Learn how your company can benefit from our collective resources that enrich lives coast-to-coast.

Our approach to acquisition begins with a thorough assessment of a business’s mechanical, plumbing and building control services. We look to see if the business serves non-residential customers, has strong management teams in place and is one that promotes an employee-centric culture. Our process involves aligning with companies that offer a balanced mix of project and service work and have a geographical presence in the southern half of the country. The businesses that focus on facilities with high equipment density (e.g., industrial facilities, hospitals, schools, colleges, data centers) are the ones we know can benefit from our collective skill sets and vendor partnerships, and are equipped to deliver innovative infrastructure, technology, and energy solutions.

To begin, we have an introductory call to build personal relationships and gain a high-level understanding of the business. If an owner is willing to continue the dialogue, we execute a non-disclosure agreement (“NDA”) to protect the confidentiality of the information exchanged. Then we will provide a preliminary request list of information to better understand the business and confirm its fit within our acquisition criteria. Once established, we meet in person to get a better view on culture and strategic alignment. After reviewing the information provided and building rapport, we issue a non-binding letter of intent (“LOI”). If accepted, we conduct confirmatory due diligence and negotiate the purchase agreement (and ancillary legal documents) estimating transaction closing within 90 days of execution of the LOI, assuming that there are no significant delays in the delivery of the requested information.

Our preference is to maintain the leadership team to ensure continuity during and after an acquisition. At the same time, we are flexible to contemplate the transition out of the business in cases where the founders/owners are looking for a near-term retirement. When we approach a business, we explore the owner’s personal and professional goals to learn whether they have an interest in retaining day-to-day operation oversight, or not. Instead of acquiring businesses to drive profitability by simply reducing headcount and implementing cost savings, we evaluate the knowledge and industry expertise of the founders/owners and their management teams to discover how we can use our industry expertise to support the involvement they would want moving forward.

We base our valuations on several factors. Most notably, we assess comparable transactions and specific characteristics of the business. For example, we look at end-markets served, historical growth and profitability, backlog, type of work performed, the physical location and geography, revealing market potential/size. Since an acquired business will become a new location for us, we consider past and potential financial market conditions.

Modigent has a strong corporate structure that covers the key support functions of a growing and scalable business. Organizations we acquire can take advantage of our information technology, human resources, finance, sales, and administrative capabilities that can free up management teams to concentrate on higher value tasks, creating increased efficiency and accelerated growth. We also offer regional leadership teams that support businesses in their day-to-day activities. We usually hear owners say post-transaction that they are in a better position to focus on customers, operational execution and business development which results in higher profitability. Additionally, companies benefit from our collective skill sets and vendor partnerships that come with the complete backing of a nationally-proven brand.