The largest independent inspection and testing services firm serving the non-residential construction and property management markets. The Chicago-based firm services national, regional and local clients from its 96 branch offices.
Brookwood Associates advised the shareholders of PSI, including its majority owner, Bain Capital, on the sale of the company to a middle market private equity firm.
Engagement Process and Outcomes
Recent History – The non-residential construction market that PSI serves is cyclical and was in the early stages of rebound during the marketing process. This situation, combined with the fact that a major Wall Street investment banking firm had recently failed in its attempt to sell PSI off of fairly aggressive projections, provided Brookwood with the challenge of establishing a highly credible story that portrayed the strengths and upside potential of the business in order to capture full value.
Effective Positioning – After conducting a significant amount of research and diligence, Brookwood built a comprehensive market-by-market projection model that outlined a reasonable view of the company’s potential. Additionally, a thoughtful information memorandum favorably positioned PSI and supported its position as the market leader in the highly fragmented industry.
Strong Marketing and Negotiating – A broad marketing process generated numerous attractive offers. As a “clean break” was of critical importance to Bain Capital, Brookwood assisted the sellers in negotiating a highly favorable indemnification structure.
Excellent Result – The transaction greatly exceeded our clients’ value expectations.