Parachuting in as Corp Dev Team
Deliverables: Corporate Development: Structured Board, Money Raising, Product Development, Company Sale
100 angel investors from around the US invested in a promising new solar inverter technology and an unproven engineer founder. The company had modest success with a residential inverter line, but it wasn’t going far enough fast enough.
The company brought in a veteran HP manager with great engineering credentials to take the company into the big leagues. So that the CEO could focus on a new and revolutionary commercial product line, RedFlash was hired to help organize the board of directors, raise additional equity funding and ultimately help figure out when and how to create liquidity for investors.
Over a three year period the world weathered the worst recession since the Great Depression, witnessing institutions like Bear Stearns and Lehman Bros. go under. Our solar pioneers continued to attempt to raise money in this hellish environment, where private companies with illiquid shares were dying by the truckload. With a burn rate of $600k/month we made a painful decision to halt the company sale process. The company clawed its way through a final R&D process to produce an award winning commercial line of inverters, thanks to the faith and support of one father/son investing team. We went back into the market and saw an offer for $90mm cash and earnout, which closed by 2010 yearend. The combined entity of PVP and Advanced Energy (Nasdaq: AEIS) that resulted enjoyed record sales for their inverter division – about $100 million in first year sales. A victory all ‘round.
- I've been taking in the AEIS announcement news long distance while I'm on Spring Break with the family, but wanted to simply say thanks and good job. Your patience, counsel, and effort were a big help getting us to this result.- M. Fleischauer (Chairman of the Board, PV Powered )
- Thank you for all of your efforts and dedication these past two years getting us through the transaction. I’m sure there were several times you wanted to bail on us but instead kept persevering….and we are very fortunate for that.- R. Laubacher (CFO, PV Powered)