Residential Security Company

Two very successful entrepreneurs built a company which provides homeowners with replacement windows, doors and siding. The Company has grown by multiples from its size when they acquired it and generates very positive cash flow. The owners posed the question: “Can we establish a platform in another industry which will allow us to leverage the marketing knowledge and resources that we have gained?” The team hired Focus Capital Advisors to advise them on the strategy, help them to focus in on a particular industry, identify acquisition targets and get the deals closed.

After examining a number of industries, Focus and the client decided to target providers of home security systems. Focus conducted a comprehensive target search which resulted in several excellent targets that were not on the market. We introduced the client to these target businesses and helped the targets understand the potential of selling to our client while retaining equity that could allow them to greatly increase value. The two best companies were selected to acquire to form the initial platform. Focus led the way in negotiating both transactions.

When the first negotiation stalled, Focus was able to propose an alternative tax strategy which enabled the parties to bridge the gap and move forward. The acquisitions closed within weeks of each other. One of the two entrepreneurs moved over to become the full-time CEO of the new venture and continues to work with Focus on additional acquisitions.