Practical Dermatology Magazine asked Bundy Group, an industry expert in the Healthcare and Physician Practice Services segments, to write an article on initiatives that physician owners can take to improve the value of their practices.
Water & Wastes Digest asked Bundy Group, an industry expert in both the Controls & Automation and Water & Wastewater segments, to write an article on the intersection of those markets and the corresponding increase in Mergers & Acquisitions activity.
The water and wastewater market continues to demonstrate and exhibit an increasing adoption of controls and automation solutions to address mission-critical needs. This market demand for technology and talent is creating a wave of investment and mergers and acquisitions activity, resulting in an evolving competitive landscape.
There are many examples of controls solutions that can be found in the water and wastewater market today. Furthermore, there are a range of cybersecurity systems constantly being developed and instituted to safeguard the control systems and other aspects of these networks. Technology-driven monitoring and security systems allow municipalities, private water management companies and other key players in the market to accomplish many goals.
This includes monitoring key systems within a water network, such as pump stations, elevated storage tanks, lift stations and floodgates; minimizing engineer and staff time devoted to commodity tasks, such as driving to a pump station to check its operating status; providing comprehensive cybersecurity measures, which allow a client to safeguard its network from external threats and meet regulatory obligations; and allowing a client to save money through energy management control systems.
“Automation is a key ingredient in driving efficiency and accuracy. SCADA can be a critical component in helping to drive a high-quality operation,” said John Freebody, chief financial officer for Inframark, a nationally focused water infrastructure operations company. “At Inframark, we are very keen to leverage these platforms wherever possible to complement our standard operating procedures to maintain a safe and secure environment for our most critical resource.”
The growing demand for controls, automation and cybersecurity measures also is creating a wave of investment and acquisitions in the water and wastewater space. Active entities seeking to acquire include both industry (i.e. strategic) buyers and financial investor (i.e. private equity) buyers. There are numerous reasons for the substantial increase in mergers and acquisitions activity for controls, automation and cybersecurity companies focused on the water & wastewater market.
Buyers usually are interested in investing in growth-oriented markets. The U.S. water and wastewater market—approximately $743.7 billion market in 2019—is anticipated to grow to $914.9 billion by 2023. Additionally, the global industrial automation market is expected to reach $352 billion in 2024 relative to a 2015 market size of $183 billion (i.e. a 6.6% compounded annual growth rate). Finally, cybersecurity markets globally are increasing at a 14.3% compounded annual growth rate from just over $3 billion in 2017 to approximately $4 billion in 2019, and it is projected to reach $6 billion in 2022.
Aging water infrastructure, increasing cybersecurity threats on water networks, and regulatory burdens placed on municipalities and private water management companies provide buyers with confidence in the long-term viability of controls and automation solutions for water and wastewater.
“The EPA has been driving mandatory water and wastewater upgrades in Ohio where I live. City engineers have been telling me about the search for control system integrators who are not only technology experts but who also can manage projects on time and on budget,” said Gary Mintchell, founder of The Manufacturing Connection, a controls-focused consulting company.
The fragmented nature of the controls and automation market for water and wastewater provides buyers with the opportunity to scale up by acquisition. Buyers can purchase other industry participants, which usually are smaller in size but plentiful in the market in terms of numbers, as add-on acquisitions to the buyer’s existing platform. There is a massive demand for technology and talent as it relates to controls and cybersecurity offerings, and companies that have developed proprietary technology systems and seasoned talent are especially valuable.
“Controls & automation needs are increasingly becoming more complex and customized. Very few providers have proficiency across the broad range of technology platforms and required services available in this market,” said Dave Thomas, President & CEO of SJE, a global manufacturing and services firm focused on the water space. “[It] has leveraged our recent acquisitions to add expertise and capabilities that would be nearly impossible to develop organically.”
With the continued growth of the water and wastewater market, and the industry’s adoption of controls and cybersecurity measures accelerating, the pace of mergers and acquisitions activity is anticipated to grow even further.
