In this article for Valley Business FRONT, Jim Mullens, Managing Director with Bundy Group, shares key insights for business owners looking to understand more about the mergers & acquisitions process.
Mergers and acquisitions grow companies. A merger is the coming together of two companies, whereas an acquisition is where a larger company swallows up a smaller one. Jim Mullens said that acquisitions most touted in the media are hostile takeovers, but he said “99% are friendly, where everybody wants to do the deal.” In fact, he has never participated in a hostile deal. Typically, he said, those are larger transactions in the billions, not millions, of dollars.
Mullens said the majority of deals are successful and get to closing, a cycle that takes typically six to 12 months from engaging the investment bank as an advisor. There is a lot of work to do to “get the house in order,” both operationally and financially, Mullens said. Success depends on many variables, such as a fair price, the transition period, and whether the seller is staying with the company moving forward.
Factors that can derail a deal include sellers changing their minds, too small of a buyer pool, the overall economic situation, and events out of everyone’s control like COVID. Sometimes the offer “doesn’t get the seller to where they want to be financially,” the owner gets sick, or the company loses a large customer during the sales cycle.
M&A have been at an “all time high the past two years,” said Mullens, “the best ever.” Buyers have been paying a premium, and opportunistic sellers have sold earlier than planned. In today’s tight labor market, buyers retain most if not all employees. “When buying a business, usually employees are at the top of the asset list,” said Mullens.
Four specific sectors Mullens mentioned as having a lot of M&A activity are business services, health care, technology, and manufacturing. All types of business can be involved in M&A, though. “Anything that is a viable business earning cash” is game, he said.
An investment bank like the Bundy Group plays an important role in an M&A. It represents sellers when they go to market to sell the business, finds buyers, and helps walk clients through the involved and complicated process. The investment bank brings multiple buyers to the table at the same time. Once a winner is chosen, the buyer has 60-90 days for due diligence such as in-depth looking at company records, and even talking to customers and employees.
Mullens said it is important to keep the owner focused on running the business so that the company is at its best at sale time, while the investment bank takes care of details of the deal.
The Bundy Group started in Roanoke 33 years ago and has expanded to have offices in Charlotte and New York. Most investment bankers have backgrounds in finance and often have MBAs, said Mullens. Investment banks earn their money through “success fees” (a.k.a. commissions) at closing, and sometimes through monthly retainers or equity in the new company.
While each investment banker specializes in an area of expertise, one of the biggest challenges is being a “jack of all trades,” said Mullens. “You have to learn a particular business inside and out before taking it to market,” he said. “You have to understand the nuances to be able to relate them to 30, 50, 100 buyers.”
Said Mullens, “Every deal is a standout to me because so much work goes into it.” Still, he recounts a couple of notable success stories. He represented Roanoke Sprinkler as a buyer (see A Brief Case Study below), then when the company was looking to sell it came back to him for that deal. Last year, the Bundy Group combined three companies into one and sold it to one buyer. “By combining them, we got a large premium price,” he said.
The M&A scene in the Roanoke region is “active,” said Mullens, but there is not a critical mass of businesses selling so there are “not a bunch of deals here every year.” One of the most common scenarios Mullens encounters is a business owner aged 55-70 who is looking to exit the business to retire or move on to new things.
Mullens sees the future of M&A strong through the end of this year. Inflation, a potential recession, and a resurgence of COVID are certainly variables that could “change the M&A landscape,” he said. Still, he feels it will continue to be a strong M&A environment. “People will always be selling their businesses,” said Mullens. “It is never going to go away.”
Ten years ago, John Corliss reached out to the Bundy Group with a targeted list of acquisition wants. He was living in Indianapolis and wanted to return to the Roanoke area. Corliss kept in touch with Jim Mullens, Managing Partner, about opportunities in the specialty electric business. Between then and 2018, Corliss looked at over 100 non-disclosure agreements and had 20 conversations with companies for sale, but when Mullens brought Roanoke Sprinkler to him things clicked. Corliss had a friend in the sprinkler business in Indianapolis, so he was familiar with it, and Mullens specialized in the fire protection industry.
