Seller: Tri State Fire Protection, Inc.
Sold To: Fire Equipment, Inc.
Tri State Fire Protection, the premier choice for fire sprinkler design, fabrication and installation in Rhode Island, Connecticut and Southeastern Massachusetts, is renowned for its industry expertise working on historic buildings (Newport Mansions, for example), balancing the aesthetics of the property with the need for modern fire safety systems.
Beacon was introduced to stockholders by their regional CPA firm. After getting to know the business and an in-depth review of their financial data, Beacon provided management with an estimated value range in a sale. Management then engaged Beacon to search for a buyer after four weeks of discussions.
One owner (70s) wanted to retire after nearly 50 years in the industry. His partner (60s) of 30 years preferred to remain in the industry but not as an owner. He did not want to sell to a large corporation, preferring a private company as the best transition for himself and the loyal team of employees.
Beacon Equity Advisors assisted with the valuation, marketing, deal negotiations and due diligence coordination necessary to bring about a deal with a family owned fire protection business which saw an opportunity to expand geographically and increase their expertise in fire sprinkler installation.
Beacon confidentially introduced the business to hundreds of fire protection companies throughout New England and the Mid-Atlantic states offering a masked one-page teaser.
Beacon prepared an initial presentation deck highlighting the strengths, successes and synergies the Company brought to the table for buyers expressing interest and executing a non-disclosure agreement. The presentation provided big picture financial information and other key metrics to spur interest, downplay perceived risks while maintaining seller confidentiality. Beacon then worked closely with each interested buyer to answer their initial questions after reviewing the package.
Beacon encouraged each buyer to submit a timely indication of interest letter (IOI). The seller selected the three most attractive buyers for more detailed conversations over the subsequent two weeks.
The top two groups, a larger family owned company and an HVAC piping contractor looking to diversify, were invited to meet with management off-site and submit final bids.
Beacon negotiated a seller friendly letter of intent (LOI) for the purchase by fire protection company.
Beacon provided seller with an introduction to an experienced transaction attorney to assist with the preparation of the purchase agreement, consulting agreement, real estate lease and coordinate the closing.
Beacon worked with attorneys and CPAs from both sides to complete due diligence and close the transaction in less than sixty days from the LOI.
The transaction provided the sellers with substantial cash at closing, a small revenue based earn out, consulting agreements for both owners and an attractive lease on real estate owned by an affiliated entity.
Of equal importance to the sellers, all of the company’s employees were retained with seniority, even receiving enhanced benefits from the buyer.