BRIGHT STAR SOLUTIONS
Leading provider of overhead and underground electrical construction and maintenance services.
Energy, Power & Infrastructure
Construction & Engineering
Founded in 2009 as a solar installation company and headquartered in Sour Lake, Texas, Bright Star Solutions, Inc. (“Bright Star”) was purchased by Evan Sowders in 2018, and over the years has transformed into a leading provider of construction and maintenance services for overhead and underground electrical distribution systems for investor-owned utilities, regional co-ops, local municipalities and industrial customers.
Through our industry outreach, Romanchuk & Co. first met with Evan Sowders, President, and wife Monica Sowders, VP & Controller, in early 2022. While they were not ready to exit the Company by any means, they were considering solutions to address their need for additional capital, equipment and support to meet growth demand from customers. Bright Star engaged Romanchuk & Co. to lead a sell-side process, specifically a majority recapitalization of the business.
DISCRETE PROCESS LEADS TO OPTIMAL RESULTS
In determining our marketing strategy, we recognized we would need to find an investor that could meet these important objectives for Bright Star:
Allow the current owner to roll a significant amount of equity into the transaction
Understand the T&D industry and importance of growing safely
Desire to work with current management and recognize their ability to continue to run the day-to-day operations going forward
Provide capital to purchase highly utilized rented equipment that was currently a significant expense on the income statement
Improve infrastructure of the business to support rapid growth
From our years of experience in the industry, we created a limited pool of potential strategic and financial buyers we knew would align with management’s objectives above. Through several discussions, Jumana Capital arose as the best fit to lead Bright Star into their next phase of growth.
Additionally, we increased valuation substantially by creating a pro-forma EBITDA model showing the historical and future impacts to Bright Star’s cash flow by structuring the rented equipment as owned, while securing a buyout plan with an equipment vendor in a very tight equipment market.
In February 2023, Jumana acquired a majority stake in Bright Star. As a result of the transaction, Bright Star now owns its equipment, and the improved cash flow will help fund growth going forward. Evan Sowders will maintain a significant portion of Bright Star and continue to lead the day-to-day efforts along-side his current management team.
“The team at Romanchuk & Co. supported us throughout the entire process, provided guidance and thoughtful advice based upon their years of experience in our sector. At the end of the day, we have found a great partner in Jumana to help us grow our business over the next several years.”
- Evan Sowders, President of Bright Star Solutions
Romanchuk & Co. provides strategic advisory services to our clients across the lower middle market, including sourcing, initiating, structuring and negotiating mergers and acquisitions, raising capital, as well as providing valuation and restructuring services. With over two decades of experience working in and around the utility infrastructure sector, we specialize in advising owners of privately-held businesses on the preparation and sale of their company, facilitating mergers and acquisitions, guiding companies through capital raises, and assisting in identifying and executing upon strategic opportunities.
The above testimonials may not be representative of the experience of other clients and should not be construed as a guarantee of future performance or success.