Case Study

Successfully Navigating the Sale of a Fiber-Optics Cable Construction Company

Shaking hands

“I am happy!  The executive team is awesome! No different whatsoever than the personalities I came to know before transaction.  They are going out of their way to help the company be successful in all aspects, including hitting our targets.”

“We are very pleased to have partnered with Newport LLC for this transaction.  Newport’s team was instrumental in helping DataWatt find the right partner, and they were an integral part of negotiating the terms of the transaction.  Newport provided sound advice and insight to our management team throughout the process.  Their knowledge of private equity firms who are active in our industry was critical to finding the right partner.”

Martin Burkhart, CEO of DataWatt Solutions

Insights

  • The founder of a fiber-optics cable construction company wanted to:
    • Position the company for even greater growth
    • A local buyer was preferred, but the founder was also willing to consider a strategic buyer

Action

  • Two Newport partners served as the exclusive financial advisor to the company
    • The partners set preliminary valuation expectations with the founder
    • Transaction sale documents were prepared (teaser, CIM, updates)
    • Due diligence materials were provided in virtual data room
    • A buyer list was developed and a defined sales strategy was executed
    • A strategic acquirer was identified that was prepared to make a competitive proposal for ownership succession

Results

  • Newport ran the sales process and executed a successful sale on very favorable terms
    • The founder will continue with merged company
    • The two Newport partners managed the entire sales process virtually due to the ongoing pandemic and successfully closed on time
    • The founder is extremely happy with the outcome and enjoys working with new leadership team
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