The Transactions:

The Principals of Founders Investment Banking, LLC acted as the sole financial advisor in a management buyout of AMI The management buyout was sponsored by KLH Capital who was supported by debt providers Plexus Capital and The PrivateBank.

The Company: 

Based in Scott, Louisiana, 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, AMI prides itself on providing a high level of customer service.

The Objectives: 

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.

AMI 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 Solution: 

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.

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.

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