Company Integration/Strategic Business Planning
Michael Barr worked with an electrical construction company to manage the development of
a fully integrated, industry-specific accounting and job costing software system. The application
was utilized full-time for over a decade.
Following the acquisition of a mechanical contracting firm that had dedicated an entire computer
room to hardware, Mr. Barr, along with an in-house software programmer, developed,
beta-tested and launched a fully integrated accounting and job costing application that could
replace the outdated, inefficient and outsized hardware by running on a desktop server.
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Risk Management
Launch and Management of Worker’s Compensation Pool
While working in the construction industry in the state of Illinois, CRS Advisory Group Principal,
Michael Barr, co-designed and implemented a worker’s comp self-insurance pool, sought
and obtained state approval, and marketed the pool to union subcontractors.
Upon full participation,
the pool was opened, and Mr. Barr successfully managed the innovative insurance
pool as president and chairman, and chair of the claims committee.
Lawsuit Victory Against Lease Holder of Bankrupt Building
During a contract with a design-build general contractor/engineering firm, Mr. Barr’s company
was caught in the middle of a dispute between the GC and the lessee of 100,000 square
feet in an industrial building which had become a foreclosed property. Having not been
paid, Mr. Barr’s company had a lien attached to the lease for the outstanding money owed.
The matter was litigated and a favorable judgment for costs, legal fees and interest of the
outstanding sum was won.
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Negotiations
Negotiations of Multiple Employee and Partner Separation Agreements:
Michael Barr served on numerous occasions as de facto ombudsman between parties to
reach amicable settlements with minimum investigative and legal fees. Mr. Barr was successful
in reaching settlements in all but one case, which resulted in a lawsuit ending in a consent
decree favorable to the company.
Negotiation of Valid Lien Settlement:
In response to a low-ball settlement offer on a valid lien on a foreclosed property, Mr. Barr told
opposing counsel the following, “I know what you think you told me but let me explain to you
what I heard. You authorized me to perfect and foreclose on our lien.” A subsequent, larger
offer of an amount adequate to cover costs was presented to and accepted by Mr. Barr.
The Best Job of the Year is Usually the One You Walk Away from:
While president of Barr Electric, Michael Barr rejected a contract that dictated the subordination
of lien rights to the lender. This was a non-starter issue and while the project would have
brought substantial work to the business, Mr. Barr passed on the contract. Ultimately, it was
reported that a lien had been applied to the property.
Increased sales from $1.5 million to $10 million:
In 1989, following the death of his father, Michael Barr took the helm as president and chairman
of his family’s company to which he returned in 1984, learning the business from the
ground up. The company was busy when their customers were busy--and slow when customers
were slow.
Mr. Barr embarked on a strategic customer acquisition effort, recruiting new
customers and exponentially growing a loyal customer base and sales over a 12 year period
by over 6.5 times.
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Mergers and Acquisitions
The Walk Away:
At the closing of an M&A deal, Michael Barr discovered a document that showed the seller
having a preferred position to his suppliers and expected a prior loan to his business be paid
before the suppliers. Mr. Barr instructed the seller that suppliers must be paid first. The seller
refused and Mr. Barr walked away from the deal.
Sale of Business for 6 Times Book Value and 12 Times EBITDA:
In 1996, as the only family member active in his family’s electrical contracting company, Michael
Barr engaged an investment banker to market the company for sale. A detailed offering
memorandum was developed and the business was marketed for sale. Offers were received
and considered. In 1998, following an update of the marketing memorandum, multiple offers
were received.Ultimately, Mr. Barr negotiated and accepted an offer with a price consisting of
50% cash and 50% stock, based on valuation of 6 times book value and 12 times EBITDA.
Founded Private Equity Firm To Bring Management To Small Companies
In 2007, Michael Barr, along with a business partner, founded a small, private equity firm with
the mission of bringing professional management to companies with little-to-no infrastructure
that were being managed primarily by the business owners. Once the PE firm was
formed, funds were raised to initiate searches for target companies. Two businesses were
visited per day during the first phase, and approximately 100 books were reviewed.
Mr. Barr’s responsibilities included dealing first with intermediaries, then the business owners,
generate offers via LOI, perform due diligence and negotiate to signature. Between 2007 and
2014, ten deals were successfully closed.
In 2010, the private equity firm raised $600,000 to launch a start up in the recycled materials
space, and in 2014 and 2015 more than $1 million was raised to fund the purchase of
additional recycling equipment. |
