Beacon Completes Transaction of a Mechanical Supplier & Equipment Service Business
TORONTO, ONTARIO, CANADA, April 10, 2020 — Beacon Mergers & Acquisitions is pleased to announce the completion of a yet another transaction with the sale of one of Ontario’s leading water pump service and repair suppliers and service providers. Beacon was engaged to act as the exclusive sell-side advisor for the client in September 2019 and worked with the company’s owners to prepare appropriate deliverables (including a business valuation, confidential investment memorandum and marketing teaser information). Through its proprietary buyer database, Beacon was able to quickly solicit interest from multiple buyers. In the month of December 2019, the business received two competing Letters of Intent. After assessing all the parameters of the proposed transactions and conducting interviews with both parties, Beacon advised its clients on the one that presented a higher likelihood of completion as well as a more compelling synergistic fit.
Beacon structured the deal as a 100% equity purchase allowing the owner to take advantage of the capital gains exemption (CGE). While the owners will remain with the company for a period of time, the transaction represents a clean exit with a defined timeline achieving their goals of retirement. “In this particular case finding the right buyer was the easier part of the transaction. Completing the due diligence and closing the transaction, specifically in the background of the COVID-19 pandemic, was the more challenging part of the process. I am extremely proud of both the seller and the buyer keeping their focus during these challenging times”, said Alex Shteriev, Partner and Co-Founder of Beacon. “The entire Beacon team as well as the advisors for each of the two parties put a great effort in the process and finishing this sizable transaction under the current circumstances is a great testament of the professional approach everybody brought to the table”, added Will Fischtein, Partner and Co-Founder of Beacon.
Incorporated in the early 1980’s, the business services a roster of blue chip clients that include universities and large REITs and property developers. It offers installation, maintenance and repair services for pumps and motors for HVAC systems. In addition, the company generates revenue from the sale of water pump parts. The business provides 24/7 customer service and has an excellent reputation in the industry due to its long-standing history.
Beacon Mergers & Acquisitions is a full-service M&A advisory firm with offices across Ontario and in Washington, D.C, as well as strategic partnership in the Asian subcontinent through Prime Bank Investment Limited. Beacon’s services include M&A advisory, debt financing advisory, and business valuation services to private companies in the lower middle market. Beacon is a three-time recipient of the Consumer Choice Award for Best Business Brokerage Firm in the Greater Toronto Area, and a member of several international M&A organizations.