Generational Capital Markets Advises Roadrunner Restoration in its Sale to Achates Ventures

By Capital Markets

09/30/2021

Generational Capital Markets, Member FINRA/SIPC and a leading mergers and acquisitions advisor for privately held businesses, is pleased to announce the sale of the controlling interest in its client, Roadrunner Restoration, Inc., to Achates Ventures, RCap Equity, and Deerpath Capital Management. The acquisition closed September 9, 2021.

Founded in 2003, Roadrunner Restoration (Roadrunner) is a leading provider of restoration services related to damage caused by fire, water and natural disasters in Houston and the Gulf Coast region. It provides both mitigation and reconstruction services for customers ranging from insurance carriers and adjusters to property owners, on jobs ranging from small everyday losses to large natural disasters. The Company is an expert at handling every aspect of the claims processes, including inspection, estimation and documentation, resulting in an efficient process for all parties involved in the loss. Roadrunner is targeting a balanced mix between commercial and residential restoration.

“Since its founding, Roadrunner has focused on working tirelessly to respond and complete projects quickly – without sacrificing quality,” said Rick Daniel, CEO of Roadrunner. “We are excited that our new partners will deploy a team of experts to provide operational expertise and financial resources to drive our strategic growth initiatives.”

“We are excited about the opportunity to team up with Roadrunner to help achieve its full potential,” said Samir Bendriss, CEO of Achates Ventures. “Roadrunner is an impressive company that has significant opportunity for growth. Combining the operational expertise of Roadrunner management with the strategic and financial expertise of Achates, RCap and Deerpath creates an excellent team in our view.”

“Rick and Roadrunner’s management team have built an extremely successful organization focused on quality, responsiveness and a customer-centric philosophy,” said Ching Wei, Partner of RCap Equity. “RCap Equity is excited to partner with Rick and his team on the next phase of Roadrunner’s growth.”

Deerpath Capital provided both senior debt financing and an equity co-investment to facilitate the transaction.

Generational Capital Markets’ Senior Managing Director of Mergers & Acquisitions, Chris Heckert, with the support of Vice President Mergers & Acquisitions, Andre Farahmandi, successfully closed the deal. Executive Managing Director Edward Weber established the initial relationship with Roadrunner.

“This is an exciting partnership for both Roadrunner and their new partners. I look forward to seeing these groups expand the Roadrunner brand and help facilitate strong continued growth,” said Heckert.

About Generational Capital, LLC

Generational Capital, LLC, is a Dallas, Texas-based merger and acquisition advisory firm. Generational Capital wholly owns Generational Capital Markets, Inc., Member FINRA/SIPC. More information can be found at https://www.gencm.com/.

Generational Capital and Generational Capital Markets are part of the Generational Group and are affiliated with Generational Equity, LLC, which The M&A Advisor named Investment Banking Firm of the Year in 2016, 2017, and 2018 and Valuation Firm of the Year in 2020.

GCM's most recent awards include The M&A Advisor's 2020 Information Technology Deal of the Year ($10MM-$25MM) and 2020 Private Equity Deal of the Year ($25MM-$50MM).

About Achates Ventures, LLC

Achates is a boutique private equity firm that looks to acquire controlling equity stakes in companies with solid management teams, healthy cash flows and opportunities for growth. Their philosophy is to create successful and profitable partnerships with excellent operators by providing strategic and operational support, in addition to capital required for both organic and structural growth. Achates has a flexible mandate that allows it to tailor each transaction in a way that is optimal for all parties involved.

About RCap Investors, LLC

RCap makes control equity investments and select minority investments in lower middle market companies. The firm is an active investor in profitable and growing enterprises. The RCap team, in partnership with management, seeks to create value through operational improvements, strategic growth initiatives, and acquisitions.

About Deerpath Capital Management, LP

Founded in 2007, Deerpath has provided over 545 middle market and small-cap financing solutions supporting sponsored and non-sponsored transactions, deploying over ?$4.8 billion of invested capital across a broad range of industries, investment products and transaction types.