借助专注创始人的投资者促成的一家成功公司出售

Partnering with a Founder-FocusedInvestor for a Successful Sale—A Case Study Imagine an enterprising individual scrawling ideas on a napkin in the mid-1990s,determined to leave his mark on the commoditized world of wire and cable.By 2020, those concepts and ideas evolved into a successful company, fetchinga $465 million sale through William Blair serving as financial advisor. Windy City Wire and Seidler Equity Partners The company, Windy City Wire of Bolingbrook, Ill., did not enjoy an easy journey to success. But itsleaders made an important decision in 2005 by joining Seidler Equity Partners, an investment firmknown for helping founder-focused entrepreneurs expand their businesses. Under Rich Galgano, founderand CEO of Windy City Wire, this 15-year partnership saw the company’s EBITDA grow more than10-fold—cementing it as a leader in the low voltage wire and cable industry. Finding the Right PartnerThey agreed that selling a minority stake would work The Company’s JourneyWindy City Wire’s journey was marked with many of the challenges typical for start-ups, yet its early struggles wereparticularly severe. Days after the company’s foundersdeparted their former employer, lawsuits and temporaryrestraining orders were filed, temporary restraining ordersgranted, depositions conducted, and in lieu of continuedlitigation and legal cost, settlements agreed to. It all costWindy City Wire tens of thousands of dollars that thecompany didn’t have and months of wasted time thatcould have been spent nurturing this newborn business. under the condition that the business remain debt-free,meaning the transaction would be done without theburden of leverage so cash could continue to be reinvestedin growth. Finding an equity group that was compatiblewith these conditions was much harder than anticipated. Windy City Wire’s founders searched tirelessly until theymet the Seidlers, a private investment firm with a historyof helping founder/family-owned businesses. The Seidlers’less-intrusive partnership strategy, financial flexibility,dedication to aligning incentives and respect for existingcompany culture won over Windy City Wire’s founders,leading to a 15-year collaborative relationship. But thanks to discipline and understanding theimportance of reinvesting profits back into the business,the company grew its EBITDA beyond the $5 millionmark in its first decade. Despite this significant wealth onpaper, the two founders found themselves at a crossroads.With eight children between them and the risk associatedwith having 100% of their net worth in a single asset,both founders felt that diversification was the responsiblething to do. Seidler Equity Partners and Windy City Wire closed thepartnership deal in February 2006, just six weeks aftertheir initial face-to-face meeting. Because the investmentwas a minority stake in the debt-free business, Windy CityWire’s owners retained full control of the board. Seidlerprovided guidance that allowed Windy City Wire to maketwo acquisitions, expand multiple facilities, and enhanceits customized IT system while successfully transitioningfrom distribution to vertically integrated manufacturing—resulting in a premier brand before the time of their exit inOctober 2020. Windy City Wire and Seidler Equity Partners The Next Chapter About Seidler Equity PartnersSeidler is one of a select group of investors that partners After 25-plus years of building Windy City Wire, theownership team decided to exit the business early in thesecond quarter of 2020. Over the course of a month,Galgano considered term sheets from more than eightfirms to handle the sale of the company. He had numerousexperiences with investment bankers and knew what wasneeded to get this deal over the finish line in difficultmarket conditions. exclusively with founder- and family-owned businesses.Now in its 25th year and managing over $5 billion of capital,the firm’s business model is built on understanding businessowners’ capital needs and objectives and structuringinvestments that meet those objectives while allowing forflexibility and maintaining a true partnership. Seidler haspartnered with more than 50 founders over the last two-plus+ decades and has helped numerous companies reachtheir full potential. Galgano picked William Blair due to its extensive sectorexpertise and proven record with founder-led companies.Even amid COVID-19 challenges, the sale process wascompleted remarkably quickly; just two months fromkickoff to signing. William Blair’s expertise at managingremote deal processes ensured a swift transaction andkept things on schedule throughout. Windy City Wire’s next chapter officially began when itssale to international distributor and supplier of technicalproducts and services Diploma PLC closed. Galganoprioritized maximizing value, maintaining culture, andsafeguarding legacy and employees, resulting in a successfultransaction. He is currently authoring a book about hiscareer journey that includes a mo