Case Study

Acquisition Due Diligence and M&A Experience To Support A New Team

Man standing in window

Insights

  • A recently formed private equity firm identified an acquisition target in the energy space
  • The target was privately owned with a strong record of growth and an enterprise value of approximately $30 million
  • The target was an asset-heavy, capital intensive business that required continual cash infusions
  • The PE firm developed a recapitalization plan for the target and received a lukewarm reception to its proposal
  • With no energy or sector-relevant executive management expertise, the PE firm was searching for a way to expand its capabilities and improve its reception by the target

Action

  • A Newport partner with extensive energy sector experience was retained
  • The target’s financial and operating information was reviewed and assumptions were validated around the company’s business
  • A roadmap was developed for future business development and growth opportunities
  • The Newport partner also provided the PE firm credibility with the target company as well as with potential transaction funding sources
  • The Newport partner further provided both strategic and tactical advice on how to successfully navigate through a prolonged deal process

Results

  • Ultimately, a transaction was announced with another buyer, with the PE firm as runner-up
  • The PE firm is now pursuing other opportunities and the Newport partner was retained as a fractional operating partner to assist in pursuing additional acquisition opportunities
Newport Logo Stacked

10 Strategies to Finance the Growth of Your Business

Fill out the form below to download the infographic.