21 Notable Member Deals from 2021

2021 M&A markets did not disappoint. Global and North American M&A volumes shattered prior records.

A seller backlog from 2020, easy credit, and abundant private equity dry powder led to a year of record deal volume and record valuations. President Biden’s unsuccessful tax change proposal nonetheless fueled healthy sell-side M&A activity in the spring and summer months of 2021 especially.

Despite Covid-19’s continued infection waves and variant unpredictability, it appears to have only further intensified the multi-year theme of Capital Superabundance that is driving so much change in private capital markets. In the lower middle market specifically, today’s business owners enjoy a broader selection of capital partners than ever before. Search funds, once considered the ill-funded bottom-feeders on the private equity totem pole, are now backed by institutional LPs. They are competitive and credible buyers in the “SMB / micro-PE” category. The independent private equity sponsor model, in which capital is raised on a deal by deal basis, is now considered more attractive to some established GPs than the committed capital model. And as you’ll see below, even the global bulge bracket investment banks have decided to spend time pursuing assets in the lower middle market. 

Add all of that up, alongside the now established family office direct investing trend and other emergent sources of permanent capital, and you get a lower middle market buyer universe that is as diverse and capable as I’ve ever seen.

Below, we profile twenty-one noteworthy lower middle market transactions sourced and closed by Axial members in 2021. We are delighted to see so much lower middle market transaction success find its start via the Axial platform.  

Featured Transaction Quick Stats

• Average Revenue: $14,459,614
• Average EBITDA: $2,333,050
• Average EBITDA Margin: 19.12%
• Average Days from Initial Pursuit to Close: 251
• Average Days from LOI to Close: 115

CEO Ally Advises Knack Global on its Investment from Weave Growth Partners

Investment / Industry: Technology

Knack Global, established in 2007, is a leading provider of a portfolio of high-quality RCM services that allows healthcare businesses to focus on their core competencies of providing patient care. Knack’s portfolio of services spans the entire RCM value chain from Pre-Claim activities to Accounts Resolutions. Powered with best-in-class technology and a global team of more than 2,000 professionals, Knack serves healthcare providers across a broad range of categories and specialties including physician groups, durable medical equipment suppliers, optometry and ophthalmology practices, surgical & ambulatory care centers and hospitals, and health systems.

Baker Group M&A Consultants Advises State Mechanical Services on Acquisition by Amalgam Capital

Acquisition / Industry: HVAC, Industrials

As a full service commercial and industrial mechanical contractor, State Mechanical Services specializes in design/build and design/assist HVAC solutions, as well as custom preventive maintenance programs that extend the life of mechanical equipment and maximize energy savings. With more than 100 years of combined experience and valuable mechanical engineering expertise, SMS’s licensed professional engineers and LEED-certified designers help deliver projects on time and within budget. That’s why building owners, property managers, general contractors and developers in Chicagoland, Southeast Wisconsin and Northwest Indiana rely on State Mechanical Services.

Fairchild Capital Partners Announces Acquisition of KitNipBox Cat Subscription Service

Acquisition / Industry:  Consumer

KitNipBox is the No. 1 subscription box for cats. The company sends a curated box of new cat toys, treats and other goodies to doorsteps nationwide each month. The Subscription Trade Association has honored the company with a CUBE Award for being the best Pet Subscription Box in 2017, 2018 and 2020. A portion of its proceeds are donated to animal welfare organizations across the country.

Evangeline Partners Advises The Gauge House on Acquisition by Marigny Investments

Acquisition / Industry: Industrials

The Gauge House, with locations in Lafayette, LA and Houma, LA, is a value-added distributor of measurement and instrumentation equipment. The company supplies leading brands of pressure and temperature gauges, fittings, valves, tubing and associated products and services such as assembly, calibration, certification and testing. The Gauge House has a 35-year history of supporting customers throughout the United States and internationally.

Corporate Fuel Advises Allos Environmental on Investment from Columbia Pacific Business Finance

Term Loan / Industry: Industrials

Peak Technology Partners Advises Revenue Grid on Investment from W3Capital

Investment / Industry: Technology

Revenue Grid is the first-to-market Revenue Operations platform that covers the full revenue cycle with the most comprehensive set of algorithmic Guided Selling capabilities. Revenue Grid uses complete customer journey data and sales teams’ unique processes and playbooks to create a dynamic guide fitting revenue org of any complexity. With over 15 years serving as the best sales activity data-capture solution on the market, Revenue Grid has unparalleled expertise in data integration, advanced analytics, and sales automation. Organizations as diverse as Hilton, Western Union, Moody’s, Trip Advisor, Red Cross, and Robert Half have chosen Revenue Grid thanks to its customizability and enterprise-readiness.

Clayton Capital Partners Advises Pacific West on Acquisition by Bluejay Capital Partners

Acquisition / Industry: Industrials

Pacific West, LLC is an environmental and general engineering construction contractor in business since 1988. Based in Salt Lake City, UT, the Company provides a wide range of services to its many clients, including but not limited to: construction of railroad fueling facilities, track beds and rail, wastewater treatment plants, above and below ground mechanical facilities, road construction, trench-less pipe services, and 24/7 emergency response services.

