Mergers & Acquisitions: Bringing Companies Together.

by ​Scott Backes, President – Partner

Many headlines today are highlighting “What’s Next for Small Businesses?” The Pandemic mandatory closures and Phased reopening concerns challenge their future. Brydant Real Estate helps their clients successfully work their way through the challenges. At this challenging time, please contact us for an initial evaluation. It may be time to join your competitor rather than fight them.

The Story: In April 2015, Brydant completed a corporate merger of Anaheim, CA based Omni-Duct Systems and Phoenix, AZ based Typhan Metal Products. Omni-Duct was one of the largest sheet-metal air duct manufacturers in the United States, while Typhan was the second largest in the Arizona market. These companies were fighting for contracts and decreasing their profitability by being competitors.

Scott Backes of Brydant had established relationships with both competitors and as he performed extensive analysis, he determined a financial improvement and competitive advantage that would occur by merging both entities.

​Brydant lead the introduction and discussions. The team performed an analysis of a merger and identified increasing profit margins, decreasing capital & operating expenditures, and expanding market share opportunities.

After several months, both entities not only became comfortable with the idea, they became excited for the opportunity. The merger became “Typhan-Omni” to maintain client recognition and later transitioned to “Omniduct”. The negotiated merger produced value for both parties ending with a "win, win" outcome.

Immediately the joined entity began to see improvements to the bottom line and within a year, EBITDA increased more than 7%.

Brydant’s mission is to strengthen companies in our community and provide positive outcomes to our clients through our holistic approach.

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Author

Scott Backes is an experienced corporate executive that applies his knowledge and business acumen with design, real estate, and corporate operations to become a trusted advisor for a broad spectrum of clients including large & midsize corporations, entrepreneurs, and investors.