Overview of the Transaction
DGP Served as Exclusive Financial Advisor to the PK Companies, an industrial services company offering coatings / fireproofing, tech-enabled inspections and soft-craft services
DGP Capital marketed a majority recapitalization transaction to a select number of financial and strategic acquirers focused on industrial services
DGP’s process resulted in a valuation that was substantially higher than prior, unsolicited offers
Deal Rationale
- PK Companies was a family-owned business that was evolving at a substantial growth rate and as a result, the ownership team wanted a partner that could help support its growth
- The Company has extensive repeat clients across multiple industries with a diversified customer base, making it an attractive target for both strategics and private equity funds focused on the commercial and industrial services sectors
- Ultimately, DC Capital Partners invested in PK at a valuation that exceeded PK’s expectations with PK’s founders reinvesting significant equity as part of the transaction
Key Factors Driving Buyer Interest
Throughout the process, DGP highlighted the following attributes to drive high levels of buyer interest:
- A strong cash-flow generating business tied to non-cyclical, regulatory-driven inspection / integrity and maintenance services
- Diversified customer base in non-cyclical end markets
- Long-tenured management team that is incentivized to grow
- Tech-enabled services offering significant value-add to customers
DGP's Role Throughout The Process
DGP provided PK with a completely bespoke, turnkey sell-side service offering:
- Preparation of all financial models and full set of materials required to market the transaction
- Identification and selection of a tailored list of logical acquirers in the space
- Approaching and screening acquirers and positioning the transaction for optimal interest and valuation
- Negotiating offers and providing the client with hands-on, due diligence support throughout the entire process
To learn more about transaction trends for similar companies or to learn more about what DGP Capital can do for your business, please contact us here.