LBO Deal Of The Month: Deal By Deal, Heritage Works To Redeem Itself To Investors (from Dow Jones Private Equity Analyst)

Saunders & Associates makes machines that test the accuracy of frequency control devices found in most electronics, and is a leader in its relatively small industry. The Phoenix-based company was founded in 1967 and decided to seek a buyer last year, as members of the founding team, including Jack Saunders, were ready to liquidate their stakes, said Heritage General Partner Peter Hermann. It went on the auction block in August, just as the credit crunch hit. “We launched this into an unknown, unquantifiable credit market,” said Paul Weisbrich, a senior managing director at RSM EquiCo Capital Markets LLC, which advised the sellers.
RSM EquiCo put in a good word for the firm, helping it get past any hesitancy on Saunders & Associates’ part about teaming up with a fundless firm. “They have a reputation of certainty to close,” said Weisbrich. “And they aren’t known for retrading at the 11th hour just to get a better price.”