Uplift Partners is proud to announce another highly successful transaction for a great family-owned business
Background
Republic is a Midwest-based HVAC and Electrical Supply distribution business with operations in Iowa, Illinois and Wisconsin. Republic was founded in 1916 in Davenport, Iowa, where its headquarters remains to this day, and had been family-owned since its founding.
When it became evident the incoming generation was not going to take the reins of the family business, the idea of transitioning ownership had become increasingly part of discussions among family members. As the family leaned on its trusted advisors, several questions began to emerge…How to start this process? Who could they trust to help? What was most important to them?
While they knew they needed to begin this journey, they decided there were several “must-haves” in a transaction. However this process would evolve, the family committed to the following principles to help them make the right decision:
- The team would need to stay intact;
- The highly collaborative culture of the business would need to be protected and even enhanced;
- This process would need to be conducted in utmost confidence;
- Whomever stepped into the family’s ownership would need to have the highest integrity; and,
- The brand and reputation among customers, suppliers, employees, and the communities in which Republic operates, would be preserved.
Exploring options
With the above mission in mind and having years of experience executing similar mandates, the Uplift team crafted the Republic story, highlighting the many strengths of the business and reinforcing the unique value of its brand and value-add service model. Then, following a brief and discreet outreach to selected qualified parties under NDA, the Uplift team cultivated a selected group of parties that “checked all the boxes” the family was looking for in a transaction partner. From there, selected parties were invited into deeper discussions led by the Uplift team, facilitating a more thorough understanding of the business and the quality of the growth opportunity with the management team. In parallel, the Republic management team and the family ownership could use these interactions as a chance to get to know potential transaction partners.
Private equity
As the process evolved and the family further crystallized their interests, several private equity firms emerged with the most attractive terms of a new partnership. With a strong private equity partner, the family was able to achieve everything they were looking for in a transaction, including upholding the “must have” principles highlighted above, while also participating in the future potential of the business by rolling over some equity alongside the new partner. This last piece, the idea of continuing in some ownership of the business, proved to be a real difference-maker as it allowed the family to announce to the employees, customers and suppliers alike “we’re not going anywhere”. In the end, Graycliff Partners, a longstanding private equity firm with terrific experience transitioning family-owned businesses, distinguished themselves and delivered on their commitment to the family.
Strong partnerships are gold
At Uplift Partners, everything we do centers on the power of a great partnership. Clients entrust us with their goals; we, in turn, work tirelessly to produce the best outcome possible, which can take many months or longer. And sometimes, like in the case of Republic, the best outcome for our client is actually a new partnership with a strong private equity firm we have known for years that rises to the occasion…and acts in many ways like a partner to us.