“Jim represented the business 100% accurately,” said Corliss. Corliss closed the deal to purchase Roanoke Sprinkler in June of 2018. In December of 2021, a potential buyer contacted Corliss. Due to family circumstances, he was open to selling Roanoke Sprinkler, and the business value was greater than Corliss anticipated. But, as Corliss said, “it is always harder to sell something than to buy something,” so he realized he needed help from someone who understood acquisitions in more detail.
Corliss reached back out to Mullens after interviewing five or six other people. On the buying side, he had found Mullens “fair and competent.”
“I needed Jim as the sales side representative to put together the strategic plan to go to market,” Corliss said. This, plus Mullens’ relationships in the industry, generated multiple buyers and offers, and Corliss ultimately sold Roanoke Sprinkler to Summit Fire and Security. Corliss was pleased with Summit’s strong offer and its path to grow the business Corliss had worked to build. “It was a good fit,” said Corliss. “There was synergy.”
Likening the transaction to a buying or selling a house using a Realtor, Corliss said, “it is easier to have someone else negotiate for you because that person is not emotionally involved,” and s/he knows the “ins and outs” of the business.”
This article, by Jennifer Poff Cooper, appeared in the September 2022 issue of Valley Business FRONT as "Exit Strategies." Download a PDF of the issue at https://issuu.com/berryfield5/docs/vbfront_sep22.
In this article for Control Engineering Magazine, Bundy Group provides an update on mergers & acquisitions and capital placement activity in the automation market.
The business sale transaction announcements for the automation segment, which have occurred in summer 2022, highlighted a range of trends occurring in this high growth industry. First, strategic buyers and financial sponsors already in the segment continue to be extremely active participants in the automation market, as completing add-on acquisitions offer them a means for rapid growth and to realize synergies. Second, the below listed, recently acquired automation companies have an industry-centric focus and are often specializing their solutions around targeted client end-markets (i.e. food & beverage, life sciences, medical device, lumber). Third, the below transactions showcase the range of offerings that automation companies can deliver, including robotics manufacturing, systems integration, managed services, cybersecurity and data analytics. In review, these late summer 2022 transactions provide just a snapshot of key trends that are occurring throughout the automation industry and related mergers & acquisitions activity.
There are numerous automation transaction examples to note through August 2022, which exemplify the above developments. That includes the acquisition by Arsenal Capital Partners, a financial sponsor, of Innovative Products & Equipment, a manufacturer of automation systems for the medical device and life sciences markets. Arsenal will combine Innovative with another existing portfolio company, Eckhart, to create a larger automation solutions platform. Another transaction of interest is Amazon’s $1.7 billion purchase of iRobot, a manufacturer of home cleaning robots, which will allow the technology conglomerate to further its presence in the home automation market. A recently announced international transaction is Middleby Corporation’s acquisition of Colussi Emmes, an Italian-based manufacturer of automation solutions for the food processing industry. Based on Bundy Group’s current business sale and capital raise client engagements in the automation industry, we predict that the M&A momentum will endure as this in-demand market grows and evolves.
August 2022 automation transactions
8/23/22
Arsenal Capital Partners (“Arsenal”), a private equity firm announced that it has completed an investment in Innovative Products & Equipment, Inc., which it will combine with Eckhart, Inc., another Arsenal portfolio company, to build a leading automation solutions provider serving highly complex applications in high-growth end markets. Learn more.
8/13/22
Astrix and ResultWorks have decided to join forces to provide robust end to end services for life sciences, chemical, oil and gas and other science-based organizations. The combined team will help clients successfully transform digital and technical ecosystems across research, development, preclinical, clinical, regulatory and manufacturing. Learn more.
8/5/22
Amazon (NASDAQ:AMZN) and iRobot (NASDAQ:IRBT) announced that they have entered into a definitive merger agreement under which Amazon will acquire iRobot. iRobot has a history of making customers’ lives easier with innovative cleaning products for the home. iRobot has continued to innovate with every product generation, solving hard problems to help give customers valuable time back in their day. Learn more.
7/28/22
USNR, a division of Wood Technologies International, has acquired Timber Automation, an industry leader in wood processing equipment and technology. The combination solidifies USNR’s leadership position in providing equipment and technology to the global wood processing industry, adding more than 250 employees and over 200,000 square feet of manufacturing space. Learn more.
