Project Armstrong
When Project Armstrong approached True North Mergers & Acquisitions to explore a sale, we knew it was a landmark opportunity—and a chance to succeed where previous efforts had fallen short.
Despite their assets and status as the Midwest’s largest concrete infrastructure company, the owners’ previous attempts to sell the business were unsuccessful. However, our team knew we could unlock the company’s value with the right approach.
With our guidance, the owners sold their business to a private equity group for a remarkable 28% higher price than the initial offer.
Despite unsuccessful attempts to sell the business independently, we immediately recognized our client had the right assets:
- A 60+ year legacy
- Status as the Midwest’s largest concrete infrastructure supplier
- State-of-the-art manufacturing facilities
- An exclusive license to produce Redi-Rock retaining wall systems in Minnesota
- A diverse customer base that included multiple municipalities
With these advantages in mind, our team conducted extensive research on key industry players, market trends, and buyer activity. This preliminary research helped us create a list of 150+ qualified prospects.
Through our proprietary QuietAuction™ process, we generated significant interest. In total, we received six indications of interest and six letters of intent.
While financial viability was essential, it was also critical to further narrow our list of prospects down to those who shared our client’s values and were committed to preserving the business’s 60+ year legacy. We then arranged a series of owner-buyer meetings to ensure we had the right fit.
To find a strong financial and cultural fit, our deal team researched key industry players, market trends, and buyer activity to create a comprehensive list of buyer targets. Consistent outreach to the targeted buyers created a high level of interest from pre-qualified buyers.
Leveraging our three-phase QuietAuction™ process, we secured six competitive offers and facilitated negotiations. Follow-up management meetings fostered trust among all parties and brought the deal closer to completion.
During the execution phase, we conducted rigorous due diligence, a comprehensive quality of earnings review, and navigated the complexities of negotiating legal agreements.
Private equity groups were particularly drawn to our client’s:
- Proven financial performance and EBITDA growth
- Strong market position
- Growing demand, particularly from municipalities with aging water and sewer systems
- Multiple avenues for growth through new products and services
With six letters of intent in hand, our team had the leverage we needed to begin negotiations. We effectively showcased the potential of this specialized company, using it to drive up the sales price.
Through our QuietAuction™ process, we achieved exceptional results for the owners. In fact, the final sales price exceeded the private equity group’s initial offer by 28%.
This transaction is the perfect example of how our team unlocks additional value and closes deals without compromising our client’s values—even in cases where previous sale attempts were unsuccessful.
