Overview
Sunbelt Transformer Ltd (“Sunbelt” or the “Company”) is a leading provider of new and remanufactured electrical power and distribution equipment (transformers, switchgear, circuit breakers, etc.) and related repair and field services. Operating from nine locations across the United States, Sunbelt is recognized as the leading national brand in providing rapid, customized electrical equipment solutions for commercial and industrial power users.
Bigelow Assignment
To proactively seek out the best next majority owner for the Company that would satisfy the personal objectives of the existing majority shareholder, transition management leadership, and continue to invest in the Company’s successful market and product expansion plans.
Challenges
The majority Owner / CEO was ready to transition his role from the Company, and certain minority owner management team members were ready and willing to assume the leadership of the business. Could Bigelow find an investor that would support this transition?
Could Bigelow find the right investor who would help recruit a high caliber VP of Sales and that in turn, would help build a comprehensive sales & marketing strategy?
Could Bigelow find an investor that would support a highly entrepreneurial culture of young motivated employees, with ambitious desires to grow?
“My friends at Bigelow helped to unravel the mystery in my mind about the marketplace, valuation, where my heart and spirit were residing and how to place all the pieces together. They helped to craft, orchestrate, and execute a complicated opportunity into a future for myself and all the people at Sunbelt that mattered dearly. I could not have asked for a better group to work with and befriend!” James C. Landino, Former Owner / Chief Executive Officer Sunbelt Transformer Ltd
“Bigelow’s insights and perspective were tremendously valuable to our management team and to me personally. I couldn’t imagine a better partnership with an M&A advisor, as Bigelow was a true advocate for Sunbelt and all of our stakeholders.” Dan Sweeney, Chief Executive Officer Sunbelt Transformer Ltd
Outcome
Bigelow created a market for Sunbelt using its proprietary methodology that resulted in numerous strategic, financial, and private equity-backed platform investors expressing high interest in investing in the Company. A proactive investor evaluation process was initiated for the client, which included a road trip to visit different investors’ headquarters to meet and understand potential chemistry and cultural fit.
With multiple compelled investor candidates to choose from, the Company selected Grey Mountain Partners, a Boulder, Colorado-based private equity firm, who had partnered with several former executives of Eaton Cooper Power Systems, adding board-level governance to Sunbelt. The transaction was closed without any third-party debt financing in place at closing, allowing for higher surety of closing, reduced demands on the management team during due diligence, and an expedited closing process. The end result was a risk-free, market-clearing liquidity event for the exiting majority shareholder / CEO, and a new investor for Sunbelt that provides the Company with capital for growth, as well as the enthusiastic backing of the former COO becoming the new CEO at closing.