Exit Strategies Group Advises Axis on Sale to Motion Industries

BOSTON, MA (March 1, 2019) – Transaction advisory firm Exit Strategies Group served as exclusive M&A advisor to Axis of New England and New York on its successful sale to Motion Industries, Inc., a subsidiary of Genuine Parts Company (NYSE: GPC).

Axis, with facilities in Danvers Massachusetts and Rochester New York, is a leading provider of advanced industrial automation products and engineered systems, specializing in robotics, motion controls, machine vision, sensors and IIOT technologies. Axis helps clients in many industries automate their products and processes. It is an authorized distributor for many premier automation brands. Value-added assembly and custom-engineered mixed-technology systems feature prominently in the company’s value proposition. Founded in 1994 by Todd Clark, Axis has grown to become the market leader in New England and New York. It is one of the largest independent automation technology providers in the U.S.  Industries served by Axis include life sciences, pharmaceutical and biotech, medical, semiconductor, electronics, food and beverage, warehouse automation, packaging, machine tools, 3D printing and robotics.

Axis CEO Todd Clark said, “We’re pleased to be part of the Motion family. Their relationships, systems and financial resources will to allow us to expand our technical sales force and systems engineering and manufacturing capabilities more rapidly in the coming years. Selling to the right buyer was important to us. We are proud of the culture of excellence that we created at Axis and believe that Motion will allow us to continue that legacy and provide a great place for our employees to work and advance their careers.”

“Exit Strategies did a tremendous job guiding us through the process. Their automation industry knowledge, competitive bid process and creative deal making were essential in achieving a successful outcome”, Mr. Clark observed.

We are pleased to have advised Axis on the sale process and to have helped them achieve a great outcome. The acquisition by Motion represents a win for Axis’ shareholders, employees, customers and vendors. And Motion acquires one of the most respected and capable automation solution providers in the U.S.

We expect U.S. companies to continue to increase investments in automation and robotics to compete on the global stage and to improve productivity and profits. Trends driving industrial automation include the shortage of skilled labor and rising labor costs, increasing mass-personalization of consumer goods, growing internet connectivity, product miniaturization and the increased use of electronics in products, and the adoption of new enabling technologies such as AI. As a result, we expect the industrial automation technology mergers and acquisitions market to remain strong for a while.

About Motion Industries

Motion Industries, Inc., headquartered in Birmingham, Alabama, is an industrial distributor with annual sales of $4.9 billion. Its products include mechanical power transmission, electrical and industrial automation, hydraulics and pneumatics. It also provides systems design, fabrication and repair services. This is Motion’s third acquisition of an advanced automation solutions provider.

About Exit Strategies

Exit Strategies Group is a California-based merger and acquisition advisory and business valuation firm serving lower middle market companies in a variety of industries.  For further information about this acquisition or automation investment banking or M&A advisory services, contact Al Statz, 707-781-8580.  Terms of the Axis-Motion deal will not be disclosed.

Ken McCauley Joins Exit Strategies as Senior Valuation Analyst

Exit Strategies Group is pleased to announce that Ken McCauley, CPA, ABV, has joined us a Senior Business Appraiser in our North San Francisco Bay Area California office. Ken will provide a broad range of business valuation services for our clients. He has been appraising businesses since 2010, including wineries, medical and professional services, software, retail, restaurants, manufacturing, construction, and businesses in other sectors.

Prior to joining Exit Strategies, Ken was a partner in AL Nella & Company, LLP Certified Public Accountants in San Francisco California, where he specialized in financial reporting, business valuation services and cash flow analysis for small to medium sized companies. Ken and his partner sold the firm in 2018. Ken’s background includes financial audit experience with a national public accounting firm and multiple corporate finance positions.

Ken holds the Accredited in Business Valuation (ABV) credential and is a licensed CPA. He graduated from the University of Michigan with a BA in Accounting. He has served on the boards of several nonprofit organizations over the years and is currently active on the Stewardship Team at the Center for Spiritual Living.

We’ve known Ken for many years as a client and referral partner. He brings unique talents, knowledge and experience to the ESGI team, and he is great to work with. We are happy to have him help us meet the growing need for professional business valuation and succession planning services.

Contact Ken McCauley at kenm@exitstrategiesgroup.com or 707-823-8440.

Get LinkedIn with Ken.

Exit Strategies Advises on Management Buyout of Carpenter Crane Hoist

MARE ISLAND, California – Exit Strategies is pleased to have recently served as financial acquisition advisor in management’s carve-out of the Carpenter Crane Hoist division from The Carpenter Group (TCG). The buy-out (MBO) was led by executives Dane Oliver and Ben Jones with the support of an equity partner. The acquisition marks the beginning of an exciting era for Carpenter Crane Hoist (CCH) as management implements plans to expand offerings and operations to address the needs of a growing specialty crane market.

