Wireless Control Systems
Helping a leading wireless control systems company enhance its competitive position and capture the attention of strategic investors.
Company Background
The Company’s Power Controls Division (PCD) used wireless technology to control both residential utility meters and remote, mission-critical devices.
Challenge
The Company generated an annual net loss of $3.2 million on revenue of $1.7 million and was unable to raise additional capital to sustain operations. The Company divested its PCD assets to its largest investor and secured creditor, Dutchess Private Equities Fund Ltd.
The project required:
- Creating a strategic plan to further develop PCD’s proprietary utility meter reading system and expand its commercialization.
- Recruiting a new management team, creating a new corporate structure and seeking financing with co-investors.
Contributions
- Created a new, privately held, corporate structure (“PrivateCo”) and provided the initial contribution of IP assets and capital.
- Recruited industry recognized executives as CEO and CFO, who also invested in PrivateCo.
- Developed a valuation model and negotiated with new investors.
- Assisted in the development of PrivateCo’s strategic plan and worked with senior management on execution.
- Assisted in the development of an exit strategy for investors and principals.
Conclusion
Within eighteen months, PrivateCo was acquired by one of the largest privately held firms in the U.S. which represented a 10x return for investors. It was later acquired by a leading provider of meter testing instruments and accessories, and its products are used throughout North America, the Caribbean and Asia in a variety of mission critical applications, including hardened and secure utility control.
Michael Novielli: mnovielli@dutchesscapital.com