Case Study 1: American Tool Rental, Manchester, NH Acquired by NES Acquisition Corp. National Equipment Services (NYSE: NSV) Synopsis:   The company's owners fast-tracked a local concern to regional success. To access the capital that American Tool needed to continue up the "success curve," they chose to align with another growing company. When Growing Means Selling Established in 1988, American Tool Rental Corporation of Manchester, New Hampshire, offers sales, rentals and service of construction equipment and supplies. The company had seen steady growth in recent years reflecting national trends, but for Rick Meserve and Fred Stepanek, equal partners in the business, continuing and maintaining that growth meant making a choice. “We decided that we needed to make a decision; stay independent or join the big guys? We decided to join the big guys. It was at that point that we began to look for people who were interested in buying us.” Finding the Right Fit “NEBC had called on us a year ago and planted the seed.” According to Stepanek, “finding the right fit took time… NEBC President, Rocco Pezza, looked closely at a number of companies that were ready to acquire. We talked to them all. National Equipment Services, the company we settled on, was looking to move and it was a good match. They had a presence in New England and the purchase of our company was part of a natural progression of expansion for them.” Before push could come to shove, a lot of talking and careful thinking had to be done. Says Stepanek, “We´re all Yankees up here. We talked to a lot of people, manufacturers, and representatives, then NEBC hooked us up with a company in Maine who sold to NES a year ago. He arranged for their Vice President to come down twice to meet with us.” With plans to stay on and continue to run day-to-day operations, Stepanek and Meserve needed assurances that NES would not be disruptive. “We needed to feel comfortable that they (NES) would not change everything,” said Stepanek. A Real Catalyst for Growth With help from NEBC at each stage of the negotiations, the final details were worked out and the deal was completed. Says Stepanek, “When we sold, we brought everybody in individually and told them what was going on. There were rumors throughout the shop, but everything we assured them would happen has happened. Personally we are better off, and professionally nothing has changed. We´re still calling the shots, running the business, hiring and firing, buying equipment. Sure, we have to get approval, but there have been no real snags whatsoever.” “In fact,” says Stepanek, “things are better off for everybody. We´ve hired five new people in the last three months, and two or three people have been promoted because of the growth.” Making it Work “NEBC did a very good job for us. They were looking out for our best interests.” For Stepanek, when the going got rough, NEBC was there. “The last month was probably the most hectic time in my life. We had auditors in here for a week. I talked with Rocco, at least once, sometimes four or five times a day. He was there for us, walking us through the process. I have very high regards for NEBC. They got more money for us and for the business, for our salaries and our three-year contract. They were there for us when we had questions and NEBC got it all worked out.”