7/27/22
Leading automation and business technology services firm Accelirate Inc. announced that it has acquired Eshia Solutions, an integration services provider specializing in the MuleSoft platform. The combined company will strengthen its global presence with over 300 employees at locations across 6 countries. Through the acquisition, Accelirate expands its capabilities for helping clients achieve intelligent automation and integration at scale. Learn more.
7/27/22
The Middleby Corporation (NASDAQ: MIDD) announced the acquisition of Colussi Ermes, a leading worldwide manufacturer of automated washing solutions for the food processing industry. Located in Pordenone, Italy the company has approximately $50 million in annual revenues. Learn more.
7/21/22
GrayMatter, a provider of advanced industrial analytics, cybersecurity and automation solutions, announces the acquisition of Michigan-Based HTSE, Inc., a process automation & machine control provider for such industries as food & beverage, pharmaceutical, chemical and manufacturing companies. Learn more.
6/20/22
EQT portfolio company BBS Automation accelerates its MedTech / Life Sciences strategy with the acquisition of Kahle Automation S.r.l. – an Italian supplier of high-speed automation equipment for the MedTech and Life Sciences industries, catering to a wide spectrum of medical applications. Learn more.
6/1/22
Motion & Control Enterprises (“MCE”) announced that it has acquired Lone Star Machine Works (“LSMW”). Based in Mabank, Tex., LSMW was founded in 2000 and is a full-service provider of complex hydraulic repair, precision machining, welding, and fabrication services. The company has 42 associates and services industrial end-user and OEM customers across Texas, Oklahoma, Louisiana and Arkansas and beyond. Learn more.
Bundy Group is a CFE Media and Technology content partner. Bundy Group is a boutique investment bank that specializes in representing controls and automation, Internet of Things, and cybersecurity companies in business sales, capital raises, and acquisitions. Over the past 33 years, Bundy Group has advised and closed over 250 transactions, which includes numerous automation-related transactions.
In this article for Control Engineering Magazine, Bundy Group provides an update on mergers & acquisitions and capital placement activity in the automation market. Fifteen transactions were reported for the month of July.
The first half of 2022 continued to demonstrate strong demand from strategic buyers, financial sponsors (i.e. private equity groups) and special purpose acquisition companies (SPACs). Buyer and investor interest continue to be on a global scale and across multiple subsegments of automation, including control system integration, robotics, automation software and control instrument manufacturing. Even with inflationary and possible recession headwinds, there is substantial buyer activity, led by seasoned players in the automation sector. In short, the automation market is considered a safe haven for capital in tumultuous macro-economic times.
There are numerous automation transaction examples to note through June 2022, which demonstrate this robust mergers & acquisitions activity. That includes the acquisition of Radwell, a global distributor of industrial automation components, by CVC Capital Partners, an international financial sponsor. Another example is publicly traded Astec Industries’ acquisition of MINDS, a leader in plant automation control systems and cloud-based data management firm for the asphalt industry. Based on Bundy Group’s current client engagements, which are business owners focused on sales and capital raises, we see no signs of momentum loss in the automation market in the foreseeable future.
7/20/22
Hillenbrand, Inc. (NYSE: HI) announced that it has signed a binding offer to acquire LINXIS Group from IBERIS INTERNATIONAL S.À R.L, an affiliate of IK Partners, and additional sellers for an enterprise value of approximately €572 million. LINXIS Group is a leading global provider of mixing, ingredient automation, and portioning solutions for food and other higher growth end markets. Learn more.
7/19/22
Alvaria, the world leader in enterprise-scale customer experience and workforce engagement management, announced the completion of the acquisition of the Intelligent Analytics Platform from Cicero Inc. The addition of this capability will accelerate how customers understand consumer and employee behavior to build better workflows with a simpler approach to complex problems with attended robotic process automation (RPA) and desktop analytics. Learn more.
7/19/22
MiddleGround Capital, an operationally focused private equity firm has acquired PVI Holdings (“PVI”). PVI is a market leading flow control distributor focused on serving MRO applications across marine, chemical, downstream energy, and other industrial end markets. PVI provides both third party and proprietary branded products alongside its in-house engineering and repair services. Learn more.
7/6/22
Otodata Holdings, Inc. has acquired AIUT’s LPG division, a leading supplier of IoT ecosystems for the global LPG remote monitoring and metering market. For over 15 years, they have been cooperating with leading companies in the global LPG market by equipping their customers with advanced data readout, monitoring, metering and analysis solutions. Learn more.