“The business strategy of water is changing from a focus on short term budget cycles and shifting to a more comprehensive approach that emphasizes life-cycle infrastructure costs, which in turn requires a more sophisticated approach to controls and automation, one that emphasizes data collection, analysis and management to assist with capital planning decisions,” said Mason Miller, CEO and investor for Dorsett Technologies, a controls and automation technology firm for the water and wastewater market. “As a result, the fragmented SCADA control market will increasingly be consolidated by value-added infrastructure companies like ourselves, who can pair the technology solutions with the capital and analytical capability to provide turn-key solutions to municipal, state and federal customers.”
Whether a company is a control system integration firm, an IoT sensor manufacturer, a controls and automation software-as-a-services company or a cybersecurity technology organization, the increasing presence of strategic and private equity buyers will have profound ramifications on the value of those potential acquisition and investment opportunities.
This article originally appeared in the October 2019 issue of Water & Wastes Digest as "Automation Takeover." Read the article at wwdmag.com
May 20, 2019 (Charlotte, NC) – Bundy Group, a boutique investment bank focused on the advisory needs of clients for over 30 years, announces that it has advised Dorsett Technologies (Dorsett) in connection with its sale to an investment entity backed by Midwest Mezzanine Funds (MMF) and MC Controls, an infrastructure company owned by Mason Miller, an operating executive with experience in the energy and infrastructure markets. Dorsett Technologies provides industry-leading Supervisory Control and Data Acquisition (“SCADA”) technology systems used to monitor water, wastewater, stormwater, energy management, air quality, security, and intelligent business controls. Clint Bundy, Managing Director with Bundy Group, led the transaction.
With more than 40 years of experience in providing controls and automation solutions, Dorsett’s offerings and services allow clients to more effectively monitor their assets, improve productivity, and protect facilities against outside threats.
Tom Dorsett, President of Dorsett Technologies, stated, “Dorsett Technologies is a premier name in the Controls & Automation sector, as our team has worked diligently to build a customer-centric organization with leading technology systems.” He added, “We believe the partnership with MMF and MC Controls will only help Dorsett Technologies to further accelerate its growth and brand in the coming years.”
“The Dorsett transaction is another in a series of recent transactions in the Controls & Automation sector,” commented Clint Bundy. “The Dorsett team has done an outstanding job of building a leading industrial technology organization, and, with Mason Miller added to the senior management team, should realize tremendous growth in the future.”
Dorsett Technologies provides Supervisory Control and Data Acquisition (“SCADA”) technology systems used to monitor water, wastewater, stormwater, energy management, air quality, security and intelligent business controls. The Company’s proprietary InfoScan SCADA system has a proven history of reliability and flexibility with fully integrated hardware and software, which meets clients’ strictest engineering requirements but is still very easy to use and maintain. Dorsett has developed a strong regional reputation in its established markets in the Southern and Western United States, and its customer base includes federal government and military installations, small municipalities, and private industrial clients.
Midwest Mezzanine Funds was founded in 1992 and is based in Chicago, IL. Since inception, Midwest Mezzanine has partnered with private equity firms, independent sponsors, family offices, and management teams to provide over $700 million of junior capital to more than 100 privately-owned, lower middle-market companies throughout the United States. MMF continues to provide customized and flexible financing solutions as it currently invests from its sixth family of funds, which includes MMF VI and MMF VI SBIC. Over its 26+ year history as one of the oldest continually managed mezzanine firms in the United States, MMF has remained committed to the lower middle-market and its reputation as a trusted and dependable partner. From coast to coast, the Principals at MMF have established and grown relationships with sponsors, intermediaries, banks, management teams, and professional service firms. For more information visit: www.mmfcapital.com.
MC Controls, LLC, headed by Mason Miller, invests in established companies in the infrastructure and energy sectors where additional capital, management expertise, and operating resources can accelerate growth, with a focus on aging infrastructure trends. MC Controls invests in the form of buyouts and recapitalizations. Their approach is to establish strong partnerships with management teams and transform middle market companies into market leaders through organic growth and add-on acquisitions.
Bundy Group is a boutique investment bank with offices in Charlotte, NC, New York, NY and Roanoke, VA. The company specializes in representing business owners and management teams in business sales, acquisitions, and capital raises. The 30-year-old firm has closed over 200 transactions across a broad range of industries, including within the Controls & Automation market.
