CAI Technologies (CAI), a municipal mapping and GIS services company located in Littleton, NH, has acquired the tax mapping, web hosting and specialty natural resource mapping divisions of the James W. Sewall Company (Sewall), located in Old Town, ME.
The two firms had worked together in the past and in the 4th quarter of 2013, Sewall partnered with CAI to provide map maintenance and municipal GIS related services to many of Sewall’s clients. This latest transaction finalizes a complete transition of those services and personnel and allows the two companies to better focus on their respective areas of expertise.
Business Transition Strategies (BTS), provided full transaction advisory services to CAI Technologies in seeking the acquisition and completing the transaction.
Under the terms of the formal engagement, advisor Mark Lagasse of BTS provided the following services:
The Sewall transaction was a “carve out” of the GIS segment of the larger operation, with the current owners – private investment group Treadwell Franklin Infrastructure Capital LLC - retaining the substantial engineering, forestry and planning portions of the company.
Originally founded in 1985, CAI has grown to serve nearly 400 local, regional and state governments throughout New England and New York. CAI and Sewall are both Silver Tier Esri Business Partners. Through its acquisition of the Sewall divisions, CAI will add significant municipal and county government clients. This strategic acquisition further cements CAI as the northeast’s leader in municipal mapping and GIS services, and also serves to expand CAI’s footprint well into southern states.
“We’re very excited about this acquisition, as well as the commitment that Sewall and CAI have made to provide complementary services in tandem going forward, with Sewall focusing on its engineering, survey, geospatial, utilities, and natural resources consulting work, and CAI on its mapping, GIS development and hosting services” said Franco Rossi, President of CAI. “We’re proud to partner with such an iconic brand in the municipal services space.”
George Campbell, Sewall’s President, remarked, “Given our long-term commitment to our valued clients and associates, we entered into this partnership knowing that both will become part of an industry-leading company focused on growth, as well as top quality, innovative services. We are confident that this transition will be a smooth one for Sewall’s mapping clients and the outstanding staff members that are moving to CAI with their projects. Through our ongoing partnership with CAI, both CAI and Sewall clients will have the opportunity to access a broader range of infrastructure and mapping services. We look forward to the next phase of our journey together.”
"The entire process went smoothly and professionally. The BTS team kept me fully informed at every step. They worked hard and were effective in bringing the deal home."
"Skip and I continue to be grateful for all you have done to make the sale of Pure Flow come to fruition."
"BTS’s level of expertise in the process and close attention to detail enabled us to successfully navigate the deal."
"These types of transactions are often long and complicated and I doubt it could have been successfully completed without your close ongoing involvement."
"The outside objective point of view that you have brought us has been invaluable as we prepare for the rapid growth."
"John then found the right buyer and coordinated a seamless transition—he doesn’t miss a single detail."
"John immediately identified our strengths and experiences and discussed a business that ultimately was more in line with our goals."
"The BTS team came in, evaluated everything in a professional and thankfully non-threatening manner."
Changes by owners helped a sale
Owners considering selling can look at the experience of a N.H. company for ideas of what to do to increase their chances for a good transition.
Advisor Tip: Don’t lose your focus
Don't let those future plans distract you from what's going on today.
Growth Methods Used by Buyers
We often hear from founders who feel they have hit the ceiling with what they can do with their companies. Buyer groups in the market see this as an opportunity.
Manufacturing Company Sale Named Deal of the Year
In November, BTS and IDI were presented the M&A Source Deal of the Year Award at the organization’s 2019 conference in San Antonio.
A Better Option to the Unsolicited Offer
The call came out of the blue. It was a group interested in buying the business. They needed information. Your company was a perfect fit. Just send us some details and we will be in touch.
M&A Advisor Tip - How to Answer Questions
As you start the sale process, you may be holding offsite meetings and fielding confidential phone calls. Even a subtle shift in activity can cause savvy employees to wonder, ‘What's up?’.
What’s the Best Option for my Business?
Business owners have a wide variety of options open to them. A group of business owners joined us at our fall master class that focused on transition options and the experience.
M&A Advisor Tip - When You Can't Fix Customer Concentration Issues
As a general rule, no one customer should account for more than 20-25% of your company revenue.
Transition to Freedom explores business transition experiences
Hats off to MJ Schoer for sharing his fascinating multi-level business transition story to a well attended meeting jointly presented by Business Transition Strategies and mPower Advisors.
Four buyers, three values, one winner
Businesses we sell typically go to market without a preset asking price. Why? Value is really in the eye of the buyer. And that can vary widely, depending on who they are and what they have in mind.
Precision Machining Company
Initially, liquidation was a serious consideration. It would offer a quick exit but would hurt loyal employees and disrupt the customers who had come to rely on its quality production.
Green Product Company
Our client owners could dig in for the long haul…However, this would take five years or more. Owners simply lacked the horsepower to do it.
Water Purification Company and Young Buyers
Owners decided they wanted to retire. They also wanted to be fair to the staff who had been loyal to them. Could the company be sold, the staff retained and the facility remain in use?
Magnetics Company with High Profile Customers
(T)he manufacturer would need to focus on growing EBITDA to capture interest from major strategic buyers and achieve a higher multiple of earnings.