MidCap Advisors Sells Leading Security Firm and Accomplishes the Goals for Two Generations of Owners
Client: Access Systems Integration
Business Category: Security and Homeland Defense
When Jim Hennessy, Ed Gleason and David Hickson started Access Systems Integration, LLC (ASI) in 2001, their goal was to build a premier security integrator. Today, ASI is one of the highest regarded integrators in the industry and a leading security integrator in the greater New York metropolitan area.
With one of the owners of ASI looking to retire, they retained MidCap Advisors with the goal of finding a strategic buyer who would continue to build that ASI brand and provide the younger generation of ASI's owners to continue to play an active role in growing and managing the business.
MidCap Advisors had experience in the security and homeland defense industry-MidCap had performed some financial advisory services for Michael Stapleton Associates (MSA), the nation's largest privately owned SAFETY Act Certified Detection Security Company. John Poppe, who had worked with MSA, immediately identified significant synergies between ASI and MSA and knew that the combined company would be able to offer high-level perimeter security emphasizing protection against explosive devices, chemical and biological agents, and potential high-risk intruders, as well as integrated CCTV, digital recording, and access control systems.
While MidCap contacted many potential buyers for ASI, MSA consistently demonstrated that they would be able to help ASI's founders accomplish their dual objectives.
Why The Client Retained MidCap Advisors
After interviews with several investment bankers, MidCap Advisors was awarded the engagement because of its:
Experienced and seasoned team of investment bankers
Previous experience in the security and homeland defence industry
Proven ability to identify and negotiate successful transactions with strategic buyers and private equity groups
Good personal rapport with ASI's co-founders and management team
The MidCap Advantage
MidCap Advisors worked with ASI's owners to:
Position the business as a unique opportunity for strategic buyers
Demonstrate and document the company's future growth plans
Enhance the company's value by restating its financial statements with documented owner add-backs and adjustments
Prepare a professional offering package that presented the company's strengths and value drivers
Identify and contact a number of carefully selected strategic buyers
Handle negotiations on price and terms with several strategic buyers
Deal Summary and Results
The results of this highly successful transaction, included:
ASI was purchase by Michael Stapleton Associates
The older of the three co-founders was able to retire and cash out
The younger generaton of co-founders was able to take some chips off the table and continue to manage ASI
A final purchase price and terms that exceeded the client's original expectations
After the transaction was completed, James Hennessy, President of ASI, said "All of us at ASI are pleased with the acquisition of Access Systems Integration by MSA. MidCap Advisors did a great job."
Mr. Hennessy will continue to serve as President of the Security Systems Integration Division of MSA.