Cascadia Capital Brings in Weston Presidio as Strategic Financial Partner for Purcell Systems

Challenge

Purcell Systems is a leading provider of customizable, modular outdoor cabinetry and enclosures for the telecommunications industry. Purcell engaged Cascadia Capital in late-2003 to facilitate the raising of a strategic round of capital to support the company's capital requirements and expansion plans as it experienced rapid growth. Purcell's founders-having bootstrapped the company from its inception-had built a profitable business that had grown to revenues in the double-digit millions in just four years. With revenues having nearly doubled in 2003 alone, management recognized the need to add a strategic financial partner and to diversify their personal stake in the business while still maintaining operational control.

Solution

Given Purcell's limited exposure to the capital markets and unique positioning within the telecommunications industry, Cascadia Capital's Communications Team assisted the company in effectively conveying its value proposition and market opportunity to potential investors. Cascadia Capital executed a comprehensive preparation and transaction process, and was able to leverage its relationships with private equity investors on both coasts to enable Purcell to present its compelling investment story to a targeted group of funds familiar with investing in like companies.

Results

Cascadia Capital delivered multiple term-sheets from several well-established private equity funds so Purcell could select its capital partner based as much on strategic fit as on proposed deal structure. From initial terms to final selection, Purcell's pre-money valuation proposals from potential investors under consideration nearly doubled-a strong illustration of the competitive process and continuing momentum of the business. Ultimately, Purcell selected Weston Presidio as its investor because of the firm's attractive deal structure and its successful history of working with bootstrapped businesses throughout their growth phases.