SEACAP Success Stories
AFCO Industries, Inc.
AFCO manufactures value-added aluminum, plastic, and wood products for the commercial and residential building markets. Finished goods are sold nationally to manufacturers, wholesalers and retail chains.
SEACAP services employed:
- Development of Exit Options for the Founders
- Analysis of an Underperforming AFCO Division
- Divestiture of Non-core Operation
AFCO operated three U.S. divisions - two in the Southeast and one in the Northeast U.S. Following SEACAP’s analysis of the three operating divisions, it was determined that one non-core (and under-performing) division was hampering the company’s overall growth. The sale of this division would improve the profitability of the company and support the founders’ exit goals by providing liquidity.
The engagement continued with SEACAP packaging this division for a private sale to one of a select group of identified potential buyers. After prioritizing the acquisition candidates, a rifle-shot approach was taken to qualify the targets until the best potential buyer was identified. At that point, SEACAP negotiated a letter of intent with the ultimate purchaser, orchestrated the due diligence process and oversaw the closing activities.
“SEACAP helped us clearly see the benefits to the company and our eventual exit plan by divesting this under-performing division. They were methodical with their analysis, swift with action in finding the buyer, and private throughout the process.”
Michael Hartnett, AFCO Co-founder
Lamination Services, Inc. (LSI)
LSI is a family owned and operated business specializing in ID systems and supplies, promotional products, and wide format printing.
SEACAP services employed:
- Transition of Family Business to Next Generation
- Management Advisory Services
- Business Valuation and Sale
LSI turned to SEACAP for advisory services. The owner was looking to turn the business over to his son, Mason Ezell III, and wanted to make sure the transition was smooth and hassle-free. "When you get into family business, things can get really sticky. Waldrup and his staff worked out
all of the details to make it a very painless process," says Mason Ezell III, president of LSI. "We helped the family set up a Family Limited Partnership; we worked with their attorneys and insurance representatives to make sure the business is passed from one generation to the next as smoothly as possible,” says Waldrup Brown, SEACAP partner and business advisor. Brown also serves as general business advisor for LSL meeting with the staff regularly to review financials and other operational information.
In addition to the advisory services, LSI also used SEACAP to facilitate the sale of a division of the business to another party. Ezell Ill says, "SEACAP took the hassle away from us so we could focus on our other divisions while they sought potential buyers. We discussed a selling price, turned over our financia1s and before you knew it, we had a buyer and a successful sale."
Hall Blake & Associates, Inc.
Hall Blake & Associates is a full-service civil engineering firm specializing in the areas of geotechnical, construction, and environmental services.
SEACAP services employed
- Management Advisory Services
- Debt Restructuring
Facing the challenges that come with supporting business growth, Hall Blake & Associates called on SEACAP to assist with restructuring the company's debt. "SEACAP brought to the table options on cash flow management that I did not know were available to us," says Joe HaIl, a partner in the firm. SEACAP's Waldrup Brown also served as a general business advisor. Knowing the details of the business helped Brown to efficiently restructure the debt based on the current state of the business. Brown says, “We were able to help Joe and his team arrange a debt structure that allowed them to use their cash more quickly, which helped their business grow at a critical time for them."
Allied Blending & Ingredients (Allied)
Allied is a privately-held Iowa based company that formulates, manufactures and distributes an array of value-added blends and ingredient products to food producers, dairy, pharmaceutical and personal-care companies.
SEACAP Services employed:
- Strategy and Infrastructure Development
- Strategic Acquisitions and Joint Ventures
- Exit Planning for the Co-Owners
SEACAP was initially engaged to assist the owners with making a single acquisition. However, initial due diligence revealed a number of organizational and infrastructure adjustments that were needed prior to making any acquisitions. The engagement was modified to direct several restructuring initiatives, staffing changes and the development of a formal business plan. Allied was then poised to pursue an acquisition strategy carefully orchestrated to compliment the company’s organic growth plan. Seven years later, this SEACAP client has tripled in size while the company’s value has increased proportionately.
The Allied engagement continues with a constant focus on acquisition opportunities from a full pipeline of qualified and nurtured targets, but also with a watchful eye toward eventual exit opportunities for the owners.
“SEACAP was instrumental is getting us organized and well positioned before we started the acquisition search. These preliminary steps probably saved us from making the costly mistake of buying a business before we were ready. Once we were ready to go, SEACAP managed the acquisition process in a careful and deliberate way that led us to some very good deals.”
Chuck Carvette, Co-Owner of Allied Blending & Ingredients