Optimation Technology

Featured | Sell Side Transactions

BLUE RIVER ACTED AS EXCLUSIVE M&A ADVISOR TO OPTIMATION TECHNOLOGY

Optimation Technology (“Optimation”) engaged Blue River in March 2020, with the goal of securing a minority investment in the company. Majority owned by a private equity firm, Owner Resource Group, the company had a bright future ahead of it but needed some additional investment capital to support the growth. In addition, Optimation felt that a strategic partner that would utilize some excess capacity while providing additional opportunities for growth would be ideal. However, shortly before going to market, the Covid-19 pandemic hit. Many of Optimation’s customers shut down, significantly impacting the company’s financial performance. It was no longer a favorable time to go to market. A year later, after weathering the storm, using PP loans to strengthen the balance sheet, and with a strong backlog and pipeline, Optimation and its ownership decided it was time to move forward.  This time with the intent to secure a complete sale of the company.

Blue River began by preparing a high-level confidential information memorandum (CIM) to demonstrate Optimation’s strength and capabilities. In addition, Blue River prepared a robust buyer list consisting of 300 potential buyers (both strategic and private equity). The buyer lists were built in a collaborative effort between Blue River’s research & deal teams, and Optimation’s CEO Bill Pollock. Within the first 3 weeks of outreach, Blue River targeted 15 high potential, very strategic targets, and received a strong offer from a number of them including Re:Build Manufacturing (“Re:Build”). Blue River continued the process, reaching out to the remaining targets over the following month and was able to communicate with 90% of all buyers. Those efforts delivered 67 signed NDAs and 6 formal indications of interest that were at or above the minimum valuation guidance provided by Blue River. Re:Build was selected as buyer.

Once a Letter of Intent (LOI) was negotiated and signed, things moved quickly.  The terms of the LOI Blue River negotiated included a 30 day check-in date where Re:Build needed to confirm price and terms along with a 60 day due diligence and exclusivity period. This meant that everyone had to move extremely fast.  To support the accelerated timeframe Blue River maintained an “all-hands-on-deck” approach by conducting weekly status updates with the seller, the buyer and their advisors.

Thanks to extraordinary teamwork, things progressed quickly in a very tight timeframe. The complete financial analysis produced some unexpected delays, leading to additional negotiations. With both parties strongly invested in the successful completion of the transaction, an agreement was reached and Re:Build acquired Optimation on October 7, 2021, at a very strong valuation.

The efficient completion of this transaction, in a very tight timeframe, with a strong valuation, and extremely pleased sellers and buyers, is a testament to the high level of professionalism, great teamwork, and very knowledgeable individuals across all groups involved. Optimation fit perfectly in the Re:Build portfolio and it ended up being a very successful transaction for everyone involved.

In March 2021 Optimation was brought to market by Blue River, with the intent to secure a complete sale. Within the first 2 months, Blue River prepared the CIM, a highly targeted buyer list, and begun outreach to prospective buyers.

The broader target list consisted of 300 total potential buyers: 100 strategic targets + 200 private equity sponsors. Blue River received 67 signed NDAs and 6 formal indications of interest.

Re:Build Manufacturing was among the top 15 high potential buyers that Blue River reached out to in the first 3 weeks of outreach, and made one of the strongest offers. Agreeing to a 60 day window to close, Re:Build was selected as buyer.

Blue River maintained an “all-hands-on-deck” approach to maintain progress and speed given the tight due diligence and exclusivity period. The transaction closed on October 7, 2021. Optimation fit perfectly into Re:Build’s portfolio.

Results

SOLD TO

Blue River Financial Group has advised Optimation Technology, Rochester, NY based provider of design and build services, a portfolio company of Austin, TX based Owner Resource Group, on its recent sale to Re:Build Manufacturing. The acquisition significantly expands and adds capabilities to Re:Build Manufacturing’s Total Production Solutions group.

Blue River

DEALMAKER

Bryan Berent

Bryan Berent

Managing Partner

Darrell Arne

Darrell Arne

Managing Director

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