- Built a Board of Directors. Established strategic board of directors to guide transition of the business into the public realm and to provide business, organizational and industry insights.
- Improved financial reporting and controls. Guided management in the development and implementation of more sophisticated systems, budgeting, financial reporting, internal audit and operating reports to better manage the business.
- Guided corporate development. One of the primary goals of the investment was to develop a national footprint, targeting key U.S. markets while simultaneously expanding into underpenetrated regions. Strategic acquisitions were a core part of the strategy. During the investment period, ARC successfully completed more than 50 local and regional acquisitions, including buying the Company’s next largest competitor on two separate occasions.
- Supported gains in productivity. Supported management as it led the industry in the migration from an analog -based model to a technology-enabled solution. Within a year of completing our investment, the company successfully implemented a proprietary web-based suite of tools branded as Plan Well. PlanWell made the process of managing construction documents easier, faster, more secure and more efficient for customers, and became the accepted industry standard.
- Prepared the business for an IPO. Given the company’s market position, growth and industry leading technology, accessing the public markets through an IPO was a critical value creation strategy.
Over the course of the successful partnership between ARC management and the New Harbor team, the company grew its revenue and EBITDA by over 100% and 145%, respectively. As a result of the substantial growth, and the successful deployment of technology tools and financial reporting and controls, we completed an IPO in February 2005 (NYSE: ARC) and completed the sale of our remaining stock in secondary offerings in 2006 and 2007.
Mohan Chandramohan, the founder and former Chairman and CEO of ARC, is an Executive Advisor to New Harbor.
“The New Harbor principals were strategic thinkers who really took the time to understand our business. They brought outstanding independent directors into the board, and contributed industry-specific strategic value to our company. In the end, their guidance was instrumental in preparing ARC to become a public company.”
Mohan Chandramohan, Former Chairman and CEO