6/30/22
Hexagon AB, a global leader in digital reality solutions combining sensor, software and autonomous technologies, announced the acquisition of TST Tooling Software Technology LLC. TST is the USA and Canada master distributor of VISI, Hexagon’s dedicated CAD CAM software for the mould and die sector, and the PEPS CAM programming software for laser and wire EDM machines. Learn more.
6/29/22
SMART Global Holdings Inc. (SGH) entered into a definitive agreement with affiliates of Siris Capital Group LLC to acquire Stratus Technologies, a provider of simplified, protected, and autonomous computing solutions in the data center and at the edge. Under the terms of the agreement, SGH will pay $225 million in cash at closing and an earn-out payment of as much as $50 million, based on the gross profit performance of the Stratus business during the first full 12 fiscal months of Stratus following the closing. Learn more.
6/28/22
Downey Engineering in Toowoomba has been acquired by SAFEgroup Automation. Downey Engineering are the leading system integrator on the Darling Downs, with an incredible depth of experience in Rockwell, Schneider, Siemens, Omron automation platforms and Ignition SCADA. They are the leading provider of solutions to Agriculture, Mining, Manufacturing, Food & Bev, Energy, Infrastructure and Water clients across the region and beyond. Learn more.
6/24/22
Industrial Service Solutions (ISS) has acquired full ownership of Servo South, Inc., a U.S.-based electronic and electromechanical service provider specializing in CNC machinery and automated manufacturing. The acquisition expands ISS’ position in the rapid-growth industrial automation sector, facilitating extension of servo motor and electronics repair services at key ISS facilities across the United States. Learn more.
6/22/22
CORE Industrial Partners (“CORE”), a manufacturing, industrial technology, and industrial services-focused private equity firm, announced today the acquisition of GoProto (“GoProto” or the “Company”), a provider of custom manufacturing services with a comprehensive suite of both additive and traditional manufacturing technologies. The acquisition combines GoProto with CORE portfolio company RE3DTECH to form an additive manufacturing platform focused on production parts utilizing Industry 4.0 capabilities. Learn more.
6/6/22
BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, and Frazier Healthcare Partners, a leading private equity firm focused exclusively on the health care sector, announced a definitive agreement for BD to acquire Parata Systems, an innovative provider of pharmacy automation solutions, for $1.525 billion. Parata’s portfolio of innovative pharmacy automation solutions power a growing network of pharmacies to reduce costs, enhance patient safety and improve the patient experience. Learn more.
6/6/22
Symbotic LLC, a leader in A.I.-enabled robotics automation technology, today announced the completion of its business combination with SVF Investment Corp. 3 (NASDAQ: SVFC), a special purpose acquisition company sponsored by an affiliate of SoftBank Investment Advisers, to become a publicly traded company. Learn more.
5/24/22
EVAPCO announces the formation of EVAPCO Select Technologies, following the acquisition of Select Technologies, Inc. EVAPCO Select Tech will pursue an expanding market demand for sophisticated control systems for Food Processing and Cold Storage facilities to optimize performance and improve system reliability. Our long-standing history of working with Select Technologies, Inc. in the past on complex projects for key food processing clients, puts this new partnership at a great advantage to provide new and innovative systems to the industries and markets we support. Learn more.
5/24/22
Bettcher Industries (“Bettcher”), a leading manufacturer of protein processing equipment and owned by private equity fund KKR, announced the signing of a definitive agreement under which it will acquire Frontmatec (the “Company”) from Axcel. Headquartered in Kolding, Denmark, Frontmatec is a global manufacturer of end-to-end automated solutions for pork and beef processing, with world-class robotics and vision system capabilities. The Company serves as a full line supplier of processing equipment, parts and services, instruments, and software, which help solve key issues around food and worker safety. Learn more.
4/6/22
Astec Industries will acquire Minds Automation Group Inc., a provider of plant automation control systems and cloud-based data management for the asphalt industry. British Columbia, Canada-based Minds has locations in the United States, United Kingdom, France and Belgium. The company develops advanced, customizable plant automation control systems. Learn more.
