The Selling Company: Fort Wayne Roofing Inc. (FWR), based in Fort Wayne Indiana, is a 29-year old professional roofing and sheet metal organization servicing clients in Fort Wayne, Indianapolis, and South Bend. The firm is a full-service commercial low and steep roofing and sheet metal contractor, offering roofing design, fabrication and installation for all forms of roofing for commercial construction.
Why the company was sold: The sole shareholder wanted to put an exit plan in place for his eventual retirement.
Capital Alliance’s Performance: As a result of Capital Alliance Corporation’s strong industry experience, CAC was given the opportunity to represent the company in the planning and sale process. We prepared a high-quality Confidential Information Memorandum (CIM) and ran a targeted and formal process that produced multiple written indications of interest. Three large industry acquirers emerged with offers and CAC negotiated improvements to those offers and presented them to the shareholder for his review. CAC’s industry and transaction knowledge enabled them to recommend the best fit buyer.
Terms of the Transaction: The selling shareholder received an industry leading 80% in cash at closing, and the opportunity to generate a significant increase in funds received based on a very lucrative future earn-out calculation.
The Acquiring Company: Tecta America is a very large roofing company with annual revenue of close to $1 billion. They have a strong desire to expand throughout the U.S. and found the quality of services provided by FWR, as well as FWR’s experienced employees and earnings quality, desirable enough to warrant a significant valuation.