Sale: CETCON Inc. to Beacon Enterprise Solutions

Generational Equity, an advisor to privately held and family-owned businesses for mergers, acquisitions, and strategic growth initiatives, announced the sale of its client CETCON Incorporated, an Ohio-based engineering firm specializing in technology-related engineering projects, to Beacon Enterprise Solutions Group, Inc., a technology and telecommunications provider headquartered in Louisville, Ky.

“This transaction resulted in a strategic fit that will facilitate the growth and success of the businesses in the future,” said Doug Smith, Generational Equity managing director in the transaction.

Headquartered in Cincinnati, Ohio, CETCON, Inc. designs and implements communications systems for high-profile companies around the world. Beacon Solutions is a leading provider of technology and telecommunications services, providing support from software development and infrastructure design to interconnect voice/data and systems integration.

“The acquisition of CETCON adds a very important element in delivering complete solutions to our clients. Their engineering expertise and solid reputation in the industry were keys factors in our decision,” said Bruce Widener, chairman and CEO of Beacon Enterprise Solutions Group, Inc. “We are confident that this new relationship will prove successful for all parties.”

“We built our business from the ground up so it was important that we find the right buyer who would continue with parallel business objectives,” said Ken Kerr of CETCON. “Beacon presented us with a great opportunity and we feel CETCON will be a perfect addition to their portfolio.

Sale: A&F Networking to NetTeks Technology Consulting, Inc.

Generational Equity, an international leader in middle market mergers and acquisitions, recently advised Connecticut-based A&F Networking, on its sale to NetTeks Technology Consulting, Inc., of Boston.  A&F Networking provides managed services, security and Cisco unified communications solutions to customers throughout Connecticut and New York.  NetTeks Technology Consulting is a premier provider of business continuity, security, voice/data convergence and managed services solutions to mid-market clients throughout New England.

Managing Director Doug Smith, Senior M&A Advisor Mike Ryan, Assistant Vice President Matt Kneifl and Evaluation Associate Mike Meredith led Generational Equity’s deal team in negotiating the transaction on behalf of the client.  In addition to its recent representation of A&F Networking, Generational Equity is currently making a market for nearly 400 middle market companies across North America and overseas, matching them to prospective buyers in North America and Western Europe.

Generational Equity is an international leader assisting privately held, middle market clients in mergers, acquisitions and divestitures. The firm’s mission is to release the Generational Equity (hence, the name “Generational Equity”) that is in every business. After 20 years of growth, the Generational Equity group of companies has more than 300 professional advisors located in offices worldwide.  Aside from its headquarters in Dallas, Texas, Generational Equity has U.S. affiliate offices in New York, Chicago and Irvine, Calif., and international affiliate offices in London, United Kingdom and Zurich, Switzerland.  For more information, contact Generational Equity’s Dallas headquarters by calling (877) 213-1792 or via e-mail to info-us@genequityco.com.

Sale: RCI Painting to an Individual Investor

RCI Painting, Inc. is a commercial painting contractor serving primarily Maryland and Washington D.C. The company had long standing relationships developed by the owners with owners and landlords of large apartment buildings in the area which resulted in substantial repeat business. The company also held a license in Maryland to do renovation work.
The buyer, an individual investor, had hired a local real estate broker to help him find a business doing renovation work in the area. The broker saw our listing on BizBuySell and brought him to our attention. His vision was to expand the business in Virginia where he resided.
RCI signed an engagement agreement in May of 2006 and we started working on the marketing campaign immediately. We got very little response to our mailer as the market was flooded with contractors. Our client agreed to allow us to run local print advertising which also had marginal results. In late 2006 we proposed to the client to go off the market until 2006 numbers were complete and re-look at the market at that time. We put the deal on hold.
We did an update in March of 2007 and the client wanted to remain in the market. We identified a handful of strategic buyers in the surrounding area for our campaign. We got one interested party that came to the table with a reasonable first offer. Negotiations continued and an LOI was signed 10/2/07 contingent on the buyer obtaining financing. The financing fell through late October and we were back to square one. Again we went on hold until now 2007 numbers were complete.
We updated the profile in March 2008 and again posted the business on several internet sites.  A local realtor brought us the potential buyer who produced a strong first offer on 4/2/08.  The LOI was negotiated and signed April 18, 2008 and closing was projected for early June. Due diligence went smoothly, but the buyers bank was moving very slowly. The purchase docs were ready for signature in early June but we waited on the bank. The bank finally approved financing, but asked that the seller try to obtain a Virginia license. We modified the agreement to make a best efforts attempt but the buyer objected and the deal apparently would die. We had an all hands meeting on 7/8 to resolve the final issue. All parties agreed to modify language and the deal closed and funded July 11, 2008.”