Press Release – March 2019
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Bundy Group served as exclusive advisor to Templeton-Vest
Bundy Group, a boutique investment bank, advised Templeton-Vest and its shareholders. ("Templeton-Vest" or the "Company"), one of Virginia’s premier integrators of fire, security, sound and data communications solutions, in a sale to the VSC Fire & Security, Inc. ("VSC"), a multi-state contractor for the inspection and installation of fire sprinkler, fire alarm, security, and low voltage systems. Templeton-Vest was founded in 1970 and is headquartered in Salem, VA with an additional office in Richmond, VA. Templeton-Vest is led by Tom Leonard and has approximately 55 employees. Michael Meehan President of VSC, stated that "We believe that Templeton-Vest will complement the services VSC offers customers in the Virginia market. We are pleased to welcome Tom and his team to the VSC family."
Bundy Group was hired by Templeton-Vest based on Bundy Group's extensive experience in the Systems Integration sector. In its role as the exclusive investment banking advisor to the shareholders and Company, Bundy Group ran a targeted marketing process focused on finding the right fit buyer for Templeton-Vest and obtaining maximum value for the shareholders.
Bundy Group was led by Managing Directors Jim Mullens and Clint Bundy. The Templeton-Vest transaction represents Bundy Group's second closed transaction in 2018 in the Systems Integration, Fire & Security sector.
About Bundy Group
Bundy Group is a boutique investment bank that specializes in representing business owners and management teams in business sales, capital raises and acquisitions. The 29-year old firm has closed over 200 transactions across a range of industries. More information can be found at www.bundygroup.com.
Bundy Group Healthcare & Dermatology Market Observations
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Bundy Group is pleased to provide you with its latest observations and experiences in the Healthcare & Dermatology industry. Our firm specializes in representing business owners and management teams in business sales, capital raises and acquisitions. Our work and relationships with business owners, industry executives, and investment professionals focused on the Healthcare & Dermatology market give Bundy Group the opportunity to obtain and share information.
Bundy Group Controls & Automation Market Observations
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Bundy Group is pleased to provide you with its latest observations and experiences in the Controls & Automation industry. Our firm specializes in representing business owners and management teams in business sales, capital raises and acquisitions. Our work and relationships with business owners, industry executives, and investment professionals focused on the Controls & Automation market give Bundy Group the opportunity to obtain and share information.
Bundy Group Building & Infrastructure Market Observations
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Bundy Group is pleased to provide you with its latest observations and experiences in the Building & Infrastructure markets. Our firm specializes in representing business owners and management teams in business sales, capital raises and acquisitions. Our work and relationships with business owners, industry executives, and investment professionals focused on the Building & Infrastructure Market give Bundy Group the opportunity to obtain and share information.
IoT One Podcast: Clint Bundy Interview (March 2018)
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Clint Bundy, Managing Director with Bundy Group, was invited to speak on a podcast for IoT One, a globally recognized industry platform devoted to accelerating the adoption of industrial internet solutions. Erik Walenza, the Shanghai, China-based CEO of IoT ONE, facilitated the discussion. The topics addressed were comprehensive and focused on key areas related to the Controls & Automation and Internet of Things (IoT) markets. Erik, a recognized IoT industry expert, and Clint, an investment banking advisor who is an active expert in the Controls and IoT markets, were able to fill the hour with a great deal of energy and information.
Press Release – December 2017
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Bundy Group Advises Trimite Powders in a Sale to Protech / Oxyplast Group
Bundy Group, a boutique investment bank, advised Trimite Powders Inc. (“Trimite Powders” or the “Company”), a world-renowned brand within the powder coatings manufacturing industry, in a sale to the Protech / Oxyplast Group (“Protech”), a Montreal, Canada-headquartered firm. Trimite Powders, based in Spartanburg, South Carolina since 1991, services clients both domestically and internationally. David Ades, Managing Director of Protech, stated that “Protech fully expects to benefit from the excellent business relationships that Trimite has developed over the years with its customers. Protech will maintain Trimite's powder manufacturing operations in Spartanburg. Trimite's customers will continue to be able to obtain the products they have been purchasing and, as well, will now have access to Protech's worldwide network of products and technology.”
