- Evangeline Securities (“Evangeline”) was engaged by Capitol Imaging, LLC (the “Company”), headquartered in New Orleans, LA, to run a recapitalization process for the largest provider of outpatient diagnostic imaging services (MRI, CT, X-Ray, Mammography, etc.) in the state of Louisiana
- The Company, with 20 locations across the state of Louisiana and Alabama, had a 50+-year history of success with both single- and multi-modality services
- The 100%-owner (the “Owner”) of the Company requested a robust auction process to recapitalize while allowing the Owner to partake in potentially exponential future growth
Background
- Evangeline Securities (“Evangeline”) was engaged by the Industrial Solutions Group, LLC, headquartered in Lafayette, LA, to run an auction process for an outright sale of its oilfield service software division known as the OQSG/Pinion (“Pinion” or the “Company”)
- The Company, with an 18-year track record of success, focused primarily on SaaS training and compliance testing for the energy industry, and was owned by local businessmen (“Management”) who wished to deploy the sale proceeds into a different strategic area
- Although consistently cash flow positive, Pinion had not been a core focus of Management, and suffered from limited investment and growth
Process
- After performing a full valuation analysis for the Company, Evangeline launched a robust auction process, personally contacting over 250 strategic and institutional players with 90 NDA’s signed
- The auction process proved extremely successful, leading to nearly 20 term sheets from investors around the country, thus allowing the Company to demand an optimal valuation and an all-cash offer
Result
- In August 2018, Pinion was sold to Levine Leichtman Capital Partners, a Beverly Hills, CA-based private equity firm, who wished to bolt the business onto its existing platform business, Smith System, which focuses on driver safety training across multiple industries
- Management was extremely pleased with the auction result as the valuation achieved precisely matched the range projected in Evangeline’s initial analysis
Background
- Evangeline Securities (“Evangeline”) and Whitehawk Advisory (“Whitehawk”) were engaged by iLandman (“iLM”), an industry leading cloud-based land management software, to identify potential acquirers that could pay a premium valuation
- iLandMan developed their software through years of experience operating oil and gas production and land broker companies. The software was built to address the needs they encountered as operators of a small E&P company
- iLandMan is a SaaS-based, real-time tract- and formation-based software that provides complete access to all company projects, along with maps and reports that both increase efficiency and eliminate wasteful duplication of effort
Process
- After performing a full valuation analysis for iLandMan, Evangeline and Whitehawk targeted a select group of strategic competitors in the land management software space
- The auction process proved extremely successful, leading to multiple term sheets from competitors in the industry, thus allowing iLM to garner a premium valuation despite its smaller size and customer base
Result
- In May 2018, P2 Energy Solutions successfully completed the acquisition of iL
- Per the deal announcement, iLM President Tim Supple remarked “iLandMan brings a deep set of capabilities that complements P2’s production, accounting, data, and land management offerings. We look forward to continuing our track record of innovation and customer success as part of P2”
Background
- Evangeline Securities (“Evangeline”) was engaged by Ducky Johnson Home Elevations (“Ducky Johnson”), an industry leader in home elevation headquartered in Harahan, LA, to identify institutional growth capital providers
- Ducky Johnson grew to prominence through its exemplary home elevation work in New Jersey and New York after Superstorm Sandy devastated much of the tri-state area, and management wanted to expand into other states in need of its disaster recovery services
- As a family-owned business for multiple generations, management was new to the institutional capital market, but sought a committed partner to prudently grow the business, enhance internal infrastructure and operations and develop a feasible long-term growth strategy
Process
- After performing a full valuation analysis for Ducky Johnson, Evangeline launched a robust auction process, personally contacting over 200 institutional players
- The auction process proved extremely successful, leading to multiple term sheets from investors around the country, thus allowing Ducky Johnson to demand an optimal valuation despite investor concerns over recurring revenue and sustainability of growth
Result
- In January 2018, Ducky Johnson successfully closed a minority growth equity investment from Sachs Capital, out of Potomac, MD, at the high end of an impressive valuation range
- Per the deal announcement, Ducky Johnson Co-Founder Daniel McKearan stated “Evangeline’s extraordinary diligence and financial expertise were critical in the successful completion of this transaction, and we are very pleased to actively grow our business with such a valuable partner like Sachs Capital”
KnowledgeVine Sale to Alliant
Background
- Evangeline Securities (“Evangeline”) was engaged by KnowledgeVine, LLC (the “Company”), headquartered in Zachary, LA, to run an auction process for a majority stake sale of a leading provider of software-based training and assessment services for companies seeking workforce error reduction through Human Performance Improvement (HPI) technologies
- The Company, founded in 2014, offers on-site risk mitigation coaching complemented by online training services to significantly reduce workplace incidents
- The CEO and CFO (the “Owners”) of the Company requested a robust auction process to sell a majority stake to a strategic partner, specifically in the insurance sector, while retaining a material minority stake in the business, allowing the Owners to partake in considerable upside
Process
- After performing a full valuation analysis for the Company, Evangeline launched a robust auction process, personally contacting over 300 strategic and institutional players with ~150 NDA’s signed
- The auction process proved extremely successful, leading to multiple term sheets from investors around the country and a partnership that will both transform the insurance industry and position the Owners for exceptional growth
Result
- The Company was proud to consummate the transaction with one of the nation’s largest specialty insurance brokerages, Alliant Insurance Services
