Investment Bankers to the Middle Market

Case Study

Avogadro Group | Engineering & Construction Industry


Situation:Avogadro Group located in the San Francisco Bay Area is recognized as a leader in the regulatory compliance testing and monitoring of stack gasses in the power generation, petroleum refining & exploration, and other industries that release gasses and smoke into the atmosphere. Their outstanding reputation is based on the consistent high quality and reliability of their testing and reporting standards as well as their industry accreditation. The owner spent over 15 years building the company to its current size, with offices in Arizona and the Pacific Northwest. The growth of the company had reached a plateau where outside capital was required to take the business to a higher level.

Solution:CFA San Francisco was initially hired by Avogadro to assist them in responding to an unsolicited offer from East-Coast based $300 million firm interested in expanding to the West-Coast. Discussions were unsuccessful; however the owner’s motivation was undeterred and CFA continued to provide critical advisory services. Subsequently, Montrose Environmental Corporation contacted Avogadro on an unsolicited basis. Montrose was formed by Yukon Capital, a family office, to build a leading, diversified environmental service enterprise. They had previously acquired SCEC, a Southern California company providing services similar to Avogadro, and Associated Laboratories in Los Angeles which provides environmental analytical laboratory services. A letter of intent was signed on March 21, 2013 for Montrose to acquire 100% interest in Avogadro, and the transaction closed on July 5, 2013.

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