4/4/22
CVC Capital Partners VIII has invested in Radwell International, a global distributor of new and surplus industrial automation components. CVC Fund VIII is acquiring an interest in the Company from founder & CEO Brian Radwell and Greenbriar Equity Group, L.P. (“Greenbriar”), both of whom will remain significant shareholders going forward. Learn more.
Bundy Group is a CFE Media and Technology content partner. Bundy Group is a boutique investment bank that specializes in representing controls and automation, Internet of Things, and cybersecurity companies in business sales, capital raises, and acquisitions. Over the past 33 years, Bundy Group has advised and closed on over 250 transactions, which includes numerous automation-related transactions.
Bundy Group has developed an innovative approach for business owners to leverage, the consortium sale, which creates enhanced value in a sale or recapitalization. A consortium sale is combining two or more complementary companies and presenting them together to a highly qualified and attractive group of buyers. On the surface, presenting two or more companies in a sale can appear straightforward and simple. However, a material amount of preparation, communication, and vision, as well as a competitive process, are required of all key parties to execute on the consortium sale.
Clint Bundy and Stewart Carlin, Managing Directors with Bundy Group, discuss the consortium sale approach in this episode of the Bundy Group Insights series.
For more information on this topic, visit Consortium Sale: Strategy for Business Owners to Increase Value.
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About Bundy Group
Bundy Group is an industry-focused investment bank that specializes in representing business owners and management teams in business sales, acquisitions, and capital raises. The team of highly experienced investment bankers leverages extensive industry knowledge and experience to provide hands-on guidance to clients through every phase of the transaction. With over 250 closed deals over the past 33 years, Bundy Group’s primary goals are to provide high quality options and actionable insights and to deliver an optimal strategic fit at a premium value for our clients.
Bundy Group Securities, LLC, is a registered broker-dealer and member of FINRA and SIPC. Check the background of Bundy Group Securities, LLC at FINRA's BrokerCheck.
It is common for the Bundy Group team to be in confidential discussions with multiple owners in the same industry at the same time. These owners are contemplating hiring Bundy Group to represent them in a sale and often ask how our team can drive the utmost value in a sale process. In these unique situations, we propose a consortium sale as a means to capture enhanced value. In short, this occurs by partnering with at least one other business in a sale and engaging Bundy Group’s investment banking team to manage the consolidated sale process.
What is a consortium sale?
A consortium sale is taking two or more companies in the same industry and presenting them together to the buyers market. On the surface, presenting two or more companies in a sale can appear straightforward and simple. However, a material amount of preparation, communication, and vision are required of all key parties to execute on this strategy. As an investment banking advisor, Bundy Group assists with these key steps.
Step I: Consortium identification
First, candidates need to be selected for the consortium. In Bundy Group’s prior transactions, consortiums were formed not just along industry lines but also based on pre-existing relationships that owners had with one another. It is easier to get excited about teaming up with another business in a sale if you, as an owner, have a lot of respect and affection for the other consortium candidate(s) and have a complementary, not competitive, fit with the other organization(s).
While Bundy Group might suggest a strong candidate based on our experience and knowledge of the situation, the consortium parties decide who is included in the collective sale. It is important to note that in a consortium sale the candidates will not formally merge or integrate prior to a transaction. Instead, they will be presented together as one platform acquisition opportunity.
Step II: Preparation and presentation
To successfully execute and deliver enhanced value in a consortium sale, the following key positioning points must be addressed:
Why a consortium approach?
To answer this question, we will reference the typical financial sponsor playbook for acquisitions. A financial sponsor’s goal is to buy a platform (i.e. first investment) at a buyer-friendly valuation and to complete add-on acquisitions at even lower valuation multiples. This arbitrage strategy allows financial sponsors to create enhanced returns, though at the expense of the sellers.
With a consortium strategy, Bundy Group is flipping the financial sponsor approach on its head to benefit business owners and sellers in the following ways:
The Pacific Consortium case study
In 2021, three companies in the equipment, energy, and industrial service segments formed a consortium affectionately called the Pacific Consortium. Those firms were Industrial Electric Machinery, A+ Electric Motors, and Reed Electric. As highlighted earlier, these organizations fit the recommended rule of thumb: they had complementary service offerings, operated in the Western U.S, and did not compete. In addition, each of the firms had similar organizational cultures and values. The owners of each organization had an established relationship with one another prior to the sale process and had profound respect for each other’s firms.
