Deal type: Sell-side transaction
Deal team: Ralph Montgomery, Andy Stockett
Company Overview: Total Building Supplies (TBS) is a premier building products distributor serving the Southeast from locations in Atlanta, Ga., and Jacksonville, FL.. The company provides value-added commercial construction and demolition services, and it supplies building products, tools and equipment to multi-unit developers and contractors.
Situation: TBS was founded by two co-owners. For 15 years, they successfully grew the company, weathering a recession, consolidation trends and substantial shifts in their industry and end markets. They had reached a crossroads: one owner was ready to retire, while the other owner wished to continue expanding the business.They initially contacted Raymond James financial advisor Steve Kaasbell through a referral from one of his existing clients. Steve then contacted RJ Investment Banking, and given the size of the company, they were introduced to FourBridges.
Challenge: Previously, TBS had engaged another investment banking firm to sell the company. That engagement was unsuccessful, so as they initiated the selling process for a second time, the co-owners shared some reservations. Additionally, they did not have a full-time CFO, so the company’s financial reporting needed to be addressed.
Process: FourBridges analyzed the company’s financial statements, developed a forecast and compiled a Confidential Information Memorandum that told the company’s story to potential partners. The firm contacted a diverse range of private equity groups, family offices and strategic investors.
Result: Ultimately, Ram Tool Construction Supply was identified as the best partner for TBS. One of Alabama's largest privately owned businesses, Ram Tool provides provides job site products and services to commercial contractors across 12 states.
The transaction allowed Ram Tool to expand its geographic footprint and more heavily target the multi-family housing market, while enabling TBS’s executive team to achieve their personal and financial objectives.
In addition, Kaasbell retained the owners as wealth management clients, helping them invest the proceeds from the sale.