Driving is a fact of life for many Americans. Our cars and trucks offer freedom and convenience but aren’t without risk. And the dangers of driving don’t just apply to those in the car. For the men and women who maintain our system of roads, each workday means stepping into harms way. Here, in our first Client Spotlight, we’ll take a closer look at how we partnered with a company on a mission to make America’s roadways safer. And we talk to its CFO about why Fundamental Financial was the right fit.
In January, Fundamental proudly partnered with Action Barricade to allow this provider of life saving traffic safety products to grow into a new generation of family ownership and expansion. Over 67,000 crashes occur in work zones annually, according to the Federal Highway Administration. Thanks to companies like Action, that number is on the decline. With the financing provided by Fundamental, Action sought to expand its already extensive offering of products and services to support that trend.
As an investor and CFO-for-hire, Travis Hough is no stranger to complex growth capital deals. He and I have worked on several business engagements in his previous roles, and we’ve had a friendly referral relationship for many years. Travis stepped in as an investor and CFO to help Action transition ownership from father to son and expand operations across state lines. And he didn’t hesitate to call Fundamental for the funding to make it happen. A $750,000 asset-based line of credit provided working capital for day-to-day operations while allowing the owner to retire some legacy debt.
"I wanted to go with Vince not only because he has a strong financial background and understanding of our company's needs, but I was confident that he would deliver the financing he proposed… with no differences between what he offered and what was documented,” Hough said. “I appreciate the care on the front end of the relationship to ensure what he represented could truly be delivered.” Best of all, “Vince is easy to talk to, honest, and sincere,” Hough added.
And likewise, I can say it was a pleasure working with Hough to enable a great company to grow even stronger.
So what does Action Barricade actually do? For 34 years, the Phoenix-based family owned company has provided a complete range of traffic control services. Today that includes traffic control plans and staffing, not to mention flagger certification training. On the equipment side, they offer sales and rental of construction barricades, traffic control signs, cones, pedestrian barricades, temporary concrete barriers, temporary water-filled barriers, arrow boards, and message boards. So basically everything needed to keep traffic flowing while keeping workers safe.
Nearly six months into the relationship, Action is growing as planned and Hough couldn’t be more satisfied. Looking back on the partnership with Fundamental, he says it’s been a “huge sigh of relief.” Year to date, revenue at Action is up 15%, and they’re on a profitable path upward.
Why was partnering with Fundamental so different? Hough describes past working capital deals as being overshadowed by “high maintenance, overbearing bankers.” Fundamental is a partner who “gets it,” he said. “They don’t pester or give an uneasy feeling.”. "They really take care of clients. They’re easy-going and not stuffy. I actually look forward to speaking with Vince regularly." In the end, Hough says, “The relationship is flowing smoothly…like clockwork."
So next time you’re cruising along smoothly and traffic is flowing like clockwork, think of your friends at Fundamental. And if you or one of your clients could benefit from a funding experience like Hough’s, please don’t hesitate to contact Fundamental Financial today.