Success Stories

Southeast Lineman Training Center Sold to Warren Equity Partners


DEAL TYPE: Sell-side transaction

DEAL TEAM: Ralph Montgomery, Andrew Allred, Brian Eischeid, and Andrew Ball

COMPANY OVERVIEW: Southeast Lineman Training Center (“SLTC”) is a market leading vocational training school, providing best-in-class electrical and communication lineworker training programs for the power and telecommunications industries. SLTC received a minority investment from Sovereign’s Capital in 2020 to help increase student capacity and strengthen the operational core of the business. 

SITUATION: SLTC was majority owned by two individuals. For over 20 years, they successfully grew the school through campus expansion, broadened course offerings, rigorous field training, industry validated classroom coursework, and a reputation with industry employers as the premier institution from which to hire lineworkers. FourBridges was engaged by Sovereign’s Capital to sell the business, allowing the two majority owners to begin planning a transition away from day-to-day operations and for Sovereign’s to realize strong returns for its investors.

CHALLENGE: SLTC had a unique combination of strong financial performance, numerous avenues for future growth, sterling brand reputation, excellent culture, and exceptional industry tailwinds. Once the school was taken to market, it became clear that it would be a highly competitive process. FourBridges was tasked with finding and negotiating with a partner that would provide maximum value to the Owners, maintain the strong culture and values of the school, and provide the resources and expertise required to take the school to the next level.

PROCESS: FourBridges analyzed the company’s financial statements, and put together a pro forma financial model highlighting immediate term growth opportunities. A robust Confidential Information Memorandum was also created that told the school’s story and detailed the various growth opportunities for a new investor. FourBridges identified a number of interested parties that included financial buyers with expertise in the education and/or infrastructure sectors, as well as strategic investors. Numerous bids were procured from these groups with valuation multiples well in excess of industry standard for site-based vocational schools.

RESULT: Warren Equity Partners (“WEP”) was identified as the best partner for SLTC. WEP is a private equity firm with numerous investments in power and utilities, infrastructure, and business services. In addition to having numerous industry angles, paying a competitive price, and demonstrating the ability to close the transaction in a timely fashion, WEP also had a strong appreciation for and desire to maintain SLTC’s culture.

For the two majority sellers, the transaction provided liquidity while also retaining a meaningful minority equity investment to participate in the future growth of SLTC. For Sovereign’s, the transaction allowed it to realize an excellent return on investment, return capital to its limited partners, and retain a small minority stake in SLTC. For WEP, SLTC represents a new platform investment that will offer the opportunity for synergies across its portfolio of companies.


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