- Per Founder/CEO David W. Bowman, “Evangeline’s extraordinary financial advisory services were invaluable in the successful consummation of this revolutionary transaction, which will serve as a paradigm shift for the insurance industry writ large. We are beyond enthused to partner with the innovative leadership team at Alliant in our mutual effort to quite literally change the world”
Axis Sale to ValorBridge
Background
- Evangeline Securities (“Evangeline”) was engaged by Axis Compressor Services, LLC (“Axis” or the “Company”) in June 2022 to run an auction process for a majority sale
- The New Iberia, LA, based Company is a leading provider of generator rental, mechanical, and electrical services on rotating equipment in the on-shore and off-shore Gulf of Mexico energy industry
- Evangeline and Axis built a long-term relationship dating back to 2016 that culminated in the sale of the Company to ValorBridge Partners in December 2022
- Evangeline provided Axis realistic expectations and suggestions to enhance valuation over the six-year relationship to collectively enter the market at a strategically advantageous time
Process
- Evangeline launched the sale process in June 2022 in a very challenging market for energy service companies in which bank financing proved extremely difficult to attain
- Despite the market headwinds, Evangeline’s efforts generated multiple offers in excess of the expected valuation range
Result
- Evangeline led the Company to a successful sale in December 2022, less than six months from the date of engagement
- ValorBridge Partners brought growth capital as well as abundant experience to facilitate the continued growth of the Company that was not feasible for the legacy owners’ risk profile
- Axis was extremely pleased with the auction result as Evangeline successfully advised the Company to reach the diverse goals of all three owners that included an immediate, structured exit and a meaningful participation in future upside growth
Gauge House Sale to Marigny
Background
- Evangeline Securities (“Evangeline”) was engaged by The Gauge House, LLC (the “Company”) on August 19, 2021to run an auction process for a majority recapitalization
- The Company is a value-added distributor of measurement and instrumentation equipment to the energy, agricultural, transmission, manufacturing, industrial and related industries, with locations in Lafayette and Houma, LA
- The Company was recovering from lower cash flow in 2020 due to COVID-19 and reduced activity across their customer base, primarily in the oil and gas industry
- 100%-owner (the “Owner”) of the Company requested a full auction process and a year-end 2021 close because of the potential capital gains tax policy changes in 2022
Process
- Evangeline launched a robust auction process on September 8, 2021, personally contacting over 200 strategic and institutional investors resulting in ~50 signed NDAs
- The auction process proved extremely successful, leading to multiple offers in the expected valuation range and a signed LOI on October 24, 2021
- Evangeline managed the 60-day exclusivity period to a successful closing on December 23, 2021
Result
- Evangeline successfully closed the transaction in 4 months and 4 days from engagement, in an extremely demanding transactional market due to a huge push for year-end closings across industries
- Owner is extremely pleased with the auction result as Evangeline advised the Company through the abbreviated timeline and found the right partner to purchase a majority stake and lead the Company to future growth with a reduced risk profile for the Owner
BlueFin Sale to GATE
Background
- Evangeline Securities (“Evangeline”) was engaged by BlueFin Services, LLC (“BlueFin”), a leading pipeline, mechanical and production optimization service provider headquartered in Broussard, LA, to pursue a sale of the business through a fully marketed auction process
- BlueFin co-founder, Michael “Micky” Pugh was retiring and wanted to exit the business while leaving management duties to his son David “Ducky” Pugh and son-in-law Bryan Lipari, already owners
- In addition, BlueFin wanted to concurrently spin-off its rental division into an independent entity owned by an additional co-founder, adding substantial complexity to the transaction
- The continued downturn in the oil and gas market also raised considerable valuation concerns for management
Process
- After performing a full valuation analysis for BlueFin, Evangeline launched a robust auction process, personally contacting over 100 institutional and strategic players
- The auction process proved extremely successful, leading to multiple term sheets from investors around the country and thus allowing BlueFin to demand an optimal valuation despite extremely challenging market conditions
Result
- On August 10, 2016, BlueFin successfully spun off its rental division and sold 100% of its business to GATE Energy, Inc. (“GATE”), a leading engineering solutions supplier to the oil and gas industry based out of Houston, TX, at the high end of an impressive valuation range
- Per the deal announcement, BlueFin CEO Ducky Pugh stated “Evangeline’s extraordinary work ethic and expertise were critical in the successful completion of this intensely complex transaction, particularly in such a challenging oil price environment”
Case Study: Longbranch Sale to Abacus
Background
- Evangeline Securities (“Evangeline”) was engaged by Longbranch Retreat and Recovery Center, LLC (the “Company”), headquartered in Metairie, LA, to run an auction process for a majority stake sale of a leading provider of addiction treatment services
- The Company, founded in 2017, offers individualized treatment to both men and women through a variety of evidence-based modalities and trauma-intensive therapies for long-term sobriety
- The primary shareholders (the “Owners”), including the Chairman of the Company, requested a robust auction process to sell a majority stake to a private equity group with specific experience in the addiction treatment space, while retaining a material minority stake
Process
- After performing a full valuation analysis for the Company, Evangeline launched a robust auction process, personally contacting over 200 institutional players with approximately100 NDA’s signed
- The auction process proved extremely successful, leading to multiple offers from institutional investors all over the country despite the Company’s relatively limited operating history, geographic focus and customer concentration
Result
- The Company was excited to partner with Abacus Investments (“Abacus”) out of Birmingham, AL, particularly due to Abacus’ significant experience in the addiction treatment and recovery industry
- Per Chairman Christopher D. McMahon, Evangeline’s “exceptional financial advisory services were critical to the successful closing of this exciting transaction, which will allow Longbranch, in partnership with Abacus, to expand our multi-faceted treatments into new regions”