BACKGROUND 

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Headquartered in Rosharon, Texas, Front Line Power Construction, LLC ("FLP") is a full-service electrical infrastructure service provider of construction, maintenance and emergency response services.

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When the owners of Front Line were approached by an unsolicited strategic buyer, they sought Romanchuk & Co.'s advice and guidance in evaluating the offer. While price is always an important factor, many owners also care about the future of their company, their employees, and their legacy; therefore, they buyer's culture, experience, vision and priorities were also evaluated.

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After a few discussions and a preliminary assessment of Front Line, Romanchuk felt the owners could receive a more favorable valuation, based upon certain transactions that had recently traded in the market. By implementing a targeted process, Romanchuk & Co. could expand the buyer pool for the owners to evaluate. Kurt Johnson, one of the founders and CEO of Front Line, intended to remain active in the business post-transaction, so shared priorities and culture were even more important. Front Line engaged Romanchuk & Co. as its exclusive investment banker to lead them through the transaction process because of their extensive experience in the electrical infrastructure industry .

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TAILORED PROCESS CREATES MARKET COMPETITION  

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Romanchuk positioned Front Line as a full-service electrical infrastructure provider of construction, maintenance and emergence response services, and marketed the company to a targeted list of financial and strategic buyers. After substantial interest from numerous potential buyers, Orbital Infrastructure Group, Inc. (NASDAQ: OIG) ("OIG") emerged as the best partner to help both Kurt and Front Line reach their growth initiatives.

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“Front Line has reached a level where it is important for me to partner with OIG and a proven industry leader like Jim O’ Neil to provide long term opportunities for my employees as well as enable us to meet the increasing demands of our customers,” explained FLP’s Founder & CEO, Kurt Johnson. Kurt continued, “As OIG’s electrical power platform, I look forward to teaming with Jim, who shares my values and vision, to take our company to the next level.” 

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The deal closed on November 17, 2021, with a purchase price of $218.4 million. Front Line became a wholly-owned subsidiary of OIG and the senior management team, including CEO & Founder, Kurt Johnson, will remain with the company. OIG expects no organizational changes to Front Line’s successful, long-term operations.

 

OUR EXPERTISE IS YOUR ADVANTAGE  

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We speak to business owners often that are inundated with phone calls, emails and drop-ins from potential buyers. While these offers may be worthy, the most optimal approach to ensure you are maximizing value for your company, both in purchase price and who you entrust its future to, is to leverage the experience and relationships from a financial advisor.

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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. 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.