These three consortium members, operating under the same organizational structure post-close, would realize a tremendous amount of growth, revenue, and cost cooperation. Individually, these organizations were frequently approached by buyers already active in their segments or who wanted a platform in the industry.
Bundy Group had existing relationships with all three firms through our tenured experience in the space. Over a five-month period, we ran a streamlined process with the Pacific team members that included both financial sponsor and strategic buyer interest. Our goals were to close by December 31, 2021, to focus on a group of strong-fit buyers, and to obtain a premium valuation for all consortium members.
Accomplishing all three goals, the Pacific Consortium sale closed with Integrated Power Services, a financial sponsor-backed strategic buyer, who desperately sought a strong Western U.S presence. Once the purchase agreement was signed, IPS became the leading electro-mechanical services player in the Western U.S. and the Pacific management team was tasked with leading IPS’ Western U.S. operations.
Finally, the Pacific Consortium shareholders elected to reinvest in the IPS platform, anticipating a second bite of the apple when IPS is sold by its current financial sponsor owner to another party.
Bundy Group’s role in a consortium sale
With proprietary experience in the consortium approach and successful client transactions of this structure, Bundy Group is capable of successfully:
In summary, Bundy Group’s end goals are to fully represent the consortium clients and their interests, to drive value, and to find best fit buyer for the consortium’s future benefit.
“After the Bundy Group team and I developed the idea of the Pacific consortium, the Bundy Group team worked flawlessly and in a collaborative fashion with the respective Pacific firms to manage a highly competitive sale process.” Spencer added, “At the conclusion of the transaction, we had a great new partner in IPS and a Pacific valuation that was significantly higher due to a consortium sale versus selling each company individually. We could not have been happier with the outcome that the Bundy Group team delivered.”
Spencer Wiggins, CEO & Majority Owner, Industrial Electric Machinery
While the consortium approach may not be a reliable opportunity for every business, there are many firms across a range of industries that could benefit from this strategy. It can be a tremendous way for an owner that is considering a sale to obtain a significantly enhanced value. Give thought to other businesses that may be candidates for a consortium partnership with you, consider contacting those owners to begin a conversation, and schedule an informal discussion with the Bundy Group team to explore this potential opportunity.
About Bundy Group
Bundy Group is an industry-focused investment bank that specializes in representing business owners and management teams in business sales, acquisitions, and capital raises. The team of highly experienced investment bankers leverages extensive industry knowledge and experience to provide hands-on guidance to clients through every phase of the transaction. With more than 250 closed deals over the past 33 years, Bundy Group’s primary goals are to provide high quality options and actionable insights and to deliver an optimal strategic fit at a premium value for our clients.
Bundy Group Securities, LLC, is a registered broker-dealer and member of FINRA and SIPC. Check the background of Bundy Group Securities, LLC at FINRA's BrokerCheck. Testimonials may not be representative of the experience of other customers and are no guarantee of future performance or success.
Whether you are at the beginning of your business journey or are running into an unexpected delay just before reaching your destination, the concept of business value can be used like GPS to help you find the best route for your business. Clint Bundy, Managing Director with Bundy Group, participated in a CSIA MasterClass Workshop on building and realizing value for automation companies.
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Bundy Group, a 33-year-old, industry-focused investment bank, announces that it has advised Roanoke Sprinkler, a full-service fire sprinkler company, in a sale to Summit Fire & Security, a nationally-focused fire protection company. The transaction was led by Jim Mullens, Managing Director with Bundy Group, and marks the firm’s sixth fire, security & safety transaction within the past three years.
John Corliss, President of Roanoke Sprinkler, commented, “Roanoke Sprinkler has built a solid reputation of being the go-to fire sprinkler company in Southwest Virginia. Now, as we join Summit Fire & Security, we will continue leading this industry as we offer expanded services to our customers and a successful future for our employees.”
“Roanoke Sprinkler has built an outstanding company over the last 20 years of operation, and Bundy Group was excited to be a part of this transaction and work with such a quality client,” commented Jim Mullens. Jim added, “The Roanoke Sprinkler team has demonstrated its ability to provide outstanding solutions to its clients and be a leader in an attractive region, reasons which helped to drive such strong buyer interest in the acquisition opportunity.”
