The Situation
Fidelity BSG is executing an aggressive growth strategy aimed at expanding both its technical capabilities (building automation & controls, as well as service-focused mechanical contracting capabilities) and its geographic footprint into strategic, high-growth markets (South and Gulf regions). Ascend acts as an outsourced buy-side partner, originating and in some cases helping to close transactions on behalf of the Fidelity BSG management team and their private equity partner, Onex Partners. Prior to Onex Partners’ acquisition of Fidelity BSG in November 2021, our team worked with private equity partner Oaktree Capital Management. Services range from managing the entire lifecycle of the processes to origination and relationship development only:
- Preliminary financial modeling and business diligence for initial target evaluation
- High-touch, tailored target management to facilitate negotiation and structuring
- Due diligence coordination of third-party advisors
Industry
- Business Services
Client Type
- PE-backed Strategic
Services Provided
- Buy-Side Transactions
Press Release(s)
READ AIR TECHNOLOGIES PRESS RELEASE READ METRO MECHANICAL PRESS RELEASE READ SYSTEMS CONTRACTORS PRESS RELEASE READ SMART BUILDING TECHNOLOGIES PRESS RELEASE READ SOUTH FLORIDA CONTROLS PRESS RELEASE READ CT/HX, HCT & CII SERVICE PRESS RELEASE READ POWER OF CLEAN ENERGY PRESS RELEASEThe Strategy
Our team worked with Fidelity BSG and Oaktree (private equity partner at the start of our engagement) to understand their unique acquisition model and develop a set of corresponding criteria used to establish a universe of targets within high-priority regions with the desired capabilities. As different markets and ownership structures can create varying situations for target companies, we tailor outreach tactics to successfully engage companies based on the scenario—whether it is networking through their advisors, industry peer-group members, or mutual connections. We often reevaluate the strategy as we did when Onex Partners acquired Fidelity BSG in November 2021.
The Execution
A substantial component of this engagement involves remaining disciplined in evaluating targets to fit the criteria, which means frequently disqualifying targets and passing up on opportunities that are not a fit. Fidelity BSG and Onex Partners’ unique partnership model (vs. acquiring companies and replacing management) means we not only have to meet the operating criteria, but also ensure the selling shareholders/leadership are aligned from a culture and aptitude standpoint. Our rigorous screening process on the front end helps us remain tremendously efficient in bringing desired parties to close vs. submitting many IOIs/LOIs just to disqualify them at a later date and/or running into avoidable disagreements.