Management Buyouts
Trinity is the leading provider of air quality consulting and compliance services in the United States. Trinity’s expertise in the energy, manufacturing, industrial, and utility sectors helps its clients comply with air quality regulations and manage complex issues, such as climate change and environmental sustainability.
Background
Trinity was founded in 1974 by a widely recognized expert on air quality to help companies comply with the Clean Air Act. As Trinity grew over time, the founder/CEO transferred one-third of his equity ownership to Trinity’s managers and employees through direct sales and incentive option grants. He also assembled and groomed a talented management team and began to transition responsibility for day-to-day operations. After more than 30 years, the founder decided to retire, fully transition out of the business, and seek liquidity for estate planning purposes.
Trinity’s founder and his management team chose Sentinel from a limited group of private equity firms. Sentinel’s ability to facilitate a relationship-intensive and complex ownership transition that balanced the demands of multiple parties was a key factor.
Opportunity
- To partner with Trinity’s committed and experienced management team
- To continue Trinity’s proven growth strategy of opening domestic offices in new geographies and select international markets, and by developing new business lines in high-potential adjacent markets, such as greenhouse gas compliance
Accomplishments
Supported a Smooth Transition from Founder/CEO: With Sentinel as their partner, Trinity’s management team transitioned smoothly to new ownership.
Built a Strong Partnership with Management/Employees: In a people-centric environmental consulting firm, Sentinel established a strong and productive relationship with Trinity’s management and employees. More than 70 employees coinvested with Sentinel, aligning their interests with Sentinel’s.
Achieved Growth Objectives: Trinity grew substantially by opening nine new offices—eight in the United States and one in an international market—and by developing a new greenhouse gas compliance business line.
Outcome
In four years, Sentinel and management achieved the growth objectives established at the outset. In 2011, the business was sold to another private equity sponsor in a successful transaction for Sentinel and Trinity’s management and employee partners. Trinity’s employees reinvested a substantial portion of their proceeds in the new transaction.