McDaniel Fire Systems

Situation

McDaniel Fire Systems, LLC (“McDaniel” or the “Company”) provides consultation, design, installation, and services for fire alarms, fire protection systems, and heavy industrial and non-water based suppression systems.

Based in Valparaiso, Indiana, the Company was employee-owned and had been in business for over 70 years.

As a result of recurring losses attributable to a contracting economy and eroding market share, McDaniel’s lender was considering various alternatives, including a forced liquidation of the business.

Solution

McDaniel retained Amherst Partners (“Amherst”) to function as both financial advisor and interim Chief Financial Officer.

Over a six month period, Amherst led a process to refine the Company’s existing business plan and implement corrective actions to improve financial performance.

Results

Leveraging the Company’s improved operating performance, and at the lender’s urging, Amherst was ultimately engaged to represent McDaniel in a sale process.

McDaniel was successfully sold to The Freedom Group, an operationally-focused private equity group.

In addition to a cash payment at closing, The Freedom Group assumed the Company’s liabilities and brought stability to the business.