Palmer Electric Company Sells To Private Investor
Like many business owners, Mark Palmer didn’t set out to build a business. He founded Palmer Electric Company in Pleasant Valley, Missouri as a one-man operation in 1990, but as his client list continued to grow, he found himself hiring employees and ultimately running an electrical contracting company with several million dollars in annual revenue. After 16 years, he was ready to try something new, and his company was well-positioned for a sale. He hoped to sell the business quickly in order to capitalize on his success in a strong financial market. Palmer also wanted to ensure that a new owner would retain the current staff and maintain good relationships with the company’s residential customer base. He was willing to stay on temporarily after the sale in order to ensure a smooth transition of ownership.
Mariner Capital Advisors began marketing Palmer Electric in February 2006 by highlighting the company’s strengths. In addition to establishing an upward revenue trend, Palmer had built a strong infrastructure, documented many of the company’s best practices, and even written a proprietary software program that helped him understand the costs associated with job bids.
Mariner Capital Advisors relies on multiple sources to identify buyers, including our online buyer registration process. Through this process we ask prospective buyers about their industry preference and net worth to assess whether they are interested in, or capable of, buying a particular company. Using this online tool, we identified several potential buyers for Palmer Electric, but quickly focused on Terry Chapman as the most suitable candidate.
A Kansas City native and graduate of the University of Missouri, Chapman worked for many years as a project engineer for MBK Real Estate in Irvine, California. In 2006, he was ready to return to the Midwest. Chapman had recently made a significant profit on the sale of his family’s California home and he was looking for a business investment. Specifically, he sought a business opportunity that would allow him to utilize the construction and project management expertise he had acquired while building AMC theaters for MBK.
Mariner Capital Advisors completed the sale of Palmer Electric Company to Terry Chapman in October 2006. The sale was completed quickly and Mark Palmer received full value for his company. To ensure a successful transition, Palmer agreed to spend six months helping Chapman learn the business. Chapman planned to retain all of Palmer Electric’s employees and existing residential customers, while also expanding further into the commercial market.
About Palmer Electric
Founded in 1990 by Mark Palmer, Palmer Electric Co. is an electrical contracting company serving the residential and commercial markets in Pleasant Valley, Missouri and the greater Kansas City metro area.
About Terry Chapman
A Kansas City native and graduate of the University of Missouri, Terry Chapman spent more than a decade working as a project engineer with MBK Real Estate Ltd. in Irvine, California where he built movie theaters for AMC.
This document is for informational use only and may be outdated and/or no longer applicable. Nothing in this publication is intended to constitute legal, tax, or investment advice. There is no guarantee that any claims made will come to pass. The information contained herein has been obtained from sources believed to be reliable, but Mariner Capital Advisors does not warrant the accuracy of the information. Consult a financial, tax or legal professional for specific information related to your own situation.