Every business experiences peaks and valleys. But when too much of a company’s success depends on one market, even a well-run business can spend more time managing risk than pursuing growth.

That’s what brought Johnson City, Tenn.-based Powell Construction Company to Oaklyn Consulting. Powell, a design-build industrial construction company serving the mining, aggregates, energy and manufacturing industries, was looking to generate more revenue outside of the mining sector, which represented the majority of its business, formed over nearly 60 years.

Powell didn’t have a specific deal partner in mind or a clear organic path to diversification, making them a strong candidate for Oaklyn Consulting’s time-based advisory model, which allows clients to carefully weigh their options without being pushed toward a particular outcome.

“They understood what we were trying to do better than a few others that we had talked to,” said Devan Welch, president of Powell Construction. “Frank Williamson didn’t push an agenda. He listened. He wanted to hear exactly what we were looking for.”

Oaklyn Consulting’s work with Powell resulted in an asset purchase transaction with North Alabama Fabricating Company (NAFCO), a Birmingham-based fabrication company. Powell will continue serving customers in Johnson City as part of the NAFCO family of operations, with Welch remaining in a leadership role as SVP and general manager.

What Oaklyn Consulting did for Powell Construction

Oaklyn Consulting’s sell-side M&A advisory services included:

  • Running a transparent, structured process: “You could tell they had done a lot of these in the past, so it was very sequential. They knew the steps, they shared the steps with us, they gave us some durations to expect for all of this to take place, and then they followed up on it,” Welch said.
  • Defining who to approach as potential buyers: Powell knew it wanted a partner that shared its values and was interested in augmenting its services rather than changing them. There were only a limited number of companies that matched this goal. Oaklyn Consulting designed an outreach strategy for gauging prospective buyers’ interest, one that inspired engagement and moved discussions along.
  • Preparing the company for buyers, which included building out a virtual data room with all the necessary documents and information buyers would require, all without disrupting Powell’s day-to-day operations.
  • Marketing the company to select buyers: Oaklyn Consulting sent out initial details to prospective buyers, then helped narrow the field to the strongest and most interested candidates.
  • Negotiating the deal structure and terms: Oaklyn Consulting worked out the specifics of the asset purchase, ensuring that the terms were fair to Powell. Oaklyn Consulting does not collect success fees for completed deals, and its hourly billing approach ensured that it was always working in Powell’s best interest, not necessarily to close a transaction that could have been the wrong one.
  • Supporting through closing: Oaklyn Consulting assisted with the purchase agreement, coordinating with attorneys to make sure all the details lined up correctly.

The diversification Powell Construction set out to find

The transaction combines Powell’s hands-on construction work, NAFCO’s fabrication capabilities and the engineering and project planning capabilities of Wolf Point Engineers, another NAFCO business, allowing the company to handle industrial projects from planning through fabrication and on-site construction. The combination gave Powell the missing diversification it set out to find, along with attractive new growth opportunities as a valued division of a larger, growing, diversified business.

For Powell, having Oaklyn Consulting’s expertise in its corner made a process that could have felt overwhelming instead feel manageable and well-guided.

“I know they had other clients, but we felt almost like we were their only one at the time just by how much attention they paid to us. They’ve got a good team that can walk you through the process step by step, and they’re going to give you the attention you deserve.”

Devan Welch, Senior VP and General Manager, Powell Construction

If you or your clients are weighing a sale, a diversification move or another major decision, please reach out.