b'ACompany Joins the Third-generation Industry\'s First Consolidation By Thomas E, Brown Jl Conventions are aforum toIn April an Au 16thO We position theplayers at greatgustIP tar edkey keep your finger oneofget date hadset, with athedin table. th pulsethebeenseriessamenerThis allowed industry. There is apulseof interim action deadlines forthe bankers, underwriters, CIVC, differentinforffe dus maybeat Inuly Wal uple that will e ct our in try,m ion and projects.J ,GRS, a co of founders and our to the impact level of single-plylick, his staff and the underwriterscounsel (r 40 percent epresenting roofing.At the1998Las Vegasstarted the road show in E andofe) toa und the uropethe revenu workroNRCA Convention Iintrod finished on Wall S weeksunacceptabletwo-stageclosing wasucedtreet two to Gregg Wallick, Eric Levine andlaterr giving the presentation 84issue. During dinner, the partners afteGeneral Roofing Services (GRS).times to the different mutual funddecided toalmost $1lion. lendmilrolledsent onhandTen months later Imy com buyers. The interest in the stockThe checks wereapany into our industry\'scon was strong but waned quickly asshake with no "official" firstdocuments. solidation. T concept was tothe market crashed three d iorTheistry among the partners heays pr chemgroup together quality contractorsto theI. The market wasnotofgroup isltdescribe. PO thedifficu to from across therollemstrong enoughsell the stock inWe all recognize that as a team we country,th to into oneconsolidatedcompany,the offering range. Ton onare mu stronger thanindividuconti uechas oughpath,emin me raising the funds thr an initialthe IPOmore money, time,als- it r dsof the bond I public offering (IPO).4a its andin iencewerehad withmycollegefraternity Themillionud convenshares ofwouldsoldneeded to proceed. With the soft brothers.This was a significant/"\'"\'\\\' stockbeon the NASDAQ Stock Market underness and uncertain ofstockevent in theryGRS, the new tythehisto of the symbol of "ROOF."market the risktoo great.funding allowed our deal tomove was $60icagosingle closiThemillion raised by theOn August 22 we met in Ch forward to ang, giving simulIPO wouldtaneously fund theto discuss our future together. Inthe short-term resources needed to cash portion of the company pur just five business days since wekeep GRS o nperatio al. chases, pay off,cre hadabor our public offeringOn January 4, 1999, the closing expenses andted ate a publicly held $1 milliona empt, four companies had p transaction occurred and Gen l 95tt re eraroofing company. T ldsentedvariousformsofprivateRoofing Services become an entity. his wou leave theiginalfounders owning 60financing. This validated the con This event created ak for or mar etthe ercentth outstandingWethp ofestock. Itcept and our plan.decided toroofing contractorat had not prealmost happen as planned.proceed withinentalIllinoisviouslyisted. edCont exWe went through at of plan Venture Capital (CIVC).I decided to sellmy company loning,moneyand duediligenceOn Septem 16 we went tobe it provided an opportunity bercause betweenF a AugustAtlanta for ameeting,theto eliminate my personal risk, give ebruarynddinnerso preparingfor the IPO. Meetingspartners couldthe bankers,meanexecuted exitplanand meet to getrsll expand were held regularlyto knowunderwrite and staff to get thea owed me to continue and each other and plan the specifics ofdetails of the proposed financingmyTheprogramcareer.GRSproour new venture. By Aprithe chem agreement. This continued delay _vided alward beyond any Ifinancia reistryw We were borrow had put tremendous fina andIfamiliarth, at the same time wasorking.ncialwaswiing equipment, sharing customers,time pressures onWallickallowing my company and employ-Gregg la veemployeesandexploring"bestand his company, General Roofingees to stay in p ce with ary Com iesur practices." More than 20 full-timeIndustries(GRI)Theproposedpromising future.pan in oGRS employees were a ady work agreement would getimmediateind ry usually sellto aly lre theust famiing on accounting, information sys funding needed, but called for amember and/oremployee. The an tems,national accoun , humantwo-stepclosingthatwasnotfinancial stress put on ato~\' ts company resour and operationalacceptable to the partner fund aforJ cesissues.s.buyout, provide capital andema profitable continuationr in-6'