Management Buyout


IT management and maintenance provider receives entire capital structure needs

Headquartered in Minneapolis, MN, Comm-Works, LLC is a provider of IT management and maintenance services. Comm-Works specializes in designing, engineering, installing and repairing all aspects of IT infrastructure, including telephone, wireless internet, point of sale, video surveillance and other systems for its customers’ brick-and-mortar locations. The company is focused on serving businesses or companies with a national/global footprint and a desire to maintain a consistent and reliable IT platform across their store or branch network.

In late 2014, the company's majority owner, an institutional investor, indicated a desire to launch a formal sale process to realize its investment after an eight year holding period. Excited by the opportunity to continue to grow the business, the existing Comm-Works management team negotiated a purchase offer and approached the market via SPP Capital Partners, seeking a combination of debt and equity financing to support a management led buyout.

Prudential Capital Group was contacted in February 2015 and indicated its ability to provide the entire capital structure need. Prudential Capital structured a flexible one-stop solution that included a senior revolving credit facility, senior term loan, senior subordinated notes and preferred equity to supplement management's equity contribution in support of the acquisition. Importantly, Prudential Capital's proposal allowed the management team to significantly increase its ownership position and establish majority control of Comm-Works.

Management chose to partner with Prudential Capital based on its long-term, relationship-based approach, prior experience successfully partnering with management teams on similar transaction structures, and ability to provide the entire capital structure, which increased both ease and certainty of execution. With terms agreed, this transaction closed in June 2015.