The Selling Company: Interstate Plumbing & Air Conditioning, LLC, with revenues in the $100 million range, is the largest nonunion, residential and commercial plumbing and HVAC contractor in Nevada. Based in Las Vegas, the company has a diversified customer base, including the major high-end residential and commercial developers operating in Nevada.
Why the company was sold: The shareholders built the company from startup to its present size over a twenty-year period. Led by the majority owner, the shareholders elected to reduce their risk concentration while continuing to grow the business. The shareholders who are active in the business desired a transaction that would equip the company with the resources to grow to a level of substantially higher revenue and earnings.
Capital Alliance’s Performance: In the words of the selling shareholders, Capital Alliance provided “flawless representation…exciting written materials…multiple prospective acquirers…assertive and constant defense of our interests…superb negotiation skills…value beyond expected levels.”
Terms of the Transaction: The transaction exceeded the target price of the shareholders by over 20%, and included 70% cash at closing, notes bearing an attractive interest rate, rollover reinvestment in NEWCO and an extended contingent payment program based on the company’s future performance.
The Acquiring Company: Sorenson Capital Partners, an affiliate of West Rim Capital, LLC, has made 14 investments in a wide variety of industries in the past two years, including construction companies, and has almost $1 billion of revenue under management.