Phoenix IB® serves as investment banker and successfully sells an industrial refractory contractor to a strategic buyer.
Phoenix’s client was the largest Industrial Refractory Contractor on the East Coast. Founded in 1993, the Company expanded from one office located in New Jersey, to several strategically centered locations across the United States delivering solutions for its customers in the areas of refractory/brick installations, fireproofing, stud-welding, secondary containments, concrete restorations, civil, specialty coatings, sandblasting, epoxy injections, pressure grouting, building restorations and general building maintenance.
The Company’s 10 year run of strong year-over-year growth stalled as a result of a multi-million dollar receivable dispute. As a result of this working capital loss, the Company experienced a 10% decline in net sales and, with the help of Phoenix Management, restructured operations and returned to profitability. A refocus on operations put the Company back on track to grow sales once again, but continued capital constraints and a tired lending relationship lead the Company to explore strategic alternatives.
The Company engaged Phoenix IB® as exclusive investment banker to explore the sale of the Company. Phoenix IB® designed a two stage process to maximize value and simultaneously insulated the Company from competitive threats. Phoenix IB® delivered numerous Letters of Intent to the Company and ultimately selected a strategic buyer of the Company.
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