TransactionFirePower advised Corrosion Service on its management buyout
One of three equal shareholders of a infrastructure services company approached FirePower seeking advice on how buy out the other two shareholders.
The shareholders were in disagreement about the company's growth strategy, with the operating shareholder wanting to reinvest in the company’s growth, and the other two exclusively interested in their share of dividends.
FirePower's M&A Advisory team worked in confidence with the operating shareholder, structuring a deal to buy out the shares of the other two shareholders, and ensure the company’s growth. Confidentiality was critical throughout this transaction. FirePower put the deal in place through a discreet process and was able to navigate the process without the other two shareholders' knowledge.
The operating shareholder was able to exercise the “shotgun clause”, which gave the other two partners 30 days to reverse the deal.
Unable to put together a counter offer before the term expired, they were bought out. The infrastructure services business is now growing at a much quicker pace, with strong leadership and a clear vision.
what people are saying
As with most situations involving shareholders, I realized early on that an M&A Advisory team could play a critical role in managing this sensitive transaction. The team at FirePower provided invaluable guidance and advice.