Since its forming in 1996 as the seventh division of The Carpenter Group, CCH has designed and produced overhead cranes for clean rooms and harsh environments. CCH uses proprietary components and materials and customizes every system to satisfy the unique application requirements of its clients. Electronic controls and custom holding fixtures are typical. CCH produces cranes to 25-ton capacity for up to class 10 clean room environments for top semiconductor companies and research facilities across the U.S. For more information see www.carpentercranehoist.com.

The Carpenter Group, with six locations, distributes rigging products to OEMs and end users throughout California and the West Coast in the construction and marine industries and other sectors. The carve-out of CCH made sense for TCG because the business unit was not core to its overall strategy.  See www.carpenterrigging.com for more information.

How Exit Strategies Helped

Management contacted us on the advice of their attorney to determine if a buyout was feasible and to help put the deal on track. Exit Strategies’ role consisted of sizing up the situation, advising management on process and strategy with respect to the proposed carve-out, analyzing historical financials and helping develop projections, valuation calculations, finding a lender to preapprove financing, pitching the spin-off to The Carpenter Group, and working with management’s attorney to negotiate a favorable letter of intent. Umpqua Bank supported the deal with senior term debt. Deal terms are confidential.

About Us

Exit Strategies Group is a California-based M&A brokerage and business valuation firm. Founded in 2002, we mostly serve sellers in lower middle-market  transactions, representing them from start to finish. Our seasoned brokers and advisors have over 100 years of combined deal making experience spanning many industries.  In this instance we are very pleased to have facilitated a successful management buyout and spin-off that benefited all stakeholders.

To find out how Exit Strategies can help you complete a successful business sale, spin-off, merger or acquisition, contact President Al Statz at 707-781-8580, alstatz@exitstrategiesgroup.com.

August 21st Seminar: How and When to Exit Your Business for Maximum Value

Are you considering retirement or exiting ownership and wondering if you’re going about it the best way? Will your business sell for maximum value? Please join us for an exclusive, limited-seating breakfast seminar in Roseville on Tuesday August 21, 2018 for business owners contemplating their exit. Learn the ins and outs of successful exit strategies and how to maximize value when you sell. This free, educational seminar is sponsored by Exit Strategies Group and Exchange Bank, a local community bank serving northern California since 1890.

You’ve spent years creating value in your business and you deserve to make a full-value exit on your terms and time frame. You’ve heard about hugely successful deals and horror stories of deals gone wrong. But what separates them? Not just luck.

What is the value of your business today? Is that enough to retire or fund my next endeavor? Is the timing right to maximize value? What are my exit options and how do I select the right option? What should I be doing to prepare for an exit? How far in the future should I plan? What can I do to make my company more attractive to buyers? How can I position it to attract strategic buyers? How do I present my financials properly? How do I avoid financing a sale? How do I get more value for all my years of hard work and ensure a successful sale when I’m ready to sell?

If you’ve asked yourself any of these questions, this seminar is for you. This fast-paced 2-1/2 hour live session will provide practical answers regarding:

1) How companies are valued and what factors influence the price buyers pay
2) How to prepare yourself and your company for a better sale outcome
3) The current state of the market for business sales
4) Pros and cons of different types of buyers for your company
5) Steps and important tools in an M&A sale process, and mistakes to avoid
6) How experienced professionals level the playing field with sophisticated buyers
7) The criteria banks will use to qualify your business for buyer financing
8) How to maximize proceeds and reduce financial risk in a sale

SEMINAR DETAILS

• Date: Tuesday, August 21, 2018
• Time: 7:30am – 10:00am (check-in and continental breakfast start at 7:00am)
• Location: Exchange Bank, 1420 Rocky Ridge Dr. Suite 190, Roseville, CA 95661
• Presenters: Senior advisors from Exit Strategies Group and Exchange Bank
RSVP Required:  CLICK HERE TO REGISTER ONLINE  Or, contact Mike Lyman at 916-476-2611 or mlyman@exitstrategiesgroup.com. We will call you to confirm your reservation. For privacy, we allow only one company per business type. Register early. The seminar is free and seating is limited.

We hope to see you on August 21st. If you cannot attend but would like to be notified of future seminar dates, receive our monthly newsletter, or discuss a business sale or valuation need, please contact Mike Lyman at 916-476-2611 or mlyman@exitstrategiesgroup.com.

About the Sponsors:

Founded in 2002, Exit Strategies Group, Inc. is a full-service Northern California-based merger and acquisition brokerage firm serving $1-50 million revenue company owners.  Exit Strategies also appraises businesses for MBO, buy-sell transactions, ESOP, estate and gift tax, litigation support and other uses.  With 12 seasoned professionals and 4 California offices, Exit Strategies combines the expertise and resources of a large firm with the close senior-level attention of a boutique M&A practice.

