Sumter Builders

Sumter Builders was a rapidly growing, family-owned electric utility infrastructure contractor based in South Carolina. The Company had significant long-term contracts with large Southeastern electric utilities.

Engagement Goals

Sumter’s owners engaged Brookwood to sell the business at a time of rapid consolidation of both utilities and infrastucture contractors.

Engagement Process and Outcomes

Brookwood’s Role – Brookwood provided significant assistance with: (i) analyzing and demonstrating the profitability of the business by customer; (ii) conducting thorough up-front due diligence on Sumter’s percentage completion balance sheet accounts to prepare for the inevitable questions about current projects; and (iii) conforming Sumter’s financials to public GAAP standards to maximize value. Brookwood prepared an exhaustive buyers list, including numerous large infrastructure contractors.

The Result – Brookwood received five offers for the business, including an offer from a global leader in mechanical and electrical construction and outsourced facilities services. Strongest offer was from Quanta Services (NYSE:PWR) . The offer featured attractive economics, and Sumter would serve as Quanta’s growth platform in the Southeast. Brookwood assisted in structuring the transaction as a tax-free reorganization, while also achieving the needs for different economics among the family interests.