PLATFORM:
Dauenhauer Plumbing of Louisville, KY $30M to $2B+
Founded in 1958, Dauenhauer Plumbing is a market leader in residential and commercial plumbing services across Kentucky and Southern Indiana, specializing in repair, maintenance, and new construction installations.
OVERVIEW AND BACKGROUND
1
1958
Founded by Raymond C. Dauenhauer Sr., serving the Louisville, Kentucky area
2
1964
Ray Dauenhauer Jr. joined the business and established the modern company named: Dauenhauer and Son
3
2004
Acquired and continued to be locally owned and operated by Chris LeBoeuf, CEO, and his son, Jason LeBoeuf, President
4
2016
Partnered with private equity investors to fuel growth while maintaining minority ownership
PRIVATE EQUITY PARTNERSHIP
In late 2016, the business was growing to plan. They were not looking to retire. They wanted to keep growing but were also looking to take some chips off the table, rewarding themselves for all their hard work and success to that point. Simultaneously, they wanted an opportunity to participate in future ownership and to guide the company through the next phase of its growth.
Working as an advisor on this deal, Good Hope's founder Eric Seifert helped the sellers navigate the world of private equity investors, understanding the pros and cons of these partnerships. Eric matched the right private equity partners and the seller's recapitalized (sold a majority of the business). They wisely kept minority equity ownership, board seats, and executive roles.
GROWTH TRAJECTORY
$30M
Starting Value
Approx. company value before private equity partnership in 2016
$2B+
Current Value
Approx. Enterprise value of TurnPoint Services platform after less than 8 years
8
Years
Time period for exponential growth from regional company to national platform
In less than 8 years, Chris and Jason, with their new partners, went from an approx. $30M company to become a $2B enterprise HVAC platform named TurnPoint Services, with locations / partners all over the United States.
RETAINING OWNERSHIP
Initial Sale
Sold controlling stake to PE firm in 2016, getting cash windfall (bite one)
Business Growth
PE firm supercharged the business while owners maintained minority stake
Subsequent Sale
When PE firm sold, owners got another big payday (bite two)
Process Repeats
Opportunity to repeat with new private equity partner
The Seller's were able to maximize their returns and continued taking "bites of the apple." As the platform grew and recapitalized with new private equity partners, the original sellers were able to take more capital off the table, again and again. They maintained a strategy of accepting a portion of the buyouts in cash while rolling a minority portion back into equity in the company. By doing so, they were able to earn more on subsequent transactions than the original approx. $30 million cash at closing.
SELLER PROFILE
Capital
Private equity investment provided necessary funding for rapid expansion
Collaboration
Partnership between investors and operators created synergistic growth
Experience
Combined industry knowledge and financial expertise accelerated success
Leadership
Skilled owners/operators ready and willing to lead through expansion
The Dauenhauer story is a textbook example of what happens when the right private equity investors partner with top-notch operators in a shared vision to scale an already successful business. It requires capital, collaboration, experience, and skilled owners/operators ready and willing to lead.
LEGACY AND CONTINUATION
Family Business Legacy
From Raymond Dauenhauer Sr. to the LeBoeuf family, maintaining a tradition of excellence
Continued Growth
Expansion from regional provider to national platform with TurnPoint Services
Strategic Advisory
Although Chris LeBeouf passed away in 2023, his son Jason remains involved with Dauenhauer's growth and is a strategic advisor to TurnPoint