicly trading companies acquiring transportation & logistics companies, and private equity took advantage of a buyers’ market and sold. By 2015, however, private equity was back to being the main contender as spending slowed down from publicly traded companies due to their stock prices falling, whereas private equity had the necessary resources.

One such company that specialises in transportation & logistics acquisitions is Greenbriar Equity Group, with the majority of its current portfolio dating back to 2015. Some of its recent acquisitions include The Whitcraft Group (April 2017) and LaserShip (March 2018).

 

WE ARE READY WHEN YOU ARE

Call Benchmark International today if you are interested in an exit or growth strategy or if you are interested in acquiring.

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Benchmark International has successfully facilitated the sale of Malone Finkle Eckhardt & Collins to RTM Engineering Consultants

Malone Finkle Eckhardt & Collins, Inc. is a leading mechanical, electrical, and plumbing engineering firm specializing in commercial construction. The company has extensive experience in several different industries and has completed numerous projects for national retailers and hospitality companies throughout the US. Located in Springfield, MO, and Overland Park, KS, the company is licensed to perform work in all forty-eight contiguous states. Over its thirty-five years in operation, Malone Finkle Eckhardt & Collins, Inc. has successfully completed hundreds of large-scale retail and hospitality projects.

Rod Finkle, President of Malone Finkle Eckhardt & Collins, Inc. commented, “We are excited about the acquisition and RTM’s future capabilities with the firm. Benchmark International’s transaction team provided a great buyer that fits perfectly with the culture of our company. Tyrus, and the team quickly sourced a motivated buyer which eventually turned into our exit strategy. We would like to extend a special thanks to the team that quickly brought us results in finding the right buyer.”

Tyrus O’Neill, Managing Director at Benchmark International, stated, “It was a pleasure to represent Rod and the firm in this transaction, and on behalf of Benchmark International, we are extremely pleased with the outcome. The acquirer and seller have numerous strategic synergies which has led to a great process and result. Overall, this has been a thoroughly satisfying experience and we wish both parties the best of luck moving forward.”

Established in 1981 and headquartered outside Chicago, RTM Engineering Consultants integrates MEP/FP and civil engineering services with sustainable design as a given. The firm goes beyond a typical consulting role and becomes a partner to clients by aligning with the goals, processes, and people at each organization. Licensed in all 50 states, its portfolio spans major market sectors nationwide. For more information,
visit www.rtmassociates.com.

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