John Corliss commented about Bundy Group, “I hired this recognized investment bank based on its experience in the fire protection industry, existing relationship with Roanoke Sprinkler, ability to understand and best position clients, and strong reputation.” John further detailed, “Jim and the Bundy Group team represented Roanoke Sprinkler in the sale to me in 2018, and in that competitive process I gained a great deal of respect for their ability to create value for clients. When it was time to sell, I knew I needed Bundy Group on my team to help ensure a strong valuation and efficient process, both of which they delivered.” Finally, John stated, “I was very pleased with the work of Jim and the Bundy Group team.”
Lorenc Biqiku and Megan Hagemann, Vice Presidents with Bundy Group, also worked on the transaction team. Bundy Group has significant experience in the fire, security & safety, systems integration, and automation sectors, and has previously advised such clients as Systems Electronics, SuperHero Fire Protection, MR Systems, Commercial Fyr-Fyters, Templeton-Vest, and Dorsett Controls. For more information about our industry expertise and other recent transactions, visit Industry Expertise - Bundy Group.
About Bundy Group
Bundy Group is an industry-focused investment bank that specializes in representing business owners and management teams in business sales, acquisitions, and capital raises. The team of highly experienced investment bankers leverages extensive industry knowledge and experience to provide hands-on guidance to clients through every phase of the transaction. With 250 closed deals over the past 33 years, Bundy Group’s primary goals are to provide high quality options and actionable insights and to deliver an optimal strategic fit at a premium value for our clients.
Bundy Group Securities, LLC, is a registered broker-dealer and member of FINRA and SIPC. Check the background of Bundy Group Securities, LLC at FINRA's BrokerCheck. Testimonials may not be representative of the experience of other customers and are no guarantee of future performance or success.
ByrdAdatto, a healthcare-focused law firm headquartered in Dallas, invited Clint Bundy to join the organization’s podcast. Clint, Brad Adatto, and Michael Byrd had an enjoyable discussion on a range of topics related to mergers & acquisitions, healthcare, most complicated transactions, and the benefits of a Louisiana-style crawfish party.
Tune in as Clint shares tips on how to maximize the value of any business. The episode's transcript is available at Investment Banking with Clint Bundy | ByrdAdatto.
About Bundy Group
Bundy Group is an industry-focused investment bank that specializes in representing business owners and management teams in business sales, acquisitions, and capital raises. The team of highly experienced investment bankers leverages extensive industry knowledge and experience to provide hands-on guidance to clients through every phase of the transaction. With over 250 closed deals over the past 33 years, Bundy Group’s primary goals are to provide high quality options and actionable insights and to deliver an optimal strategic fit at a premium value for our clients.
Bundy Group Securities, LLC, is a registered broker-dealer and member of FINRA and SIPC. Check the background of Bundy Group Securities, LLC at FINRA's BrokerCheck.
In this article for Industrial Cybersecurity Pulse, Clint Bundy shares his insights on mergers & acquisitions activity in the cybersecurity market.
While the mergers and acquisitions (M&A) and capital raise markets have a wary eye on numerous potential macroeconomic headwinds — the Ukrainian war, inflation, the great resignation — the cybersecurity market continues to demonstrate its strength and to attract a great deal of interest. Strategic buyers and financial sponsors (i.e., private equity groups, family offices, debt and equity groups) see the enormous growth opportunities in the market as justification for paying premium valuation multiples for cybersecurity-oriented firms.
Pitchbook, a content platform dedicated to M&A and capital markets, recently stated, “We expect to see many more private equity-backed cybersecurity deals as the market expands with increasing interest; concerns about cyberattacks only heightened with Russia’s invasion of Ukraine, and the Securities and Exchange Commission (SEC) proposed enhanced rules and disclosures regarding cybersecurity by public companies in early March, showing that the industry continues to be an important and developing area of focus.”
The range of recent cybersecurity deals highlighted in this article demonstrates the diversity in capital and buyer options that are focused on this attractive segment. Recent examples of strategic buyers and financial sponsors targeting the cybersecurity market include an international consulting firm (Booz-Allen), a special purpose acquisition corporation (Mount Rainier Acquisition Corp.), global technology titan (Google) and an international private equity firm (EQT). Furthermore, recently announced transactions show the variety of company offerings and capabilities tied to the cybersecurity market.
