Management Buyouts

Sentinel acquired Cottman from its three owners, who were seeking to obtain liquidity for estate planning purposes; accommodate the desire of Cottman’s senior executives to remain with, continue to grow, and own a significant stake in the company; and include management in choosing a buyer with whom they shared a common strategic vision.

• To acquire the second-largest, fastest-growing automotive transmission repair system in the United States
• To purchase a proven and well-established brand with strong market position that was poised to continue growing
• To partner with a young and ambitious incumbent management team who had not yet established personal wealth

Completed a Smooth Transition to Sentinel Ownership: Cottman was a 20-year-old business that had been actively managed by three owners who exited at closing. We worked closely with newly appointed CEO Todd Leff, who had been at Cottman for 10 years, to ensure a smooth transition.

Accelerated Growth Strategy: To position Cottman for accelerated growth, Sentinel helped Mr. Leff recruit two experienced executives as COO and CFO to replace two of the retiring founders. We also helped management upgrade Cottman’s IT infrastructure and refine their strategic growth plan, which included greatly accelerating growth by focusing on select underdeveloped markets in which leading competitors had not yet firmly established themselves.

During Sentinel’s 4½-year ownership, Cottman doubled the number of its franchisees and expanded into new regions in which it successfully established fortress market positions. Sales grew significantly and profitability more than doubled. In April 2004, Sentinel sold Cottman in a second management buyout to financial services firm American Capital Strategies. Under leadership of the team Sentinel had backed, Cottman continued to grow and subsequently acquired AAMCO, its largest competitor, to become the U.S. category leader in transmission repair.