Western Emulsions
About the Company
To most investment banks, brokering the sale of Western Emulsions, Inc., a majority family-owned and operated provider of asphalt emulsion products, would seem like a straightforward transaction. The company had enjoyed nearly 30 years of steady growth developing asphalt products and highly technical application services for pavement rejuvenation and resurfacing. It had proprietary technology, a talented and motivated workforce, solid profits and stable cash flows.
Situation Overview
Western Emulsion’s track record of success had created tremendous value. The challenge: the company’s founder and minority investors wanted to sell their holdings, while the son, who also was president, wanted to retain a significant ownership stake, operational control and grow the business backed by new capital.
The Quarton Group Difference
Quarton Partner co-founder Robert Parker recognized that meeting the needs of the selling shareholders would require not just robust financial analysis and flawless execution, but also a significant investment in relationship building. To be truly successful, Quarton needed to identify an investor who strongly believed in the company’s growth story and had good chemistry with management.”
The Result
Tapping into an extensive network of private equity relationships, Parker and his team were able to identify and attract three potential investors to the table. All of them were intrigued by profit potential of the company’s municipal budget- and environmentally-friendly product offerings, and each was willing to work with the existing team to grow the company.
Through a series of formal and informal meetings arranged by Parker, relationships were built that ultimately narrowed the field to one firm and led to a speedy and smooth sale and recapitalization.
Any one of the interested buyers could have helped Western Emulsion achieve its objectives but the successful firm offered relationship-driven synergies that can’t be valued using traditional methods. Since the sale closed, Western Emulsion has thrived. It has made strategic investments in capacity, increased it market share and is well positioned for the future.