Trimite Powders was formerly a division of Trimite Global Coatings, a United Kingdom-headquartered firm.
Bundy Group was led by Managing Director Clint Bundy. The Trimite Powders transaction represents Bundy Group's second closed transaction in as many years in the Chemicals Manufacturing sector.
About Trimite Powders
Trimite Powders, a world-renowned brand within the powder coatings manufacturing industry, has been providing a quality product and excellent service to its clients since 1991. The Company is headquartered in Spartanburg, South Carolina and services clients both domestically and internationally. Examples of industries that Trimite Powders services include Furniture, Building Products, Controls & Automation, and Energy & Power. More information can be found at www.trimiteusa.com.
About The Protech/Oxyplast Group
The Protech/Oxyplast Group is one of the world's largest manufacturers and marketers of powder coatings. Now in its forty-first year of operation, the Protech/Oxyplast Group continues to grow its reputation as the leader in quality and innovative powder coatings. With operations in six countries and licensees worldwide, Protech is an international force in the coatings market producing a large range of stock items as well as specialty coatings for the global market. More information can be found at www.protechpowder.com.
About Bundy Group
Bundy Group is a boutique investment bank that specializes in representing business owners and management teams in business sales, capital raises and acquisitions. The company maintains a strong focus on, and has strong transaction experience in the Chemicals Manufacturing sector. The 29-year old firm has closed over 200 transactions. More information can be found at www.bundygroup.com.
Summary of 2017 American Academy of Dermatology Conference Panel: Exit Planning for Dermatologists
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Clint Bundy, Managing Director with Bundy Group, was asked to sit on a panel for the 2017 American Academy of Dermatology conference. The panel was focused on Mergers & Acquisitions trends within the Dermatology segment. It was a lively session that included thoughts from the following panelists:
The attendance was strong, indicating the emerging importance of this topic for dermatology practice owners. The audience largely included practice owners considering next steps in succession and / or growth planning, heard detailed insights on a range of topics.
Highlights of the panel included:
Marc Darst efficiently managed the panelists through the topics and provided his own insights. There were several detailed questions from the audience, which the panelists were able to offer thoughts on.
The Bundy Group team appreciated the opportunity to serve on a panel with such an esteemed group from the Dermatology industry.
Due to controls and automation and Internet of Things (IoT) markets growing, buyers and investors are taking advantage.
The past four years have seen a rapidly changing landscape for potential buyers and investors in the controls and automation and Internet of Things (IoT) industry segments. The business world continues to focus on methods to improve productivity through the adoption of software, robotics and monitoring tools. The result has been rapid growth in the controls and automation and IoT markets, which is attracting a new group of private equity and growth equity investors, as well as industry, or strategic, buyers focused on taking advantage of this growth.
Whether a company is a pure control systems integrator, a controls and automation product manufacturer, or offers a technology-focused application, the options available to business owners for growth capital and/or selling a business have increased substantially over the past few years.
Private and growth equity
Private equity groups are private pools of capital, managed by investment professionals, which typically acquire a majority equity percentage, but not 100%, of a company. Growth equity groups are similar in profile, but usually are focused on completing minority equity investments, or a combination of debt and minority equity, in high-growth companies. Private and growth equity groups are focused on investing in growth markets and finding ways to help management expand through organic growth opportunities and add-on acquisitions. Within the past few years, a wave of private and growth equity groups has entered the market, validating the controls and automation segment as an attractive segment.
In addition, a critical mass of other private and growth equity groups are eager to break into the controls and automation market through a platform investment.
Classical versus new strategic buyers
Strategic buyers have been active and continue to be very relevant players in the controls and automation segment. The legacy, or classical, strategic buyers maintain a relatively consistent acquisition strategy that focuses on obtaining new market share and augmenting existing capabilities.
The rapidly evolving demand for quality technology offerings and engineering-driven technical services segment is producing a non-traditional, aggressive class of strategic buyers. These groups are using acquisitions to redefine their overall strategy.
The enormous opportunities that the controls and automation segment offers are motivating strategic buyers to redefine their strategy and consider any number of acquisitions, so they can stay ahead of the competitive business curve.
