Applied Ultrasonics designs, manufactures, and sells equipment for extending the life of metal structures and components. The company’s products and services provide a solution to the metal improvement industry that protects vital investments in heavy equipment and infrastructure. Applied Ultrasonics delivers Ultrasonic Impact Technology, a patented treatment that improves the structure and properties of metals and welded components. The technology is being used around the globe in industries as diverse as energy, defense, manufacturing, oil and gas, transportation, and many others.

After years of slow adoption, shareholders of Applied Ultrasonics understood that under the current business model and corporate infrastructure, it would be challenging and time consuming to fully realize the potential of the company’s patented technology. With this understanding, Jemison Investment Company, along with other shareholders, approached Founders in order to evaluate strategic options. After considering a range of strategic options, Founders advised Applied Ultrasonics and the shareholders that the best alternative would most likely come from a sale to a large player in the industrials space that could effectively deploy the technology by leveraging a more robust and established sales and distribution network.

Founders advised Applied Ultrasonics through a market-driven, sell-side process. The process yielded several global industrial leaders, and Founders worked with these groups to select and negotiate a solid offer with the buyer, a Fortune 100, publicly-traded corporation, and manage the due diligence process. The combination of the technology from Applied Ultrasonic, along with the global distribution and sales network of the buyer have the ability to create enormous value. In addition to closing consideration, sellers will benefit from an ongoing royalty, which allows them to share in the value from the combined companies. The transaction culminated in a sale of the company’s intellectual property and accompanying assets in order to best accommodate the stringent due diligence requirements of the buyer.

About Founders Investment Banking

Founders Investment Banking (Founders) is a merger, acquisition & strategic advisory firm serving middle-market companies. Founders’ focus is on oil and gas, SaaS/software, industrials, 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 provide securities-related services discussed herein, certain principals of Founders are licensed with M&A Securities Group, Inc. or Founders M&A Advisory, LLC, both members FINRA & SiPC. M&A Securities Group and Founders are unaffiliated entities. Founders M&A Advisory is a wholly owned subsidiary of Founders. For more information, visit www.foundersib.com.