TestOil
Carleton McKenna & Co (“CM&Co”) acted as the exclusive financial advisor to Strongsville, OH-based Insight Services, Inc. (dba TestOil) in the Company’s sale to Eurofins Environment Testing America Holdings, Inc., a subsidiary of Luxembourg-based Eurofins Scientific (PAR: ERF; “Eurofins”).
Press Release
Cleveland, OH Current management will continue operating under the TestOil brand. Unique advantages deriving from Eurofins’ global reach along with incremental investment opportunities are expected to enhance already bright growth prospects. The acquisition price was not disclosed. Founded in 1988, TestOil is an innovative leader in the fluid testing and analysis field, using technology and remarkable customer service to improve customers’ predictive maintenance results while improving the lifecycle of continuous use equipment. TestOil’s strong entrepreneurial and data driven culture make the company a welcome addition to the Eurofins family.
TestOil strengthens Eurofins’ machine health testing service offerings which will complement core environmental, consumer product, and biological testing services. CM&Co represented TestOil as their exclusive financial advisor providing sell-side M&A advisory services. Dan Richards, Founder and CEO of TestOil said in regard to CM&Co’s contributions, “CM&Co not only made this process more likely to succeed and smoother, they increased the value received, effectively self-funding their compensation many times over.”
Industry Expert
Nora T. Mahoney
Managing Director
Industry Expert
Christopher J. McKenna
Managing Partner
Case Study
TestOil is a Northeast Ohio based industrial testing solutions provider, focusing on oil analysis, turbine oil analysis, filter debris analysis, material identification analysis, and lubricant compatibility analysis for heavy machinery. TestOil works with customers across several industries, including energy, manufacturing, construction, chemical and consumer products.
Carleton McKenna was engaged as sell-side advisor after the owner held months of discussions with a strategic buyer. The owner had been able to increase the offered valuation by 20%. We were informed of the higher negotiated value target, and directed to minimize any transaction activity that could disrupt the business. The owner was satisfied with the valuation and principally wanted assistance documenting the offer and running due diligence. We conducted a rapid, multi-party competitive process (without any management disruption) to create competitive tension and establish discipline within the timeline and LOI expectations. CM&Co was able to drive the buyer to a further increase of 19% beyond the pre-negotiated higher price watermark. The additional value created through targeted negotiation in tandem with conducting a disciplined, competitive process was 10x greater than the success fee earned on the transaction.
