Case Study: Atchafalaya Measurement, Inc. Management Buyout

Based in Scott, Louisiana, Atchafalaya Measurement, Inc. (AMI) is a rapidly growing multi-basin energy services company that provides customized measurement systems to onshore and offshore drilling operations in many of the fastest growing drilling regions in the United States. Specifically, AMI primarily serves exploration and production (E&P) companies located in the Eagle Ford, Haynesville, Marcellus, and Utica basins, and the Gulf of Mexico – with plans to move into the Permian and Eaglebine basins. In recent years, AMI has exhibited substantial growth as its management team has strategically targeted high-growth regions and developed a reputation as a premier service provider in its industry. Founded in 1982, Atchafalaya Measurement prides itself on providing a high level of customer service.

 The company was founded by industry veterans Craig Ortego and Randy Fontenot. Having been in the industry for over 30 years, Craig and Randy were seeking retirement and desired for the business to continue its legacy in the hands of their top managers, Nick Trahan and Shane Daigle. Capitalizing on the booming oil and gas shale revolution, under Nick and Shane’s leadership the company more than doubled annual revenues while substantially increasing profits during the three year period prior to the transaction. Atchafalaya Measurement desired to pursue a transaction with an experienced financial partner who could deliver growth capital, provide an exit for the company’s founding shareholders (Craig and Randy), and incent the ongoing management team (Nick and Shane) with a significant equity stake in the Company going forward.

The Principals of Founders advised AMI via a thorough assessment of the industry, company, and available capital markets. In the process, a detailed financial model and marketing package were created and distributed to a targeted list of equity sponsors, tailored to meet the stated transaction objectives.

The six month process yielded all of the desired characteristics, including:

  • Significant liquidity at a fair valuation allowing the owners to diversify their wealth and exit the business
  • A meaningful stake of ownership for the ongoing management team, Nick Trahan and Shane Daigle, and providing support and incentives to take the business to the next level
  • Selection of the right partner, KLH Capital, based on their relational approach, along with their ability to provide AMI with growth funding, formalized business processes, and scalable back office support
  • Achievement of a prudent capital structure while maximizing value; finding the optimal balance between debt and equity to meet the objectives of the business and investors

The transaction provides the management team with a value-added partnership committed to continued expansion and growth within the Oil & Gas Services sector.

Founders Investment Banking (Founders) is a merger, acquisition & strategic advisory firm serving middle-market companies. Founders’ focus is on oil and gas, industrials, software, internet, digital media and healthcare companies located nationwide, as well as companies based in the Southeast across a variety of industries. Founders’ skilled professionals, proven expertise and process-based solutions help companies access growth capital, make acquisitions, and/or prepare for and execute liquidity events to achieve specific financial goals. In order to assist Founders Investment Banking with securities related transactions certain Principals are registered investment banking agents of M&A Securities Group, Inc., member FINRA/SiPC. M&A Securities Group and Founders are not affiliated entities. For more information, visit