These representative transactions include a firm offering traditional cybersecurity technology solutions and services (Mandiant), a company that offers cybersecurity training and certification training programs (EC-Council) and a renewables-focused cybersecurity provider (Green IT Energy). The M&A and capital raise markets’ recognition of the growth in the cybersecurity space, as well as the multiple ways that acquisition and investment candidates can service this segment, validates the enormous strength of the cybersecurity market.
About Bundy Group
Bundy Group is an industry-focused investment bank that specializes in representing business owners and management teams in business sales, acquisitions, and capital raises. The team of highly experienced investment bankers leverages extensive industry knowledge and experience to provide hands-on guidance to clients through every phase of the transaction. With over 250 closed deals over the past 33 years, Bundy Group’s primary goals are to provide high quality options and actionable insights and to deliver an optimal strategic fit at a premium value for our clients.
Bundy Group Securities, LLC, is a registered broker-dealer and member of FINRA and SIPC. Check the background of Bundy Group Securities, LLC at FINRA's BrokerCheck.
As part of our continued work in the physician practice management sector, Clint Bundy recently attended the American Academy of Dermatology conference in Boston. He had a busy couple of days where he met with numerous practice owners, industry consultants, and buyer contacts. Below are his key takeaways from that conference:
Consumerism of healthcare
The consumerism of healthcare continues to accelerate. Practice owners have recognized that patients look for solutions, advice, and convenience now. As Kyle Morham, Co-Founder of NextPatient, a technology firm servicing the dermatology and aesthetics market, said to Clint at AAD, “Online booking volume is growing across our customer base. It demonstrates patients’ preference for scheduling medical appointments online, which comes as no surprise given that patients book virtually every other service online, from food and entertainment to professional services.”
Robust dermatology market
The dermatology market is as strong as ever! The post-COVID environment is here from a business perspective, and practices are seeing full patient schedules across all key service areas, including medical, cosmetic (‘zoom boom’ effect) and Mohs. Finding talent (dermatologists, mid-levels, administrative staff) to support the growth of a practice continues to be a challenge for many practice owners.
Heightened buyer activity
There is continued buyer and investor demand for practices. Existing dermatology platforms (i.e. strategic buyers) and financial sponsors eager to get into the dermatology market are abundant today, which leads to options for dermatologists and cosmetic plastic surgeons. Buyers are finding fewer independent practice acquisition opportunities than several years ago, and valuation multiples have steadily increased for those remaining independent practices.
Advisory support + driving value
Advisory support is in demand by dermatologists and respected by buyers. With numerous options--full sale vs. majority equity recapitalization--practice owners like having an advisor experienced in the dermatology & aesthetics market to consult and to drive additional practice value. Furthermore, an investment banking representative focused on delivering value for the practice in a competitive sale process can be critical to the owner. As practice owners are often reminded in discussions with buyers, those acquirors are still in the business of buying quality practices for lower valuations.
“If I have to buy a practice through an investment banker-led process, then I am willing to pay up to 55% more than in a situation where I only have to negotiate with the practice owner.”
- Buyer and AAD conference attendee
Stewart Carlin, Managing Director with Bundy Group, shares his key takeaways from HIMSS22. For more information about the Healthcare Information and Management Systems Society (HIMSS) event, visit himss.org/global-conference.
Webinar Details
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About Bundy Group
Bundy Group is an industry-focused investment bank that specializes in representing business owners and management teams in business sales, acquisitions, and capital raises. The team of highly experienced investment bankers leverages extensive industry knowledge and experience to provide hands-on guidance to clients through every phase of the transaction. With over 250 closed deals over the past 32 years, Bundy Group’s primary goals are to provide high quality options and actionable insights and to deliver an optimal strategic fit at a premium value for our clients.
Bundy Group Securities, LLC, is a registered broker-dealer and member of FINRA and SIPC. Check the background of Bundy Group Securities, LLC at FINRA's BrokerCheck.
The resilience of the dermatology and aesthetics market, coupled with growth opportunities, continues to fuel the M&A trend. Clint Bundy, Managing Director with Bundy Group, shares key market insights in this article for Practical Dermatology.
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