Investment Bankers to the Middle Market
header

Case Study

VP Racing Fuels, Inc. | Energy Industry


Situation: Alan Cerwick, a former Fortune 100 executive with an extensive and impressive corporate background in the downstream energy sector, had a goal… to create a new retail gasoline brand via the acquisition of what he believes is the top racing fuels producer in the world. He saw VP Racing Fuels, Inc. as the only racing fuels producer in the world with an industry “brand” that has a “real story” behind it that could be used to build a new retail gasoline brand. Actually acquiring the company became the challenge, as the economy, capital markets and valuation requirements rendered the acquisition undoable under a typical approach. The San Antonio CFA office had been working with Alan throughout the process and understood the needs and desires of all of the parties. When it became clear that a creative solution was needed they outlined a structure that proved to be attractive to all and enabled a deal to be completed.

Solution: CFA San Antonio looked at this with Alan from absolutely every angle.  During the process of investigating an acquisition, Alan and the owner developed an excellent relationship with each developing a respect for the other’s strengths and focus. Building on this key element, a deal structure was crafted whereby Alan acquired a minority stock position coupled with a call option providing the opportunity to purchase 100% of the company. Alan also assumed the position of President where he is responsible for managing and growing the company; something the owner found extremely attractive and which enables the owner to focus on his love of research and PR. VP Racing fuels is now recognized by many as the world leader in race fuel technology, with a catalog of nearly 70 fuel blends and a growing roster of VP-fueled champions across the entire spectrum of global motorsports.

We can help you build shareholder value and assure the success of your financial transactions. Contact your local CFA professional for more information.