Founded in 1890, Exchange Bank consists of 18 branches.  Exchange Bank is an SBA PLP lender with decades of experience.  Dedicated SBA M&A lending professionals committed to outstanding customer service and fast turnaround.

 

Exit Strategies Advises on Sale of Valley Inventory Services, California’s Leading Inventory Services Provider

Exit Strategies Group acted as exclusive advisor to Valley Inventory Service, Inc. on its recent sale to private investors. Terms of sale will not be disclosed.

Founded in 1972, VIS is the leading regional physical inventory service provider in California. VIS serves supermarkets, retail stores, pharmacies, distribution centers, wineries and manufacturers in the Western U.S. Using state of the art data collection hardware and software, VIS tailors its services to meet the timing and reporting requirements of clients. Valley’s service philosophy is centered around timeliness, accuracy and professionalism. The new owners intend to build on that tradition of quality service and expand into new markets.

“After we interviewed other brokerage firms, our attorney recommended Al Statz at Exit Strategies. We selected Exit Strategies because of the thoughtful advice they gave us before we hired them, the professional way they present businesses, their approach to identifying buyers, and their reputation for providing great service. I am pleased with the ultimate outcome achieved through their rigorous process, extensive knowledge and attentiveness,” said VIS CEO Jeff Link.

Established B2B service companies like VIS with competitive service offerings, proven systems and capable staff, strong reputations and  growth prospects are getting lots of attention from strategic and financial buyers in this market. We are pleased to have been able to advise on this successful business ownership transfer.

Exit Strategies Group is a California-based mergers and acquisitions brokerage and business valuation firm. Founded in 2002, the firm advises sellers and buyers in lower middle-market M&A transactions. Senior advisors at Exit Strategies have over 100 years of combined transaction experience across a variety of industries.

For more information or help completing a business sale, acquisition or merger, contact Al Statz, President, at 707-781-8580, alstatz@exitstrategiesgroup.com.

May 10th Seminar: How to maximize the value of your business upon exit.

Are you starting to think about retirement, but don’t know how best to transition out of your business? Consider attending a free breakfast seminar hosted by Exit Strategies Group and Exchange Bank on how to maximize the value of your business upon exit.

  1. This 1-1/2 hour seminar will answer the following questions:
  2. What are the value drivers that determine how much my company is worth?
  3. What can I do to prepare my company for sale? What should I not do?
  4. What are the steps in the sales process?
  5. What is the current state of the business sales market?
  6. What criteria does a bank use to qualify my business for a bank loan?
  7. How do I maximize the proceeds from the sale of my business?

The Details

May 10th, 2018 7:30 am to 9:00 am in Santa Rosa. A continental breakfast will be provided.

Space is limited.  For your privacy, only one company per industry will be allowed to attend. To reserve a spot, RSVP to Adam Wiskind, awiskind@exitstrategiesgroup.com or call (707) 781-8744.

About the Sponsors

Exchange Bank was the #1 Community Bank SBA Lender in Sonoma County in 2017, and is a Preferred SBA Lender and a Top Ranked SBA Lender in the San Francisco District/Greater Bay Area.

Exit Strategies Group is a full-service mergers and acquisition brokerage firm serving private companies with $1-50 million in revenue. Exit Strategies also offers expert business valuation services for many reasons including exit planning, buy-sell agreements and litigation opinions.

If you are unable to attend but would like information on maximizing the value of your business, please contact Adam.

2018 Sonoma County Backroad Challenge Cycling Event/Fundraiser

Like you, ESGI’s advisors are invested in the communities in which they live and work. Exit Strategies is proud to once again sponsor the annual Sonoma County Backroad Challenge, a one-day cycling event full of spectacular scenery, fun and excitement where riders of all levels from across the United States converge to raise funds for worthy humanitarian projects, both local and international.

The annual Sonoma County Backroad Challenge is a fundraising project of the The Petaluma Sunrise Foundation, a 501(c)(3) non-profit established by the Rotary Club of Petaluma Sunrise.

If you are a cyclist and enjoy supported century, metric century, and half-metric century rides, the 2018 Sonoma County Backroad Challenge is one of the most scenic and enjoyable rides you will find anywhere.

Please come join us on Saturday May 19, 2018. CLICK HERE for details, to register for the ride, or simply to make a donation.

We welcome our clients, future clients, professional advisor colleagues and referral partners to help us give back by participating in our sponsored charitable events and we try to do the same for them. If you have any questions about the Backroad Challenge or Rotary, you can reach Al Statz at 707-781-8580.

Exit Strategies Advises RST in Strategic Sale to Subsite Electronics

Exit Strategies Group, Inc. (ESGI) is pleased to announce the acquisition of its client, robotic inspection equipment manufacturer RS Technical Services, Inc. (RST), by Subsite Electronics, a Charles Machine Works company. Exit Strategies served as exclusive M&A advisor to RST.

