The Selling Company: Panhandle Oilfield Service Companies, Inc.
Why the company was sold: Customers were clamoring for the company to continue to grow and add services. The shareholders wanted to grow the company as well, but did not want to continue to personally guarantee the debt. They felt that, with additional strategic management oversight and outside capital, the company could grow much more quickly. The buyers were able to provide both, along with management incentives and upside potential for the selling shareholders.
Capital Alliance’s Performance: Over sixty potential buyers signed confidentiality agreements and received briefings on the company. Five indications of interest with valuations were received. Two of the five buyers made several rounds of follow-on offers. Due to alignment in management philosophy and relationship development efforts by the buyer, the shareholders elected to pursue the Argosy/Akoya Capital partnership.
Terms of the Transaction: Significant cash plus earn-out for a majority position, with management retaining a meaningful ownership stake going forward.
The Acquiring Company: Argosy Capital and Akoya Capital are large, middle market, private equity companies with a focus on environmental and energy service companies. The buyers will participate in the governance of the company at the Board of Directors level.