ASA Ventures Group Advises Healthcare Building Solutions on Partnership with Latticework Capital Management

Acquisition / Industry: Health Care

Healthcare Building Solutions (HBS) collaborates with leading healthcare organizations and their partners to provide comprehensive strategies and solutions to ensure healthcare facilities projects, including new constructions, renovations, and additions, are completed on time and on budget. As former hospital administrators and facility managers, HBS team members have been involved in the development, design, equipment planning and procurement, management, and operation of facilities of all sizes.

eMerge M&A Advises Jensen Plumbing & Heating on Acquisition by Eagle Hill Partners

Acquisition / Industry: Industrials

Jensen’s Plumbing & Heating provides commercial & residential installation and repair to all levels of Plumbing, Air Conditioning, and Heating since 1942. From rooftop unit installation to underground plumbing work, Jensen’s installs, repairs and maintains the plumbing, heating and cooling for commercial and residential properties.

Impact Acquisition Advises Home Instead on Acquisition by Trailcreek Capital Group

Acquisition / Industry: Health Care

KeyStone Advises Pacific Register Company on its Acquisition by Cottonwood

Acquisition / Industry: Industrials

Pacific Register Company is a family-owned business with four generations of manufacturing experience and two generations of knowledge and experience in the HVAC trade.  The company manufactures its branded decorative wall grilles and ceiling registers for residential and commercial spaces.  The Company sells directly to homeowners, HVAC contractors, developers, designers, and architects through its company website and other online channels.  The company’s state of the art equipment and technology enables it to offer customers a broad product offering with favorable lead times.

EdgePoint Capital Advises Cable Manufacturing and Assembly on Acquisition by Torque Capital Group

Acquisition / Industry: Industrials

Cable Manufacturing and Assembly (CMA) / Cablecraft is a leading designer and  manufacturer of cable assemblies, controls and related products. CMA serves a diverse base of clients in the transportation, recreational vehicle, marine, specialty (aerospace/medical), and general industrial markets.

SDR Ventures Advises SCApath and Spinnaker SCS on Acquisition by Black Lake Capital

Acquisition / Industry: Business Services

Spinnaker SCA is a leading supply chain services firm providing End-to-End Supply Chain Strategy, Planning, and Execution Consulting services, based in Boulder, CO. Founded in 2021 through the joining of two top supply chain consulting firms, SCApath LLC and Spinnaker Supply Chain, together Spinnaker SCA provides their customers a broad set of services to enable their clients’ supply chain capabilities. With a combined over 30 years of experience in the supply chain industry, Spinnaker SCA’s services offerings include Supply Chain Design & Strategy, Supply Chain Planning, Omni-Channel Fulfillment, Distribution, and Logistics Management and Change Management consulting services.

MidCap Advises The Eye Health Group on its Acquisition by Beverly Capital

Acquisition / Industry: Health Care

The Eye Health Group is a leading vision support organization that assists its nine New Jersey and New York practice providers in performing comprehensive eyecare services. The Eye Health Group provides a full suite of medical eyecare services, from diagnosis and management of eye diseases to pathology, lab testing and pre- and post-operative care for surgical patients, as well as prescribing and dispensing contact lenses and vision corrective glasses.

Shaughnessy Group Advises Interpump on Acquisition by Summit Ridge Capital

Acquisition / Industry: Industrials

Utah Business Consultants Advises JQ Medical Supply on Acquisition by Tacoma Holdings

Acquisition / Industry: Health Care

JQ Medical Supply is a leading specialty distributor of Durable Medical Equipment (“DME”), specializing in the home delivery of Diabetes products including continuous glucose monitors (“CGM”), insulin pumps, and other testing supplies. The company is one of the largest and fastest growing Diabetes-focused DME providers in the United States and serves customers nationally.  JQ Medical Supply is headquartered in Salt Lake City, Utah

Schwartz & Co Advise National Bronze Mfg. on Acquisition by Hummock Industries

Acquisition / Industry: Industrials

National Bronze Mfg. is a leading manufacturer and supplier of bronze based products.  Since 1911 National Bronze Mfg. has been one the largest manufacturers of bronze bushings, bearings, and other industrial components.  National Bronze Mfg. is also a full metal service center supplying bronze, brass, and copper bar stock to manufacturers worldwide.  With an expertise in copper alloy based product National Bronze Mfg. services customers in a wide variety of industries. Because we are privately held, we are able to make long range commitments and capital investments in support of our customers, our employees, our suppliers and our community.

RoseBiz Advises B2B Enterprise Marketing Services Firm on Acquisition by a Global Bulge Bracket Investment Bank

Acquisition / Industry: Business Services

This B2B enterprise marketing services firm connects experienced project and program managers in marketing, communications, brand building, and business operations with meaningful, flexible work.  

Mountain Summit Advisors Advises Vorro on Acquisition by Basis Vectors

Acquisition / Industry: Technology

Headquartered in Orange Park, Florida, Vorro delivers data transformation and exchange technology solutions to several industries including retail, government, and several sectors across the healthcare continuum.

BTSI Advises AM Equipment on its Acquisition by Ilion Capital Partners

Acquisition / Industry: Manufacturing

Headquartered in Jefferson, Oregon, AM Equipment designs and manufactures DC linear and rotary actuators for applications such as windshield wiper systems, automated stair steps, door openers, and wheelchair lifts. The company is a world-wide supplier for diverse industries: everything from mass-transit to robotics.

Stout Advises LEW Corporation on Investment by Evolution Capital Partners

Acquisition / Industry: Business Services

LEW Corporation, Inc. is one of the oldest and most experienced environmental consulting, remediation and training companies in the country. The company provides clients with professional environmental consulting, investigation, training and remediation services while assuring unsurpassed quality and service.