Internet of Things
The IoT emergence is driven by the market demand for more information, gathered through any manner of sensors, with the primary purpose of maintaining and improving productivity at the most basic level of a machine or piece of equipment. Plamen Nedelrchev, IT engineer with Cisco, stated that there were "1,000 internet devices in 1984, 1 million internet devices in 1992, and 10 billion in 2008. Fifty billion devices are expected to be connected by 2020."
Furthermore, Nedelrchev highlighted that in 2011, the number of new things connected to the internet exceeded the number of new users connected to the internet. The IoT explosion also has been driven by cloud computing and the technological ability to store, access, and interpret data at any given time. Recognizing that we are still in the early stages of the IoT market expansion, strategic buyers and growth equity investors are the key suitors for the burgeoning IoT technologies and companies currently in the market.
As the IoT market continues to grow and mature, there will likely be an acceleration of strategic buyer and investor activity.
Increased strategic, private equity and growth equity demand for acquisitions and investments in the controls and automation and IoT markets lead to stronger business valuations, which plays to the advantage of shareholders and managers active within these segments.
Clint Bundy is a managing director with Bundy Group, a boutique investment bank that specializes in representing controls and automation and IoT companies in business sales, capital raises and acquisitions.
This article appeared on controleng.com. Edited by Emily Guenther, associate content manager, Control Engineering, CFE Media, eguenther@cfemedia.com. Read the article at controleng.com
March 2, 2017
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Bundy Group Advises Appalachian Railcar Services, Inc. in a Sale to GenNx360 Capital Partners.
Bundy Group, a boutique investment bank, advised Appalachian Railcar Services, Inc. (“ARS” or the “Company”), a railcar repair, railcar storage, plant loading and unloading, and short line switching operation with 47 locations across 18 states in its sale to GenNx360 Capital Partners (“GenNx360”), a New York-based private equity firm investing in middle market companies. ARS was advised exclusively by Bundy Group in the sale process to GenNx360.
ARS serves a well-diversified customer base covering multiple industries, including agriculture, chemicals, manufacturing, energy, food processing, and rail logistics. In addition, several of ARS’ railcar repair locations are certified tank car repair locations.
“We are looking forward to working closely with ARS management to further accelerate the growth ARS has enjoyed. We are confident that the combination of ARS’ strong and well-established brand and GenNx360’s knowledge in the industry will help them to expand the service offering to their customers,” said Monty Yort, the Managing Partner at GenNx360 who led the transaction.
“The entire ARS management team is excited to partner with GenNx360,” said Kurt Higginbotham, President and CEO. “This represents a new chapter for ARS and will allow us to accelerate a number of growth programs already in progress. Joining a company with the operational expertise and capabilities of GenNx360 additionally opens up many possibilities for improvement and growth.”
The Bundy Group team was led by Managing Director Jim Mullens. ARS represents Bundy Group's second closed transaction over the past twenty-four months in the railcar repair services industry.
About Appalachian Railcar Services
Appalachian Railcar Services is one of the largest railcar repair companies in the U.S. ARS provides an extensive range of industrial logistics services, including tank and general railcar repair, rail logistics, plant loading and unloading, short line switching operations, and railcar storage. The Company operates throughout the mid-Atlantic, Northeast and Midwest regions. ARS is also one of the largest providers of railcar storage in the U.S. with over 12,000 car spots. In addition, several of ARS’ railcar repair locations are also certified tank car repair locations. ARS’s client list boasts of numerous Fortune 500 companies spread across multiple industries, including agriculture, chemicals, manufacturing, energy, food processing, and logistics. Founded in 2000 and headquartered in Eleanor, West Virginia, the Company has expanded into a national footprint across 47 facilities in 18 states, has over 400 employees and the management team has over 100 years of industry experience. For more information about Appalachian Railcar Services, visit: www.apprailcar.com.
About Bundy Group
Bundy Group is a boutique investment bank with offices in Roanoke, Virginia and Charlotte, North Carolina. The company specializes in representing business owners and management teams in business sales, acquisitions and capital raises for clients. The 27-year old firm has closed over 200 transactions. For more information visit: www.bundygroup.com.
