NOVA was an engineering and environmental consulting firm that provides loss prevention, code compliance, quality assurance, geotechnical, environmental and related consulting services.
The company had operations in California, Florida, Georgia, Nevada, North Carolina and New Jersey. Demand for NOVA’s services is driven in part by risk management needs in connection with insurance and lender requirements for construction projects.
INDUSTRY KNOWLEDGE & NETWORK
Stone Point had conducted an extensive “elephant” effort in the environmental consulting industry which resulted in the NOVA opportunity and enabled us to assist with identifying / diligencing potential acquisition and joint venture partners for NOVA.
INTRODUCTION TO CLIENTS & PARTNERS
Stone Point made introductions at the executive-level to various insurance brokers and carriers to NOVA which facilitate NOVA’s ability to compete in several RFP processes.
Stone Point assisted in diligencing several potential M&A opportunities leveraging our industry network. Stone Point assisted NOVA in completing two add-on acquisitions.
EXECUTIVE RECRUITING & ALIGNMENT
Stone Point successfully identified a successor CEO. Stone Point restructured NOVA’s management equity incentive plan and compensation arrangements, which resulted in better alignment between management and shareholders in the face of an industry downturn. Stone Point assisted with negotiating management compensation and equity arrangements in connection with completed acquisitions.
OPERATIONAL ASSISTANCE & GOVERNANCE
Stone Point helped to position NOVA for organic growth by (i) focusing on government and military contracts, (ii) helping to build new offices in attractive markets (San Diego, Northern Florida) and (iii) closing less profitable offices to focus operations on core geographies.
Stone Point negotiated with NOVA’s management team to effectively repurchase Stone Point’s equity interest in NOVA and allow for an exit.
Investments highlighted or discussed in this selection have been selected to illustrate SPC’s investment approach and/or market outlook and are not intended to be an indicator of past or future performance. Each investment discussed in this selection has been selected solely for this purpose and has not been selected on the basis of performance or any performance-related criteria. The investments discussed herein do not represent an entire portfolio and in the aggregate may only represent a small percentage of holdings. Nothing in this presentation shall constitute a recommendation or endorsement to buy or sell any security or other financial instrument referenced herein.