Andy Smith, CPA / ABV

The $9.25 billion sale of Filtration Group to Parker-Hannifin has entered into a definitive agreement, valuing the innovator at more than $10 billion. Lincoln International was honored to serve as the exclusive sell-side advisor to Madison Industries, and this landmark transaction creates one of the largest global industrial filtration businesses positioned for continued growth.   Read more about this transaction: https://lnkd.in/gqpFX-Hc #industrials #transaction #investmentbanking

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ABS has turned producing reserves into bond-like instruments. The problem for sponsors? The bondholders get paid first. Every month the waterfall clears trustee fees, taxes, LOE, hedges, interest, principal, and reserves before equity sees a dime. Which means one truth: hedges cap upside, production tests cap volume, and the only lever left is cost. Take a live example: Base OPEX = $1.40/Mcfe → DSCR 1.10x → 100% cash sweep → zero residual. Cut OPEX 10% = $1.26/Mcfe → DSCR 1.18x → sweep falls to 50% → sponsor pockets $190k/month while still paying down debt. What looks like a small cost save is actually a release valve in the indenture—shifting dollars from turbo-amortization to equity distributions. And that matters, because oil and gas companies aren’t in the business of structuring ABS for sport. They’re in it to turn that freed-up cash into a competitive edge: building scale as the dominant PDP aggregator and, just as importantly, making real money while doing it. And this requires a different playbook—one closer to Toyota than to traditional field ops. Overlay your cost base with systematic market intelligence: track vendor pricing shifts in real time, time lock-ins to your scale, negotiate concessions from a position of data, not anecdotes. Do that, and you don’t just “run lean.” You manufacture DSCR headroom, ratchet down sweeps, and transform stranded cash into repeatable equity distributions. This is the only lever that matters for sponsors under ABS—and in the next installment, we’ll show how to institutionalize it.

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We want to share a recent transaction we were pleased to advise on at SSK Capital.   SSK Capital served as exclusive financial advisor to R&S Machining, a St. Louis-based precision manufacturing company, in its sale to Threadlock Precision, a growing aerospace and defense manufacturing platform backed by the D. E. Shaw group. Founded in 1992, R&S Machining has built a strong reputation as a trusted supplier of complex, high-tolerance components and sub-assemblies for aerospace and defense applications. The Company’s capabilities span large-format gantry machining, Swiss turning, tight-envelope milling, as well as integrated assembly and fabrication services—supporting mission-critical programs across OEM and Tier 1 customers. The transaction represents Threadlock Precision’s third acquisition as it continues to build a scaled, integrated precision manufacturing network serving aerospace, defense, and industrial end markets. R&S Machining adds meaningful capability depth, particularly in large-format machining and engineered assemblies, and enhances the platform’s ability to support increasingly complex and high-specification programs.   From our perspective, this transaction highlights several themes we continue to see in the market: • Strong demand from platform buyers for differentiated precision manufacturing assets with aerospace and defense exposure • Increased focus on scalable suppliers capable of supporting long-cycle, mission-critical programs • Continued consolidation across the fragmented CNC and engineered components landscape   We are actively engaged with a number of founder-owned and sponsor-backed businesses across aerospace & defense and broader industrial sectors, and we continue to see robust interest from both strategic buyers and financial sponsors seeking platform and add-on opportunities.   If you are evaluating a potential transaction, exploring growth capital, or simply want to compare notes on market dynamics, we would welcome the opportunity to connect.

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KippsDeSanto & Co. is pleased to announce the sale of Powerley (or the "Company") to Convey, a portfolio company of OceanSound Partners and Energy Impact Partners. Headquartered in Detroit, MI, Powerley is a market-leading SaaS provider and pioneer in AI-powered home energy management and customer experience tools for utilities. The Company’s platform provides real-time and appliance-level insights and recommendations that allow consumers to better understand, manage, and reduce their energy consumption. Recently, the Company launched BillWiseAI, an AI-powered tool that enables utilities to anticipate customer needs during usage spikes, rate changes, and billing issues. This acquisition combines Powerley’s advanced energy analytics and AI-powered insights with Convey’s robust customer communication platform to deliver the full spectrum of utility customer engagement, from actionable at-home energy intelligence to automated, compliant communication. Additionally, it strengthens Convey's leadership position in intelligent customer engagement and further enhances its standing as a trusted innovation partner with the largest utilities across North America. Read more about this transaction here: https://lnkd.in/epJB5R_q

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Ziegler is pleased to announce the successful closing of Covenant Living Communities and Services (CLCS) $146,400,000 Series 2025A Tax-Exempt Bonds. Headquartered in Illinois, CLCS operates 20 communities in 11 states with over 5,900 total units, including communities outside the Obligated Group. Bond proceeds will fund new money projects as well as refund various series of outstanding debt. The bonds are rated “A-” (Stable) by Fitch. https://bit.ly/42G3yNa

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Harris Williams is currently advising AlpHa Measurement Solutions, a portfolio company of Prairie Capital, on their pending sale to Enpro Inc. AlpHa Measurement Solutions is a vertically integrated, global manufacturer of liquid analytical sensors and instrumentation, serving diverse industries, including harsh industrial processes, water, and environmental monitoring, with customizable, high-quality solutions and in-house engineering and chemistry teams. The acquisition of AlpHa Measurement Solutions will broaden Enpro’s position in compositional analysis, a growing area within the test and measurement sector. It will also expand Enpro’s offerings with a more complete suite of sensing and instrumentation solutions that ensure safety, consistency, and quality for a wide range of critical processes. We look forward to following their continued success. #mergersandacquisitions https://lnkd.in/eRjyi9Kk #mergersandacquisitions

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On a panel discussing expediting M&A transactions, I point out two ways we can lubricate the wheels, and get these deals done: Manage the buyer's diligence requests and push to move items to post close. We are a forcing function! #MandA #Deals #Mergers #Acquisitions #DueDiligence #LOI #PurchaseAgreement

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RubinBrown Corporate Finance advised Humco Marine Products, Inc. in its sale to Marine Equipment Solutions, a portfolio company of CenterGate Capital. Humco Marine Products Inc. is a St. Louis-based distributor of critical marine products to commercial watercraft operators and repair facilities. Learn more about the transaction: https://lnkd.in/dgrG9PW6 Learn more about RubinBrown Corporate Finance’s Services: https://lnkd.in/dSb5cyM5

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