Overview of the Transaction
- DGP Served as Exclusive Financial Advisor to Highland Commercial Roofing, a roofing and building envelope contractor serving industrial and commercial customers
- DGP’s process resulted in a valuation that was 50% higher than prior unsolicited offers
- Acquired by HCI Equity, a private equity firm with a track record in commercial services investments
Deal Rationale
- Highland’s ownership team was interested in an ownership transition and a capital partner to continue its brand presence and 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
- HCI Equity, a private equity firm with a strong track record in commercial and industrial services, was the winning bidder in a highly competitive process
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, non-discretionary building maintenance spending
- Diversified customer base in non-cyclical end markets
- Long-tenured, sales-driven management team that is incentivized to grow
- Repeat customer base with significant backlog
DGP's Role Throughout The Process
DGP provided Highland 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.