Acquired by:

Since 1984, R.S. Technical Services, Inc. (rstechserv.com) has been a leader in the design and manufacture of robotic video inspection equipment used to monitor and repair municipal water and wastewater collection and conveyance systems, mainly pipelines too small to allow man entry. Its systems are designed around a unique technology that incorporates all power and control functions into a single conductor, making its equipment more reliable and safer to use than competing solutions. RST has facilities in Kentucky and California.

Subsite Electronics (subsite.com), a Charles Machine Works company, manufacturers utility locators and horizontal directional drilling (HDD) guidance systems. The RST acquisition adds proven remote video inspection capabilities to Subsite’s line of underground awareness solutions. Employee-owned Charles Machine Works, founded in 1902 in Perry, Oklahoma, has several brands and divisions, and is perhaps best known for its Ditch Witch brand of HDD and trenching equipment. For more information visit charlesmachine.works.

Al Statz, President of Exit Strategies, who led the transaction, stated “We are proud to have represented the owners of RST in this successful sale to Subsite. Our team identified, profiled and had preliminary talks with over 100 target buyers, both strategic and private equity, and qualified 6 finalists. Subsite was selected not only on economic terms, but also because they demonstrated a strong culture of customer care, innovation, integrity and commitment to employees that was important our clients.”

For advice and representation in the valuation, sale, merger or acquisition of your company, contact Al Statz at 707-781-8580 for a free confidential consultation. Financial terms of the RST-Subsite transaction will not be disclosed.

About Exit Strategies

Exit Strategies Group, Inc. (ESGI) is a California-based M&A brokerage and business valuation firm focused on producing exceptional exits for closely-held and family owned lower middle-market companies. ESGI brings M&A experience, process management and close attention to detail to help companies sell, merge, recapitalize and acquire businesses successfully. Our advisors have sold companies in a variety of industries including sophisticated technology design, manufacturing, distribution and value-added services.

Exit Strategies helps ProtoFab Expand its Prototyping Capabilities in the Northern California Machining Services Market

Exit Strategies recently advised on the merger of two closely-held Northern California precision machining companies.

Founded in 1996 by Grant Kerr, GMAN Precision LLC is a full-service precision machine shop specializing in complex machined parts and services for R&D, prototyping, and preliminary production work. Its markets include aerospace & defense, biotech, electronics, energy, food processing equipment, medical device, and others. ProtoFab, Inc., based in Petaluma, California, is an ISO9001:2008 certified Northern California manufacturer of precision-machined components for low and high volume production. Major industries served by Protofab are medical, automotive, commercial and test and measurement.

Acquired by

Operationally, adding G-Man’s superb R&D prototyping expertise to Protofab’s world-class production capabilities will deliver even greater value to customers.  The move will give customers single-point machining services for the entire life cycle of their products; from initial R&D, through product launch, production and end-of-life. Culturally the companies share a strong commitment to quality and continuous improvement, and to their clients’ success. This is a smart combination that, combined with disciplined execution of a well thought out integration plan, will accelerate the combined entity’s growth in the Northern California market. Exit Strategies is pleased to have advised on this strategic merger. Terms of the deal will not be disclosed.

This transaction is another example of Exit Strategies’ M&A experience in the California manufacturing sector. We have appraised, sold and merged numerous contract manufacturers representing a broad swath of manufacturing disciplines and vertical markets. If you own a food, wood products, electronics, machining, fabrication, molding, finishing, or manufacturing services business of any kind, and you are looking to sell, merge or acquire a company, we are interested in hearing from you.

Contact ESGI’s president Al Statz at 707-781-8580 or alstatz@exitstrategiesgroup.com.

Exit Strategies Advises IRR San Francisco-Sacramento on its Sale to BBG

Exit Strategies, a California based mergers and acquisitions (M&A) brokerage and business valuation firm, recently advised the owners of Integra Realty Resources of San Francisco and Sacramento on the sale of their Northern California commercial real estate valuation company to BBG, Inc.

BBG ranks among the largest real estate valuation and assessment firms in the United States. With this acquisition, BBG will have 22 offices across the U.S. and a workforce of 262 employees.

of San Francisco and Sacramento

Sold to

Terms of the acquisition will not be disclosed.

This sale is another example of Exit Strategies’ M&A brokerage experience and valuation expertise in the business-to-business services sector. Exit Strategies has appraised and brokered hundreds of service businesses including medical, professional, software as a service (SaaS), real estate, maintenance and repair, test and inspection, construction, and many other types of service businesses. If you own a service business of any kind, and are looking to sell, merge or acquire, we would be interested in hearing from you. Al Statz can be reached at 707-781-8580 or alstatz@exitstrategiesgroup.com.